Risk Based Lending
5 Star Community Credit Union has a risk-based lending policy. The purpose in offering risk-based loans is to help as many applicants as possible. We recognize that certain members represent more risk than others. We will not grant loans where the probability of repayment is very doubtful.
We recognize the importance of managed risk. We also believe we have members who are being charged extremely high rates with other lenders and we could help with a managed risk program, plus save these members substantial money while helping them rebuild their credit.
We will always use judgement in granting loans. The CSC beacon score will only tell us what the interest rate would be, should we elect to approve the loan. When determining the interest rate for a joint application, the average of the two beacon scores will be used. In the event there is no credit report to score, the credit union will assign a score of C (640) for all applicants.
The member will be encouraged to work hard to improve their credit score.