I had a member who had an opportunity to purchase a trailer for her and her family (husband and two children). The trailer was being sold by a private seller and the asking price was $20,000. The member did not have the time or the money to explore mortgage options so she thought that a personal loan would be the best route to go. She started searching, but she had trouble finding something as she was only two months into her job and did not have any relevant credit references that would make her strong candidate elsewhere. She got one offer from a high-interest, high-fee lender known for approving anything. The rate it was offering was 26%. She came to me with the request for $20,000 but made it clear to me that if we cannot do the full amount, then maybe we can approve her for at least $10,000. She said she could make arrangements with the seller to finish the last $10,000 of payments. We were able to finance $10,000 a 14% interest rate for 48 months. Her monthly payment is $274.73. With this financing, she is now a home owner. Previously, she was paying $1,150 in rent before this loan. With loan and space rent combined, she is saving more $150 a month, and with each payment made on time, her credit is improving as well.
CU Strategic Planning, a Callahan company, submitted this member impact story on behalf of the credit union.
