Our Lending Philosophy
Our lending philosophy revolves around looking at more than just a Member's credit score; we focus on the story behind the Member. For over 50 years, the Lisbon Community Federal Credit Union has remained faithful to the basic credit union philosophy of "People Helping People". Simply stated, we do not categorize an applicant as an A, B, C, or D borrower. We believe that all Members deserve the same great rate, regardless of what their credit score may be.
Unlike other financial institutions, we will never penalize you with a higher rate because of your credit score. We know that a credit score doesn’t tell the whole story, and that many factors can affect a credit score, factors that we sometimes have no control over. Life isn’t perfect, and your credit score doesn’t always have to be either.
At the Lisbon Credit Union, we consider the following when reviewing a loan request:
Character: Your character is arguably the most important trait considered when reviewing a loan. Character gets to the issue of people – are you honorable when it comes to meeting your obligations? In the end, the Credit Union is looking to make loans to individuals that they can trust to act in good faith at all times – in good times and in bad. We want to know that if things go wrong, that you will honor your commitments to the Credit Union. To be clear – it is not necessarily an issue if you have gone through troubled times in the past. What is more important is how you dealt with the situation. Were you forthright and proactive in communicating problems? Were you cooperative with the financial institution while getting through the distressed period? The importance of character cannot be stressed enough.
Credit History: Your credit history is the track record you’ve established while managing credit and making payments on time. A pattern of slow, late or missed payments could negatively affect your ability to get a new loan.
Ability to Pay: The Credit Union must determine whether you can comfortably manage your payments. Your past income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability and type of income will all be considered. The ratio of your current and any new debt as compared to your before-tax income, known as debt-to-income ratio, will also be evaluated.
Assets: While your household income is expected to be the primary source of repayment, we will want to know if you have valuable assets such as real estate, personal property, investments or savings that can help repay the loan, should you lose your job or experience other setbacks.
In considering your credit history, ability to repay and your assets, we focus on YOU, not your credit score, when reviewing your loan. We encourage our Loan Officers to look for ways to say “Yes” to loans. We look to educate our Members and cross-sell to their needs. The Lisbon Credit Union strives to provide excellent service, competitive rates and terms and quick turnaround time.
WE ARE HERE FOR YOU!