Beginner VISA or Unsecured Loan

Give me a Chance

Establishing Credit for the first time without having to have a co-signer is not easy.  Many of us found it very complicated and some times impossible.  We often became discouraged…because no one was willing to give us a chance.

My First Opportunity

• St. Jules Credit Union wants to simplify the process for members without established credit by offering a Beginner Visa or Unsecured (personal) loan with a Maximum Borrowing Amount $500.00.  We want you to have the chance to individually prove yourself financially. 
• Please refer to our Loan Rate tab to review the loan rates.
• We have three Loan Officers available on our staff who are able to assist you in your lending needs: Cathy St. Aubin, Lisa Dore, & Diane Lantier
• St. Jules Credit Union is providing you the Opportunity to Establish Credit.  But what you do with your credit (Build or Destroy) will be entirely up to you.

Good Credit is:

• A reflection of yourself individually
• Responsible, Disciplined, Mature, Dedicated, Trustworthy & Successful

If you think the way you pay on a loan does not matter, then read below.

What is a Credit History?  

Credit Histories are a Report Card of an individual’s ability to pay, willingness to honor financial commitments, and a tool for financial success.  You are scored on your accomplishments and/or failures to pay on your loans, credit cards, and other credit obligations.  Your payment history of how you paid on a loan is reported per the term (length) of the loan and additionally will be reported for an additional 7 years from the day the loan paid off.   Good credit (timely payments) can earn you higher scores than bad credit (late payments).  Some of the advantages of having is a better score is that you will most likely get lower interest rates on loans therefore saving yourself some of your hard earned money. 

What are the Effects of Bad Credit?  

There are COSTLY disadvantages to BAD CREDIT & BANKRUPTCY

• Research: In June 2001, St. Jules Credit Union researched the effects of bad credit by calling various companies and organizations such as Insurance Companies, Consumer Credit Counseling, Credit Reporting Agencies, and other financial institutions.  The facts were interesting.
• Insurance Policies: In 2000, some insurance companies started using credit reports for determining homeowners, flood, and vehicle insurance payments.  The insurance companies can charge individuals with bad credit or bankruptcy higher premiums than individuals with good credit.   
• Employment = Hiring Decision: Are you aware that some business hiring decisions can be based on your credit report?  Well it is true!  Bad Credit could cost you from obtaining a better paying job position if they use a credit report as part of the decision process.
• Purchases: When purchasing making a loan, an individual with bad credit can be charged an interest rate as great as 18.00%. 

Example of New Automobile Purchase: Two members are purchasing the same vehicle.  They are each financing $22,000.00 for a term of 5 years.  The difference between the two is their interest rate charged, and the overall cost.

COST EFFECT: The effect of BAD CREDIT will cost the member $4,216.92 overall more in finance charges than the member purchasing the same vehicle with GOOD CREDIT.

Example of Mortgage Purchase: Two members are purchasing a $150,000.00 house for a term of 15 years.  The difference between the two is their interest rate charged, and the overall cost.

15 Years	Good Credit	Bad Credit
Interest Rate:	7.00%	13.50%
Monthly Payment:	$1,742.57	$2,284.99
Total Finance Charge	$59,086.98	$124,310.66

COST EFFECT: The effect of BAD CREDIT will cost the member $65,223.68 overall more in finance charges than the member purchasing the same mortgage with GOOD CREDIT.

Just imagine the same effect on a 30 Year Mortgage. Poor Credit can be COSTLY!

Why Do I Need Credit?  

In almost all cases the good things in life are not free, therefore the majority of individuals will have to work in order to purchase those things we require, need, want and enjoy.   As an example:  Often as we reach adulthood and we are just getting started in the workforce, we may lack the transportation we need in order to get to and from work much less to  be able to go other places such as the store, the doctor, traveling, and etc.   Besides with the prices of vehicles today, many of us do not have the funds in the form of cash or savings to be able to purchase a vehicle on our own.  That is where St. Jules Credit Union will try to help!  As a responsible individual, St. Jules Credit Union provides the financial lending tools you need to reach your financial goals and dreams in life.

Leasons to Learn:

• Good credit does not come easy and it has to be earned:  You will have to work for Good Credit by showing that you are a responsible adult by making your payments before or on the date the payment is due.
• Good credit has to be constantly maintained:  You will have to always make sure that my payments are made in a timely manner.  You have to understand that if you make even one payment late, it will most probably drop my credit score.
• Good credit has Rewards:  If you establish and maintain good credit, you can receive Lower Rates on Loans and therefore saves yourself money!