What is the difference between a Bank and a Credit Union?
- Banks are for-profit institutions owned by shareholders.
- Banks will often have increased loan rates and lower savings rates.
- Credit Unions are not-for-profit institutions that provide convenient products and services.
- Credit Union members typically experience savings in the form of lower fees and lower
- interest rates than most financial institutions
I’m late on my payments. What should I do?
Reach out to the financial institution that your loan is with to ensure the total amount that is owed.
If you are able to do so, begin making payments or discuss sufficient payment arrangements with the financial institution to become current
How long does it take for a collection to be removed?
Some collection trade lines may be removed from your credit report after seven years. The statute of limitations in Michigan is six years, so we would not be able to actively collect after six years. However, any losses taken will still be owed. If a judgment is involved, the creditor can review the judgment after ten years, allowing for what may result in collections and/or garnishment indefinitely.
If I have a debt sent to collections, will I be able to get a loan in the future?
This is difficult to predict and will likely be up to the financial institution where you are applying. It may impact your ability to get future loans, but there is no guarantee.
What are modified payments?
Modified payments are agreed upon between the member and the financial institution and what they deem sufficient for payments less than the original contracted amount.
What are settlements?
Settlements usually occur on charged-off loans, meaning you are paying less than what is owed.
Is it a good idea to file for Bankruptcy?
Filing for bankruptcy is based on the member’s financial situation. It is best that they speak with a bankruptcy attorney to determine if it is the right step for them.
How will a financial counselor help me?
Financial Counseling can help with taking a deeper look into a member’s finances and financial spending to determine a budget or by looking in-depth at a member’s credit report to provide