Loan Frequently-Asked Questions

Can I apply for a loan over the phone ?

No. An application needs to be completed for each applicant and submitted with two recent paycheck stubs.

Can you fax me the application ?

Yes. We can fax you the application. You can also download the application to print out.

How long does the application process take ?

In most cases, you will have an answer within 24 hours, frequently sooner. If it needs to go to the Credit Committee, it could take 3 to 4 days.

You say I need to submit two paycheck stubs. What if I'm not working? What if I'm retired?

We will need to be able to verify your ability to repay the loan. If you are retired, all we need is verification of your social security or pension. Frequently, this is directly deposited, so all we need is a copy of your bank statement.

How do I know if I qualify for a loan?

When the loan officer receives your application, a credit report will be run and your debt ratio will be calculated.

A credit report details your credit history over time (whether payments have been made on time) and lets the credit union know of your outstanding balances on credit cards, loans, and mortgages.

A debt ratio calculation indicates whether or not we can make the loan. It is calculated by taking outstanding debts (rent or mortgage payments, loan payments, credit card payments, etc.) and dividing that by your net income (take home pay). We do not include utilities.

The loan officer will then call you and let you know if there are problems, or if your loan is approved. It is important for you to know that you may pay all your bills on time and have excellent credit, but if your debt ratio is too high (meaning you have too much debt for your income) you may not qualify for a loan.

What if I have a high debt ratio based on my paycheck, but I have additional income?

There are many variables in income. There may be additional household income. You may have rental property. You may receive social security, although still working. You may have a part time job. You may get substantial overtime. All of these can be taken into consideration. It is extremely important to indicate any and all of this on your loan application.

If I make payments through payroll deduction, can I get a loan?

Payroll deduction is convenient for the credit union and for our members, but it is strictly voluntary. It does not guarantee a loan approval because payroll deduction may be stopped at any time by the member.

What if I have had a repossession, foreclosure, or bankruptcy?

Usually, any of the above three would be reason for denial. However, since WE ARE A CREDIT UNION, our primary purpose is to make loans for our members. We understand that frequently there are situations beyond your control. If there are extenuating circumstances surrounding your credit problems, we encourage you to explain the situation, in writing, to our credit committee, which is made up of fellow members. This won't guarantee approval, but in many instances, loans have been approved after providing such details.

What happens if I can't get a loan with the credit union?

If your loan is denied, you will receive an adverse action notice in the mail. It is recommended that you come into the credit union and sit down with our loan officer, who can go over your credit report with you and advise you on your options.

How can I check my credit rating?

You can keep an eye on your credit by reviewing your credit report annually. You can request a copy by calling 877-322-8228 or going to AnnualCreditReport.com.

What is the best way to re-establish my credit?

Re-establishing good credit is a time consuming job, requiring patience and discipline. Start by making deposits into your credit union share account, building up your balance. Then use your share account as collateral for a loan. This loan can be as small as $500 for 12 months or $1000 for 24 months. The important thing is to make your payments on time. There is a definite advantage to making your payments on time, over a period of time, rather than just being "current".

In conclusion, we at New Trier Federal Credit Union want you to know that we realize that the process of making a loan is a difficult, stressful job for the applicant who must bare his financial soul. We hope you will give us a chance to demonstrate that we will work with and for you, because we care about our members - you are why we are here.