University of Michigan Credit Union

LOAN QUESTIONS

Do I have to be a member in order to get a loan from UMCU?
What payment options do I have? Can I make loan payments online, over the phone, or by ATM?
Can UMCU deduct my monthly loan payment from my account automatically?
Can UMCU take my payment from my University of Michigan paycheck when it is directly deposited into my account?
Can I pay my loan automatically from another financial institution?
Do I benefit from having an automatic transfer payment?
Can I make a payment from another state?
Can I still apply for a loan or continue my relationships with UMCU if I move out of state?
I currently have an auto loan with another financial institution. Their rate is higher than the UMCU rate. Can I refinance my vehicle with UMCU?
Do I have to come into a UMCU branch to apply for a loan?
How long is the loan approval process?
Do I have to make an appointment to apply or close on a loan?
Can I apply for any kind of loan using the MemberNet services?
Can I apply with a co-signer?
How long is a loan closing appointment?
What if I apply for a loan and then decide I want to cancel the request?
If I am approved for the loan, what is the deadline for accepting it?
If I am denied, will it affect my credit report?
If I have a large account balance, will it increase my chances of being approved?
Do you offer personal loans?
Does the credit union offer a loan for overdraft protection on checking?
What is the maximum credit limit that I can apply for on an Open-End Revolving Credit?
When I took out my loan with UMCU, I asked for a finance term of 48 months. I have been paying on my car loan for the last 36 months and I now have the money to pay off the rest of the payments. Will I be penalized for paying my loan off early?
What is the difference between a fixed and an adjustable rate?
Are your auto loan interest rates the same for both new and used vehicles?
Do you "rate match"?
What is credit life insurance and how does it benefit me?
What happens if my payment is made late?
Can I skip payments because of financial hardships like unemployment?
If I find a car I like, can I apply for a UMCU loan at the dealership?

Do I have to be a member in order to get a loan from UMCU?

Yes. Before applying for a loan at UMCU, you must qualify for membership and open a share savings account with a first deposit of at least $10. Immediately after opening your account, you can submit a loan application.

What payment options do I have? Can I make loan payments online, over the phone, or by ATM?

You have the option to make your payments online through our MemberNet home banking system. You can call and have the money transferred through the help of the TellerPhone audio teller or the Member Service Phone Center. You can authorize a payment from another financial institution through MemberNet, make a payment through the mail, fax a request, or slip the payment through the night depository at the 333 E. William or 305 E. Eisenhower branches. Unfortunately, we cannot accept payments through the ATM machine.

Can UMCU deduct my monthly loan payment from my account automatically?

Yes. We can set up an automatic transfer from your checking account. Payroll deduction can occur monthly or biweekly on the 1st and 15th day of each month.

Can UMCU take my payment from my University of Michigan paycheck when it is directly deposited into my account?

Yes. We can set up a loan payment transfer from your account on the day your payroll deposit is made using payroll deduction.

Can I pay my loan automatically from another financial institution?

Yes. You can initiate a single payment for a specific amount by logging into your account through MemberNet (once you are registered) and typing in your other financial institution's information. Or, you can set up an automatic monthly payment transfer for a set amount from another institution.

You can also arrange a one-time, non-recurring direct payment by phone to your UMCU loan from another financial institution. Call our Member Service Phone Center at 1-800-968-8628 or 734-662-8200. Your account will have the funds automatically deducted from it and transferred to your UMCU loan payment. There is a $3 convenience fee for each one-time ACH payment by phone. The one-time payment or a recurring payment through MemberNet Online Banking does not carry a fee.

Do I benefit from having an automatic transfer payment?

Yes. If you have an automatic transfer from your account, not only is it convenient, it will reduce your interest rate by .25% on your new or used Auto Loans. You may request this anytime during the life of the loan.

Can I make a payment from another state?

Yes. You can either mail in a check for your loan payment or go to your account through our MemberNet Online Banking (once you are registered) and transfer the money from your UMCU savings or checking account onto your loan. You may also make an electronic loan payment from an account at another financial institution from within MemberNet.

Can I still apply for a loan or continue my relationships with UMCU if I move out of state?

Yes. Once you open an account you are a member for life. You can apply for a loan from another state as long as you have a valid, open account at UMCU.

I currently have an auto loan with another financial institution. Their rate is higher than the UMCU rate. Can I refinance my vehicle with UMCU?

Yes. You can apply for a refinance with UMCU at any time. We will set up the loan on your UMCU account and send a check for the payoff amount directly to the financial institution that was financing your loan. You can also refinance a loan that you have with a dealership.

Do I have to come into a UMCU branch to apply for a loan?

In addition to being able to come into a UMCU branch to complete an application, you have the option to apply online through our MemberNet Online Banking service (once you are registered). If you are looking for an auto loan, you can complete the entire process at any one of our participating indirect auto loan dealers, (Credit Union Loans at Participating Dealerships).

