LOC 1
IS A LOC AN INSTALLMENT TYPE OF CREDIT VEHICLE, OR IS IT A REVOLVING CREDIT VEHICLE?
REVOLVING
AS PER BVCU - WHAT IS THE MINIMUM MONTHLY PAYMENT ONE MUST MAKE ON THEIR LOC BALANCE?
LOC PAYMENTS ARE INTEREST ONLY
LINE OF CREDIT’S CAN ONLY BE SECURED? TRUE OR FALSE?
FALSE – LOC CAN ALSO BE UNSECURED
FOR AND UNSECURED LOAN, HOW LONG OF INCOME HISTORY WOULD WE LIKE TO SEE ?
2 YEARS
HOW IS INTEREST CALCULATED ON MY LOC? IS IT PER DAY, PER MONTH OF PER YEAR?
INTEREST IS CALCULATED DAILY AND PAID MONTHLY
WHEN IT COMES TO A LOC WHAT WOULD BE THREE TYPES OF SECURITY WE CAN USE?
CASH, PROPERTY, GOLD
HOW WOULD A MEMBER APPLY FOR A LINE OF CREDIT?
STATEMENT OF AFFAIRS WHICH GOES OVER MEMBERS ASSETS, LIABILITIES, INCOME AND CREDIT BUREAU
A BVCU TERM DEPOSIT CAN BE USED AS CASH SECURITY FOR A LINE OF CREDIT, TRUE OR FALSE?
TRUE
IF SECURING A LOC WITH PROPERTY WHAT WOULD BE THE MAXIMUM AMOUNT TO GO UP TO ON THE LINE OF CREDIT WITHOUT DOING A HELOC?
50K
I HAVE NO JOB CURRENTLY BUT I HAVE EXCELLENT CREDIT, CAN I PLEASE APPLY FOR A LOC? WHAT WOULD A GOOD ANSWER BE TO THIS MEMBER?
....
WHAT IS THE RULE CALLED WHEN WE DETERMINE ROUGHLY THE LINE OF CREDIT LIMIT FOR MEMBERS?
10/10 RULE - 10% of tangible net worth (net worth to exclude such things as the value of household goods, personal effects and estimated worth of private business ventures) • Plus, 10% of confirmed annual income.
For example, if the member’s personal net worth is $20,000, with an annual income of $60,000, they would qualify for $8,000 unsecured
HOW CAN I PAY OFF MY LOC FASTER THAN ONLY DOING INTEREST ONLY PAYMENTS?
YOU CAN PUT MORE DOWN ON PRINCIPAL BY MAKING EXTRA PAYMENTS
WHEN REVIEWING SOMEONES CREDIT BUREAU AND THEY ARE BELOW 700 BUT ABOVE 650 AND HAVE NO WRITE OFF’S WE COULD LOOK AT EXTENDING CREDIT TO THIS MEMBER? TRUE OF FALSE?
TRUE