by Jayne Haynie, Grasslands FCU

Did you know that Credit Unions were first established to aid the working class, tradesmen, and farmers with affordable, short-term credit? Fast-forward to today, credit unions have upheld that commitment by providing affordable loan products to their members. Applying for credit can often feel intimidating and scary, but in reality, credit unions are here to celebrate your big milestone purchases or help navigate tough financial decisions. Whether you are applying for your 1st or 15th loan, I have compiled a few tips to prepare you for your next request!

Application: Keep your pay stubs, tax returns, and balance sheets updated and easily accessible. The application process may vary depending on your Credit Union or request, but you can always expect to provide documentation to verify your creditworthiness and repayment capabilities. Expect to provide multiple months or even years of information!

Provide all the facts: the more detailed you are regarding your request, the better. If you intend on purchasing a vehicle, but present your request as a personal loan, you could be missing out on lower rates or a better loan product.

Monitor your credit report and account closely: You can obtain a free credit report from AnnualCreditReport.com to check for errors before applying for a loan. Missed payments, high credit card utilization, and multiple credit pulls can lower your score. Check your accounts frequently for fraudulent activity. You are the advocate for your own financial well-being — stay informed and in control of your finances. These are best practices to avoid delayed lending decisions.

Maintain Financial Stability: Avoid changing jobs frequently or making large, unexpected purchases during the application and closing process. Lenders often look for 6 to 12 months of stable employment during the loan process. Avoid “easy” and “fast” online cash credit — while convenient, this type of lending can be very costly.

Communicate, Communicate, Communicate: Communicate with your lender when things go wrong. Sometimes major life events can affect repayment ability after the loan has closed. Most Credit Unions offer skip-a-pay programs, extensions, or refinance options to get you back on track. We are on your side!