How UFCU Looks at Your Credit

University Federal Credit Union uses information from your loan application and your credit report to determine whether to grant credit under the terms you request. We look at many factors including income; current level of debt; current amount of loan, credit card and mortgage payments; amount of unsecured debt; time on your job and at your residence; and how well you managed your credit in the past. This may seem no different than any bank or other financial institution, but UFCU’s approach to credit is different in several important ways:

• UFCU loan officers will talk to you about your credit. If your credit history shows some past difficulties, we want to know why. Were the credit difficulties due to a significant life event (death of a family member, serious illness, job loss, etc.) or simply poor financial management? In many cases, we can structure a loan that will help you achieve your goals while allowing UFCU to be a responsible steward of our members' money.
• If we are unable to grant credit, we will tell you why. We’ll help you understand how to correct the issues that may keep you from securing credit now or in the future.
• If your credit improves over time, UFCU will gladly refinance your consumer loan at a lower rate at no cost to you. You won’t find many other financial institutions that will make that promise.

Setting the Rate

UFCU uses ranges of credit scores to determine the interest rate charged on consumer and home equity loans. Credit scoring uses historical data across a broad spectrum of borrowers to predict the statistical likelihood that a borrower will make late payments, stop paying altogether, or declare bankruptcy. That likelihood translates into a numerical credit score. UFCU uses this score only to set rates, not to make loan decisions.

Order a copy of your credit report with a credit score.