VISA
Financial Resource Center

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

Good Credit is:

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

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.

5 Years Good Credit Bad Credit
Interest Rate:   6.50% 13.00%
Monthly Payment:   $430.59 $500.87
Total Finance Charge   $3,835.25 $8,052.17

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:

 

 

Equal Housing LenderNational Credit Union Administration
NCUA - Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government agency. Equal Housing Lender - We do business in accordance with the Fair Housing Law and Equal Opportunity Credit Act