What is the Credit Empowerment Program and how can it help you?

This program is designed to get you started on your financial journey the RIGHT way! Based on the answers provided to the following questions, one of our member advocates will put together a product package to help with your long term goals. 

Credit Start: This pathway is designed if you have little to no credit history. It focuses on establishing foundational credit behaviors and the principles of credit creation and management. The goal is to equip you with the necessary tools to build a positive credit history from the ground up.

Credit Refresh: This pathway is designed if you have existing but poor credit. This program aims to rectify negative credit histories through coaching sessions. The strategy involves identifying credit behaviors, offering educational resources, and guiding you through corrective actions to enhance your credit score effectively.

Credit Overhaul: If you are facing severe credit issues, often including substantial debt or a history of missed payments, this program is for you. It provides a support system involving financial analysis, budgeting help, and customized credit repair strategies. 

You might have heard it's important to have good credit. But what does it mean to have good credit, and why does it matter?

Having good credit basically means that you have a history of using credit responsibly and paying on time. Good credit has benefits even beyond borrowing!

When you apply for new credit, one of the first things your lender will look at is your credit history, or how you've used and paid back credit in the past.  This gives them an idea of how likely you are to repay them in the future.  When you have a good credit history, you are more likely to get approved for future credit.

If you haven't used credit yet, or have limited credit history, Credit Empowerment Program is for you!  You likely have no credit, which can also impact your ability to get a loan, credit card, apartment, employment, or even insurance-- if you have no borrowing history, it's hard for lenders to know whether you're likely to pay them back.

Having a good credit history can also save you money on future credit.  Those with good credit often qualify for lower interest rates on loans and credit cards, which can save you a lot of money over time!

Credit is commonly used to pay for large expenses such as houses, vehicles, boats, education, and even costly emergencies. But you can also use credit for everyday expenses, like when you use a credit card at a grocery store or gas station.

While there are risks if you're not careful, using credit can help you reach your financial goals and set yourself up for success.

Get started with Credit Empowerment.

Credit allows you to make purchases you might not be able to buy up front in cash.  For example, if you want to buy a $20,000 car, you might not have the $20,000 in your account to pay for it. Instead, you can take out a loan from your credit union, use that money to buy the car, then repay the $20,000 to your credit union in small payments over time.

Mortgage loans are like other loans in your life. You borrow an amount, you get an interest rate at which to pay it back, and there's a schedule to make your monthly payments.

The most common type of mortgage is a conventional mortgage. Here are the main points: 

• There is a downpayment, typically of 20% of the value of the home 
• The duration of the loan is usually 30 years 
• The rate is fixed, and it will depend on the borrower’s credit score 

When you purchase a home, the property you are buying is also considered by the lender.  Mortgages are secured by the property, which means if you default on the loan (miss payments), the lender can foreclose and take ownership of it. The lender will make sure the property is in good conidtion and worth the sale price before lending the money.