The Credit Union provides quality service to our members by offering lower costs on financial services and providing all members with the same services and the same rates. If the Credit Union is unable to approve a loan, members are entitled to and will receive an explanation of the reasons why the loan cannot be approved. The Credit Union is available to assist with budgeting and correcting credit reporting errors. Our focus is not on profits, but on fair, quality service. All lending is limited to members 18 years of age or older who reside in North Carolina, South Carolina, Georgia, Tennessee and Virginia.

Loan Officers are available at most branch offices to meet and discuss applications with members, and can usually provide an answer to the loan request the same day. The approval of an application is dependent upon the following criteria: ability to pay, credit history, collateral, and purpose.

When applying for a loan, please have the following available:

  • Demographic information (address, former address, social security number, phone numbers, place of employment, length of employment, etc.)
  • Gross monthly income1
  • Residence status and housing payment
  • Number of dependents
  • Alimony/Child Support Obligations

Ability and Willingness to Pay

The ability to repay current and proposed obligations is critical in the decision to approve a loan.

Ability to repay is determined by the following:

  • Verification of gross income1 and any additional available income2
  • Monthly obligations and debts such as mortgage/rent payments, vehicle loans and credit cards
  • Debt Income percentage3
The willingness of a member to repay the Credit Union is observed by past performance on SECU loans and other credit obligations. A credit report is obtained on all members requesting a loan for the first time. In addition, for open end loans, an updated credit report is obtained annually on active accounts.

If a credit report contains credit blemishes,4 the Credit Union may be able to make a loan to help improve the member's credit report. Restructuring or consolidating existing debt can make debts more affordable. The Credit Union may also help new borrowers establish a credit record.

Using Retirement as Collateral

By law, retirement funds are not assignable and may not be used as collateral. Retirement funds on deposit with the State Retirement System are not funds held at the Credit Union. The only sources of funds available for Credit Union lending are the various deposit accounts of members who save with the Credit Union.

Member Loan Review Committee

The Member Loan Review Committee meets regularly to review loan application appeals submitted by Credit Union lending officers. Members of the Member Loan Review Committee are approved by the Board of Directors, are members of the Credit Union, not employees, and serve without compensation. The Member Loan Review Committee is the final decision-making body for loan requests from the membership.

The role of this committee is to provide an impartial decision that is in the best interest of the entire membership. This process of review assures members that loan requests will receive equitable and full consideration. A member may, if desired, personally meet with the Member Loan Review Committee to discuss the loan requested.

In fairness to all members and as a sound business practice, employees of the Credit Union must protect the assets of the Credit Union at all times. Loans are assets of the Credit Union and lending officers are charged with the responsibility of helping members in need with good loans that mutually benefit all members. The Credit Union's lending policies and procedures are designed to limit the degree of risk associated with any loan request.
1 Gross income is income before taxes and other withholdings.
2 Additional income may be used in qualifying for a loan, but it must be steady and verifiable.
3 The debt/income percentage is calculated by dividing total monthly obligations by total monthly gross income. This percentage identifies the portion of a member's gross income that repays monthly obligations and debts. The Credit Union's debt/income percentage guideline should generally not exceed 43%, but the ratio may be higher based on a member's individual circumstances.
4 A credit report that reflects delinquent payments, judgments, unpaid collections, or bankruptcy may hinder a member's ability to borrow money. Filing bankruptcy usually prevents a member from borrowing additional money, and if a member is responsible for the Credit Union incurring a loss, then a loan to that member would not be approved under any circumstances.