- If a co-signer is required, the co-signer must live and work in New Jersey
- The loan cannot exceed the 15% of the applicant’s annual base salary.
- Income Qualification – The debt/income ratio will be used in evaluating a loan application.
- Credit Report – with FICO Score to determine past payment history, credit worthiness and the terms of a loan.
- If the Credit Union’s criteria for granting a loan are not met, the Loan Officer may require the borrower to provide additional collateral in the form of a co-signer.
Reasons a loan may automatically be denied:
- Monthly debt exceeds 50% of the net monthly income (Debt to Income Ratio)
- Unsatisfied Judgement
- Salary Garnishment
- Previous Bankruptcy
- Previously had caused the Credit Union a loss
- Failure to disclose on the loan application any outstanding loans, debts or judgements
- Unsatisfied debt, collection accounts or charge offs
- Excessive derogatory credit obligations
- Excessive delinquent credit obligations
December 20, 2019