Call our Member Service Phone Center at 734-662-8200 or 800-968-8628 to submit an application. The Phone Center hours are Monday through Friday from 7:30 a.m. until 6:00 p.m. and on Saturday from 9 a.m. until 2 p.m.

How long is the loan approval process?

UMCU strives to get all members a loan response within 24 hours of the time you submit your application.

Do I have to make an appointment to apply for or close on a loan?

If you are applying for a home equity loan or a mortgage, an appointment is required to submit your application and for the loan closing. Other loans do not require an appointment, but you should make sure that you have the required loan closing documents when you come into the branch for your loan closing. You may apply for all other loans by phone, MemberNet® Online Banking (once registered), or by coming into the office at any time.

Can I apply for any kind of loan using the MemberNet service?

For mortgages and home equities, call the credit union at 734-662-8200 and ask to speak with a mortgage or home equity specialist in the Secured Lending department.. You may also ask a Phone Center representative to mail a home equity application packet to you.

Can I apply with a co-signer?

Yes. However, you and your co-signer must meet personally with a UMCU representative to submit your applications. If your co-signer is unable to come into the office, the application materials will be sent to him, and his signature must be notarized before the application can be submitted to UMCU.

How long is a loan closing appointment?

The appointment can last anywhere from 20 minutes to an hour depending on the complexity of your loan. To be on the safe side, it is better to allow at least one hour for the entire closing process.

What if I apply for a loan and then decide I want to cancel the request?

UMCU will simply cancel the loan application on our system. This will not be reflected negatively on your credit report and there is no cancellation fee.

If I am approved for the loan, what is the deadline for accepting it?

Your loan approval is good for thirty days from the approval date. If you do not accept the loan within this time, you will be required to reapply.

If I am denied, will it affect my credit report?

Although a denial will not directly affect your credit report, it will indicate that UMCU inquired about your credit report. If you have a large number of inquiries within a short period of time, it can negatively affect your credit score.

If I have a large account balance, will it increase my chances of being approved?

There are many factors that go into a loan decision including: credit score, credit history, gross monthly income, etc. Your account balance does not directly affect the loan decision, although negative account history can be one of the factors considered.

Do you offer personal loans?

UMCU offers unsecured installment loans from $500 - $30,000 to qualified loan applicants. The interest rate for an unsecured installment loan is based on the applicant's credit history.

Does the credit union offer a loan for overdraft protection on checking?

Yes. UMCU has an overdraft protection loan that can be used with all our checking accounts.

What is the maximum credit limit that I can apply for on an Open-End Revolving Credit?

The credit limit is based on eligibility and it ranges from $500 - $8,000.

When I took out my loan with UMCU, I asked for a finance term of 48 months. I have been paying on my car loan for the last 36 months and I now have the money to pay off the rest of the payments. Will I be penalized for paying my loan off early?

No. There are no early repayment fees for paying the loan off early, and you will save money on the amount of interest you would have paid for the remaining 12 months of the finance term.

What is the difference between a fixed and an adjustable rate?

If your loan rate is fixed, it will not change for the entire term of the loan. An adjustable rate can increase or decrease at the end of each quarter. However, an adjustable rate can never increase or decrease more than 3% per year.

Are your auto loan interest rates the same for both new and used vehicles?

Yes. UMCU offers the same low rates for 24 - 60 month loans on both new and used vehicles.

Do you "rate match"?

Yes. We will match another financial institution's rate on Auto Loans up to 1% lower than the offered UMCU rate. You must submit written proof of the interest rate the other financial institution or dealership is offering you. In addition to this discount, you can sign up for an automatic transfer payment and lower your rate by an additional .25%.

What is credit life insurance and how does it benefit me?

Credit life insurance will pay the remaining loan balance if you pass away before the loan is paid in full. If it is a joint loan, both parties must be covered by this insurance. The rate per $100 per month of the outstanding loan balance is $.045 for a single loan holder and $.072 for joint holders. Call our Member Service Phone Center for additional information.

What happens if my payment is made late?

If your payment becomes 30 days past due, it will be reported to the three major credit bureaus: TransUnion, Experian, and Equifax. There is also a late payment fee after 30 days of delinquency except for Visa. A Visa late payment fee is charged on the 10th of the month. In addition to these penalties, you can be denied other UMCU services like ATM use.

Can I skip payments because of financial hardships like unemployment?

You can apply for a loan extension if you have had your loan for more than four months. An extension will allow you to request up to three months without payments for a serious financial hardship. Call our Member Service Phone Center at 1-800-968-8628 ext. 0 for more information about loan extensions.

If I find a car I like, can I apply for a UMCU loan at the dealership?

Yes. You can save time by arranging for UMCU financing for your car purchase right at your favorite dealership. It's called "indirect" lending through CU-DILL (Credit Union Dealer Indirect Lending & Leasing), and it's quick and easy. Ask your dealer about this the next time you shop! The dealer will assist with your UMCU loan application right at the dealership. Click here for the list of current participating dealerships; Credit Union Loans at Participating Dealerships.

Loan FAQ