A member, a homeowner in Brevard County, Florida, applied for a personal loan with a credit score of 514, a debt-to-income ratio of 78%, and an annual income of $36,000. Under traditional underwriting standards at most banks and credit unions, this application would typically have resulted in an automatic denial.
However, the member had been with Community Credit Union for four years as her primary financial institution, maintained direct deposit, and had a consistent history of making on-time payments on Community Credit Union loans. More recently, her household experienced significant financial hardship when her husband was hospitalized for 60 days. As a result, she was forced to overdraft her account to cover critical medication and hospital expenses and fell behind on essential obligations.
The approved loan enabled the member to stabilize her finances by catching up on past-due bills and resolving her negative account balance, allowing her to remain an active member of the credit union. This intervention not only prevented further financial deterioration but also supported her long-term financial stability.
In addition, staff provided financial counseling and demonstrated the value of credit life and disability protection. To better safeguard against future disruptions, the member elected to add these protections to the loan, strengthening her financial resilience moving forward.
