FedStar Credit Union is your one stop for affordable, convenient loan products that help you to reach your financial goals. No matter what type of loan you’re in the market for, we offer a wide variety of loan product to meet your every need. We promise nothing but the best prompt, friendly service and great low rates! After all, you are member owners of our cooperative credit union.
Credit unions only make car loans to members. Credit unions are member-owned cooperatives that cater to a specific group or cross-section of individuals. While membership requirements for credit unions vary, all credit unions do have specific criteria for membership.
Our loans are available to FedStar members. Not sure if you qualify for membership? Please visit our Membership page. We are available for assistance should you have any questions and will be happy to help you with your financial needs. Simply call us at 979-846-7456 or email us at firstname.lastname@example.org.
Good Credit Accepted
Although credit unions offer fantastic interest rates and terms on their new and used car loans, personal loans and other consumer loans, they don't make them available to everyone -- not even to all their members. FedStar Credit Union offers loans to members that can demonstrate considerable credit worthiness before they can obtain a loan. This is the trade-off for the very low interest rates and higher dividend rates on our membership accounts.
In addition to the credit union's specific requirements outlined below, FedStar requires basically the same types of assurances and documentation that commercial banks do. FedStar looks for a certain level of credit scores and strong credit histories, an acceptable debt to income ratio and evidence of the ability to repay the debt. We look for our members to not just obtain a loan, but to become a member for life and take advantage of all that the credit union has to offer.
FedStar Credit Union can help you save a lot of money versus loans from a conventional bank or finance company. We want the credit union to be a good financial fit for both the member and the credit union!
Ready to apply for a FedStar Loan?
You can apply online, but you’ll also need to provide the following information. Generally, you will need to furnish the following:
- Proof of income – this may include your two most recent paystubs or your latest income tax return,
- A deal sheet or buyer’s order for the purchase of an auto loan, tractor, trailer or other consumer products.
- Every member and every loan is different. Apply online and list any information that may help us to make the best decision possible. You may also send an email to us at email@example.com
Ability and Willingness to Pay
The ability to repay current and proposed obligations is critical in the decision to approve a loan.
Ability to repay is determined by the following:
- Verification of gross income1 and any additional available income2
- Monthly obligations and debts such as mortgage/rent payments, vehicle loans and credit cards
- Debt Income percentage3
- Disposable income available for debt servicing
The willingness of a member to repay the Credit Union is observed by past performance on FedStar loans and other credit obligations. A credit report is obtained on all members requesting a loan for the first time. In addition, for open end loans, such as a credit card line of credit, an updated credit report is obtained from time to time on active accounts.
Credit history provides an insight into a member's willingness to repay obligations. If a credit report indicates bad credit4, the Credit Union may be able to make a loan to help improve the member's credit report. Restructuring or consolidating existing debt can make debts more affordable. The Credit Union may also help new borrowers establish a credit record.
Using Savings as Collateral
The only sources of funds available for Credit Union lending are the various deposit accounts of members who save with the Credit Union. These deposits may be held in a member share account or in a member time deposit.
In fairness to all members and as a sound business practice, employees of the Credit Union must always protect the assets of the Credit Union. Loans are assets of the Credit Union and lending officers are charged with the responsibility of helping members in need with good loans which mutually benefit all members. The Credit Union's lending policies and procedures are designed to limit the degree of risk associated with any loan request.
1 Gross income is income before taxes and other withholdings.
2 Additional income may be used in qualifying for a loan, but it must be steady and verifiable.
3 The debt/income percentage is calculated by dividing total monthly obligations by total monthly gross income. This percentage identifies the portion of a member's gross income that repays monthly obligations and debts. The Credit Union's debt/income percentage guideline should generally not exceed 45%, but the ratio may be higher based on a member's individual circumstances.
4 A credit report that reflects delinquent payments, judgments, unpaid collections, or bankruptcy may hinder a member's ability to borrow money. Filing bankruptcy usually prevents a member from borrowing additional money and if the Credit Union has incurred a loss resulting from the bankruptcy, then a loan would not be approved under any circumstances.