Page 3 - West Virginia FCU Fall 2018 Newsletter
P. 3
West Virginia Federal Credit Union The 5 Cs of Credit that Lenders Look
Members Get Cash Rewards, Deep at When You Apply for a Loan
Discounts and Exclusive Savings.
When you apply for a loan, lenders must assess your credit risk—i.e.,
Credit union members have saved nearly $2 the risk to them that you will default on the loan—based on the follow-
billion with Love My Credit Union Rewards ing five factors, often referred to as “The Five Cs of Credit.”
discounts! The more offers you take
advantage of, the more you save. Credit History
This first C contains the most information on you as a borrower. Your
• Get a $100 cash reward for each new line credit history consists of information provided by previous lenders
that have extended credit (loans or credit cards) to you. This history is
you activate, up to 3 lines. Plus, get a $50 listed on your official credit report, pulled from one or more of the three
cash reward every year for as long as you credit reporting bureaus, and includes the names of previous and
are a Sprint customer.* current lenders, types of credit you have, payment history, and credit
history length. Your credit score—based on a scale of 300–850, with
• Save up to $15 on TurboTax Federal better scores at the higher end—will also be checked as an indicator
of risk.
online and downloadable tax products.
Capacity
• Get trusted protection at true savings Lenders need to know if you can comfortably afford the payments on
the loan you applied for. They determine this by looking at your net
with TruStage Auto & Home Insurance income amount, type, and stability (payment regularity/history), some-
Program. times through submitted paystubs or direct deposit history. Another
tool lenders use to assess your credit capacity is your debt-to-income
• Get an exclusive smoke communicator and ratio (DTI), calculated as the ratio of your current credit capacity plus
the new loan debt to your net income.
a $100 gift card with a newADT monitored
home security system. Call 844-703-0123 Collateral (for secured loans)
to activate this special offer. If you’re applying for a home or auto loan, you’re applying for a se-
cured loan—one that’s protected by an asset and used as collateral in
• Earn cash back with Love to Shop at over case you default on the loan. The item acting as collateral is usually
the item you are taking the loan out to purchase. The lender will hold
1,500 online retailers. on to the title of the car or the deed to the house until the loan is paid
in full, including interest. The lender will also evaluate the value of the
To find out more and learn about other collateral. Any existing debt already secured by the collateral will be
valuable discounts, www.wvfcu.org or subtracted from that value. The remaining equity will be a factor in the
LoveMyCreditUnion.org. You get all these ultimate lending decision.
offers and discounts just for being a member
of West Virginia Federal Credit Union. Capital
It’s expected that your income will be the primary way you will make
loan payments; however, your capital—including savings, invest-
ments, and other assets—could be used to help repay the loan if your
income decreases or you incur unexpected expenses.
Conditions
This last C refers to how you intend to use the loan as well as to fac-
tors such as the economy. This especially applies to business loans. A
lender will want to see due diligence on your part to ensure the money
will be used wisely to increase business income and that the market is
favorable for your business to take on this additional debt.
VOL. 1 | FALL 2018 | ISSUE 1 PAGE 3
