I heard something the other day that I wanted to address. Someone told me that they wanted to apply for a loan, but were afraid that they would be rejected. If this happened, the person was worried that they would feel embarrassed.
As someone who truly encompasses the values of LACU, my first reaction is “Ahhhhh! I want to give this person a hug!!!” Okay, now that I have THAT out of my system, I want to scream to the hilltops that we will never, ever judge you. We encourage people to come in, chat with us about your needs and then let us help you figure out how we can save you money or determine if we can help get you that new car you need or the bigger home for that growing family of yours.
But let’s push away the hearts and flowers for a second. I’m going to reveal to you exactly what happens if you are not approved for a loan:
A financial counselor will let you know that you have not qualified at the time. Instead of laughing at you (which would never happen here!) or kicking you out the door, the financial counselor will go through your credit report with you. Together, you’ll look at what portions might be, well, bruised. Based on what the credit report says, the financial counselor will be able suggest things you can do to start improving your credit right away. You might even be able to determine a timeline as to when you could reapply for whatever loan you were hoping for.
What’s helpful about this process is that once you see the good, the bad, and even sometimes the ugly on your credit report, you’ll finally be able to determine a plan of attack. I truly believe that a PLAN is the key to achieving your goals!
You should know that we are required by law to give you a denial notice. The notice contains all sorts of information, including your credit score, contact info for the credit bureau that we obtained your credit report from, and information on how you can obtain a free copy of your credit report (you just have to mail that denial notice into the credit bureau we got your info from).
Also, a denial is never listed on your credit report and does not negatively impact your score. For example, if you were denied a loan from us, your credit report would say that Linn Area Credit Union had an inquiry, but it does not say that you were not approved.
I hope that this has taken out some of the mystery for you curious folks. We will always remain professional and you’ll even receive some great financial advice to help improve your future! See, there really is a silver lining to a denial!