On Monday, September 7th, Credit Union branches will be closed in observance of Labor Day. During this time, Member Access, SECU Mobile App, Voice Response, and CashPoints® ATMs will be available. If you need assistance, please contact Member Services Support at (888) 732-8562.
Qualifying for a Loan
Explore the factors that go into qualifying for a loan with SECU. Easily apply online, by phone, or in a branch.
Our lending services
The goal of our lending services is to provide lending options to members at a fair and competitive rate. Loans are assets of SECU, and we strive to help members by offering loans that mutually benefit our members while protecting our assets. We accept applications online, by phone, or in a branch and aim to respond to your loan request within the same business day.
What we evaluate
We review your application and make decisions based on your ability to repay, credit history, and collateral.
Ability to repay
Your ability to repay current and proposed obligations is critical for loan approval. We determine your ability to repay by reviewing the following:
Your income before taxes and other withholdings and any additional available income.1
Your monthly obligations and debts such as mortgage or rent payments, vehicle loans, and credit cards.
Your debt-to-income ratio (your monthly debt payments each month compared to your monthly income).2
Credit history
We consider your payment history on any SECU loans and review your credit report to observe past performance on other credit obligations to evaluate your willingness to repay future obligations.
A credit report that reflects late payments, judgments, accounts in collection, or bankruptcy may hinder your ability to borrow money. If this is the case, we may be able to provide you with a loan to help you pay off unpaid or past due debts and begin the process of improving your credit report. We may also consider approving a debt consolidation loan to make your monthly debt payments more manageable. If you are a new borrower, we may be able to help you establish a credit record.
Collateral
We assess the value of the asset securing a loan (e.g., home or vehicle) to determine the collateral’s value to the requested loan amount (i.e., loan-to-value ratio or LTV).
You can also assign funds in your SECU Share or Share Term Certificate Accounts3 as collateral for some loans. Retirement funds can’t be used as collateral.
What if I don’t qualify for a loan?
If we can’t approve your loan request, you will receive an explanation for the denial. When possible, we may offer an alternative to your request. Want to improve your qualifications for future loan requests? We can review your credit report and budgeting through our Financial Advisory Services.
Additional income may be used to qualify for a loan. Still, it must be consistent and verifiable.
The debt-to-income ratio is calculated by dividing total monthly obligations by total monthly gross income. This ratio identifies the portion of a member's gross income that repays monthly obligations and debts. The Credit Union's debt-to-income ratio guidelines state the ratio should generally not exceed 43%. The ratio may be higher based on a member's circumstances.
Funds in a Special STC Account cannot be used as collateral for a loan.
