Possible Solution – stjcu
NOTE: Funds are sent by check monthly to the creditors owed following the credit union receiving the member’s monthly payment. Creditors owed have to be willing to work with the member and the credit union. Read Below about the Costly Disadvantages of Bad Credit & Bankruptcy.
Loan Rates: Please refer to our Rates tab.
Loan Approval: All loans are subject to credit approval and are based on current policies and procedures.
Loan Officer: Cathy St Aubin
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|
|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|
|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!
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 job position and increased pay if they use a credit report as part of the decision process.
Good credit does not come easy and it has to be earned: I will have to work for Good Credit by showing that I am a responsible adult by making my payments before or on the date the payment is due.
Good credit has to be constantly maintained: I will have to always make sure that my payments are made in a timely manner. I understand that if I make one payment late, it will most probably drop my credit score.
Good credit has Rewards: I can receive Lower Rates on Loans and therefore it saves me money!