Credit union sees spike in activity on its home equity
For example, with teachers, a minimum credit score of 620 is required to receive approval for any type of refinance transaction, Chapman said. A score of 740 or higher is considered excellent and will guarantee the best rate available, he added.
Customers can also obtain refinancing as they would at a traditional bank. Depending on a client’s goals, refinancing with a credit union can help them get cash to cover expenses such as home improvements or tuition, get a lower interest rate, pay monthly and/or a shorter loan term, consolidate debts such as credit card interest loans or a second mortgage, and pay off loans faster.
Read more: Could HELOCs Help Credit Unions Replace Lost Auto Loan Revenue?
Teachers FCU is no newcomer, having been founded in 1947 by a handful of teachers to become the national corporation with $8.9 billion in assets that it is today. The more people learn about the segment, the more attracted they are to it, Chapman said.
“People are drawn to the ethos of credit unions,” he said. “We exist to serve our members; we are not for profit. Our goal is to restore value to our members. So we try to provide excellent value and service because we work for our members. I think some of the bigger banks have gone astray, and we’re filling a void where they left some of those opportunities in the field. Credit unions have regained their popularity.