Industrial Credit Union

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Industrial Credit Union


Welcome to Your guide to better finance whether it be a mortgage, loan, credit, insurance we have advice to help you avoid the pitfalls.

Mortgage Loans

What is a mortgage loan?

Mortgage loans are used for the purchase of either a home or land.

Who can qualify for mortgages?

The qualification process for mortgages is based primarily on income and credit rating. Generally speaking, these are the criteria for taking out a mortgage loan:

  • Legal age (18 in most states)
  • Employed (generally six months of employment is required)
  • FICO score of 620 (higher scores will get better interest rates)

In most cases, you will have to provide pay stubs and tax returns to qualify for a loan. The bank will also check your credit history for late payments, especially if they were late payments on a previous mortgage.

What types of mortgages are there?

  • FHA loans – these loans are backed by the federal government and were created to help individuals who couldn’t normally qualify for a home.
  • Traditional mortgage loans
  • Investor mortgages

Payday Loans

What is a payday loan?

Payday loans are generally loans taken out in advance of your payday. If you need $300 today and you don’t get paid until next week, you’re a good candidate for one of these loans.

What are they like?

Without question, they are one of the worst kind of loans out there. They have insane fees and ridiculous interest. You wouldn’t want to take out a loan like this unless it was a last resort and you didn’t have any other options.

Who can qualify for these loans?

Almost anyone who is 18+ with a job can qualify, as long as you live in a state where the loans are legal.

Personal Loans

What is a personal loan?

There are four main types of loans that people call personal:

  1. Signature loans
  2. Payday loans
  3. Loans from acquaintances (family, friends)
  4. Private loans

What are these loans used for?

They are used for a variety of reasons but can be used for anything.

Who can qualify for these loans?

Each of the four types of loans is extremely different. For example, signature loans are basically unsecured personal loans that you take out from a bank. These loans can only be qualified for by individuals that have solid credit. However, payday loans can be taken out by any legal citizen who has a job and is of legal age.

Are there personal loans for bad credit?

Payday loans are exactly that. However, loans with reasonable interest rates are generally not available for people with bad credit. These bad credit personal loans are excessively expensive.

Where can I get these loans?

I would recommend learning more about each type of loan to find out where you can get them. Each type is completely different.

Signature Loans

What is a signature loan?

If you need to walk into a bank to take out a loan that isn’t for a car or a home, you probably need a signature loan. You don’t have to give the bank a reason for a loan of this type.

What can these loans be used for?

People use these loans for a lot of different things including medical procedures, cosmetic surgery, home renovation, education, unexpected expenses, bills, and shopping. The whole point of these loans is that you don’t have to justify a reason to the bank and you don’t have to provide collateral.

What are interest rates like on these loans?

You should plan on paying at least 4 percentage points higher than you would for an auto loan, and 5 or 6 points higher than you would expect to pay on a home loan.

These loans have higher interest rates because you don’t have to put down collateral. If you’re worried about the interest rate, you should be taking out a loan on a vehicle or you should look at getting a home equity loan.

What are interest rates like on bad credit signature loans?

Traditionally speaking, these loans aren’t offered to individuals with bad credit. However, there are some companies that have put together loans for this situation. However, you should expect to pay around 20% interest if you take them out. This is because there’s no collateral and you have a history of NOT paying your bills on time.

Student Loans

What is a student loan?

Student loans are loans that are used to pay for education. In the United States, these loans are generally used to pay for education after high school. It’s very common for individuals to take out student loans to pay for college, both undergratuate and graduate.

What can these loans be used for?

Generally speaking, these loans can be used to pay for education and any accredited college, university, or trade school. Some private loans are available for schools that are not accredited.

What types of student loans are available?

There are two main types of loans that individuals use: private and federal. Federal loans are most definitely the best option as they are backed by the government. This lowers the interest rate and in some cases allows the student to delay making payments until after school is completed.

Who can qualify for these loans?

Federal loans for students are generally based on need. The government will give them to you as long as you don’t already have access to the funds required to pay for school.

Private student loans are quite different and are generally given based on credit history and ability to repay. Private loans generally have to be paid on while you’re still in school.

What are the most common loans used by students?

Without question, Stafford loans are the most used of all types of loans for students.