Signature
Signature loans, or personal loans, are unsecured, with only the borrower's signature to back the loan.
Remember that the unsecured limit is aggregate per household. So, all of the member's accounts should be checked for unsecured credit, and any loan balances or lines of credit limits should be considered when figuring the member's available limit.
FICO Limit
740+ $20,000
739 - 700 $15,000
699 - 660 $10,000
625 - 659 $ 5,000
625> $ 1,000
Due to the size of the dollar amount difference between the limits, bumping a member within 15 points to the next bucket needs to have a second signature under the Loan Review Process, as outlined in Policy.
Rates are determined by the term of the loan in increments of 12, 18, 24 and 36 months, which is the maximum term.
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For example, a loan can be written with a term of 9 months, and it would get the 12-month rate OR a loan can be written for 25 months and it would get the 36-month rate.
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If the member elects to include debt protection on their loan, terms may be extended up to 6 months at the qualifying rate. So, if a member opts for a 36-month loan with debt protection, the term can be extended to a maximum of 42 months.
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Rate Adjustments:
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ADD 2% for Thin Files - credit reports with less than 18 months of history on at least 3 tradelines (not including any student loans or derogatory!)
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ADD 2% for Recent Bankruptcy - Bankruptcy within previous 3 years (needs Loan Review)
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SUBTRACT .25% for High Credit - Credit scores 780 or higher
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