At Peninsula Credit Union, we take immense pride in assisting our members on their financial journeys. Today, we’re thrilled to share an inspiring story that underscores the profound impact of our dedication to member success.
Enter Charlie, one of our skilled team members, who recently had the privilege of working alongside Darrell, our Community Financial Educator. Together, they embarked on a mission to assist a member who had been diligently working to regain control of his finances.
This member had been under Darrell’s guidance for the past month, committed to paying off his multiple credit card balances. With unwavering determination, he had successfully paid off three of the smaller credit cards. However, he faced a looming challenge as one of his remaining credit cards was approaching the end of its zero-interest period. He was understandably concerned about the impending interest charges, given that the interest rates on his existing cards ranged between 25% and 30%.
Seeking a solution, he turned to Charlie, contemplating the possibility of increasing his credit line or obtaining a personal loan to manage two of his remaining credit card balances. The decision was made to wait for two weeks, hoping that the credit bureaus would reflect his recent credit card payoffs.
During this crucial period, Darrell joined the application process, providing invaluable support to the member. His presence not only enhanced his comfort level but also allowed him to gain insight into the dynamics of our member interactions.
After a thorough review of the member’s credit report and financial situation, a significant realization emerged. A personal loan, based on his current credit tier, would not cover the outstanding balances effectively. Charlie then explored an alternative approach: collateralized lending using the member’s vehicles.
The member disclosed ownership of two vehicles, and Charlie, Darrell, and the member held their breaths as Charlie assessed the book value of the second vehicle. To their delight, it had sufficient equity to qualify for our Auto Loan Consolidation (ALC) program.
The ALC program, one of our second chance loan products, has the potential to transform members’ financial situations positively. In this case, it led to a remarkable outcome. The member’s monthly payments were reduced by over $200, and his interest burden was effectively halved.
The difference we made in his financial picture was nothing short of extraordinary.
This story is a testament to our commitment to our members’ financial well-being. It’s about finding innovative solutions, going beyond traditional lending approaches, and empowering our members to take control of their financial futures.
At Peninsula Credit Union, we’re dedicated to helping our members achieve their financial goals and navigate the path to financial stability. We’re immensely proud of team members like Charlie and Darrell, who make these transformations possible.
This member’s journey reaffirms our mission to listen, serve, educate, and care…Always! We look forward to helping more members on their own journeys towards financial success.
