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General Information

All loans are granted based on credit history, employment record, and income versus indebtedness. Your assigned credit score determines your interest rate and allowable debt ratio. It is the policy of PHB Employees Federal Credit Union to comply with all applicable federal and state laws including consumer protection laws. The credit union will not deny services to any member due to race, color, religion, national origin, sex, marital status, age, disability, or any other protected class.

Applications

Credit applications can be submitted in writing, by facsimile, or by phone. All applications require a current earnings statement (paystub) for salary verification purposes.

Interest Rates

The credit union utilizes a “risk based lending” program. This means that we determine the interest rate for borrowers based on the applicant’s credit score. A base lending rate is set by the Board of Directors for each type of loan. The base rate applies to all members with A+ credit. A premium is added to the base rate ranging from .75% to 8% to reflect the amount of risk involved in writing the loan. Credit scoring ranges from A+ through D and Substandard.

Score

Max Debt Ratio Grade

Rate

700+

35%

A+

base

690+

40%

A

base + 1%

659-689

40%

B

base + 2.5%

620-658

38%

C

base + 5%

580-619

35%

D

base + 6.5%

579 & lower

35% substandard

base + 8%

Insurance Coverage

The credit union offers credit disability and credit life insurance coverage (payment protection) through CUNA Mutual Insurance. Premium is based on amount borrowed and term and can be financed with the loan.