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Applying for Credit Loan

Q: Do I need to make an appointment with a Financial Services Officer?

A: Not at all. In fact it is usually faster to apply for a loan utilizing our “Blue Application” form available at the loans counter, or apply online. These applications are reviewed by the next available Financial Services Officer. Of course, should you desire, appointments can be made with a Financial Services Officer for the next available time opening.

Q: How do I apply for a loan?

A: As mentioned above, the fastest method to apply for a loan, mortgage or line-of-credit is to complete the “Blue Application”, or apply online. This simple form may be completed at the counter or completed at your leisure and returned to the Credit Union (with supporting documentation) for processing.

Alternatively, an appointment may be arranged with a Financial Services Officer. The Financial Services Officer will follow a similar format as the “Blue Application” and also require the supporting documentation. The Financial Services Officer will be able to discuss your loan requirements with you and answer any questions you may have.

Q: What supporting documentation do I need?

A: The supporting documentation will vary depending on the type of loan you are seeking. Below are the most common requirements:

Income Verification - All Applications

Pay Cheque Stub
Letter from Employer
T-4 slip(s)
Revenue Canada Assessment Confirmation
3 years financial statements for self-employed

Consolidation Loan

Copy of bills to consolidate

Vehicle Loan

Copy of purchase offer
Make, Model, Serial Number

Line of Credit

No additional information required

Mortgage - First Time Homeowner

Copy of Offer to Purchase
Verification of Down Payment funds

Mortgage - Existing Homeowners

Verification of mortgage balance
Receipt of paid property taxes

Q: What are your rates?

A: Interest rates may vary depending on:

The type and dollar amount of credit you are seeking
Collateral
Credit history

Nelson & District Credit Union is very competitive in the marketplace and seeks to provide our products and services to all members at a fair price.

Q: What happens after I complete the application?

A: Upon receipt of the completed application and supporting documentation a Financial Services Officer will conduct a credit investigation, confirm information on the application, calculate the loan and approve, decline or defer the loan (If more information is required) The Financial Services Officer will then contact you and advise you of the outcome. The Financial Services Officer will advise you at that time the approved amount, the payment amount, the interest rate, and the term. The Financial Services Officer may also approve a loan subject to receiving additional information/documentation and you will be advised of these additional requirements, if any.

Q: MasterCard or Global Payment MasterCard?

A: Applications are available at any branch.

Q: What if I just want to find out if I qualify for a certain credit amount?

A: There are a couple of methods available to determine if you qualify for credit. A formal "Pre-Approval" entails completing all of the above steps for an estimated loan amount. This is helpful for house purchases where you want to know how much you can afford to pay for a home prior to house hunting.

You can also review your ability to obtain credit yourself. Here are a few simple "rule of thumb" measurements:

Have you now or in the past obtained credit?
Did you repay your credit as required?
Do you handle your chequing/savings accounts satisfactorily?
Have you been in the same occupation/employer for at least 2 years?
Will the loan be secured?
Are your total monthly payments (all loan/mortgage payments, property taxes, credit cards, lease payments, and rent) less than 40% of your pre-tax wages? (For two or more borrowers add all payments and all income)

If you are able to answer "Yes" to all or most of these questions you should proceed with the application process. These do not guarantee approval or rejection but can assist you in determining the level of credit for which you could qualify.