Nobody likes getting turned down for a loan. And although Fairfax County Federal Credit Union makes every effort to approve all loan requests, it's sometimes necessary to deny an application--to protect the applicant’s financial health, as well as the credit union’s.

When the credit union denies a loan, it's because the applicant has either (1) a poor credit history or (2) a high debt-to-income ratio. Your debt-to-income ratio is the percentage of your total debt compared to income. For example, if each month you pay $400 toward debt with a $1,000 gross (before tax) monthly income, your debt-to-income ratio is 40%.

Although there's no magic ratio to shoot for, a rough guideline is that total debt shouldn't exceed 40% of total income. The credit union also weighs other factors, and requirements vary for different loans.

If your loan request gets rejected, here are a few things you can do to improve your chances for approval on your next application:

* Devise a plan to pay off old loans, including credit card balances, thus reducing your debt-to-income ratio.

* You may qualify to consolidate your loans and credit card balances into one loan at FCFCU; then stop overusing credit cards.

* Get a handle on your budget by comparing what you spend with what you earn. A budget can help you trim expenses and funnel money toward paying off old debts.

* Fix your broken credit history. Fairfax County Federal Credit Union will work with any member who is sincere about re-establishing good credit.

* Bolster your income with a second job--temporarily--to help trim your debt.

Before You Go New (or used) Car Shopping, We Need to Give You a Blank Check!

First, what is an Auto Loan Check?  An FCFCU Auto Loan Check is a check made out to you that's good for up to your approved loan amount. You can use it to purchase a car at any licensed dealer. Since you already have financing arranged before you shop, you can focus on negotiating the lowest price you can for the car you want like you are paying with cash in hand. You can use it for a new or used auto, truck, van or motorcycle. The Auto Loan Check cannot be used for a private sale or to refinance a loan at another institution.

Here’s how it works, once you know how much you want to borrow, make sure the blanks on the face of the check are completed as follows:

·         Choose a repayment method

·         Fill out the vehicle information

·         Fill in the loan amount up to the maximum on the check

·         Endorse the back of the check yourself (both borrower and co-borrower if applicable). Make sure the dealer endorses the back of the check as well, and leave the check with the dealer as payment.

We'll process your loan, according to the amount and term you have specified on the face of the check, when the check clears.

If you've already applied for a loan, just give us a call or email us to request a check. If you haven't applied yet but are interested in buying a car, call and apply for an FCFCU Auto Loan today. We can accept your loan online and type Auto Loan Check in the box at the bottom of the loan request form. You can also stop by any branch. FCFCU will send you your Auto Loan Check and you'll be driving your new vehicle in no time.

Shares:

The APY (Annual Percentage Yield) assumes that dividends are to be added to principal.  Minimum opening deposits for certificates (except where noted otherwise):$1000.  Substantial penalty for early withdrawal.  Share certificate account terms: Dividends are calculated by the Daily Balance Method which applies a periodic rate to the principal each day.  Dividends are compounded and credited quarterly and at maturity.  The APY is quoted based on the assumption that dividends will remain in the account until maturity; a withdrawal will reduce earnings.  Minimums to open Savings - $25; Minimum Balance to avoid a low balance fee for savings - $100.; Vacation or Holiday Savings - $100.  All rates subject to change without notice.  Funds must remain on deposit for full term to achieve stated rate.  Fees could reduce earnings.  For more information about fees and rates for these accounts contact your local credit union office or phone (703) 218-9900.

Loans:

All rates and terms are subject to change without notice and credit qualification.  APR is Annual Percentage Rate.  Managed risk lending pricing is used for vehicle and personal loans.  Maximum interest rate for loans will not exceed the maximum allowed by law.  The APR for certificate secured loans are based on current certificate rate plus 2.500% and subject to change on CD maturity. 

HELOC and Home Equity Loans available only on primary residences in Maryland, DC, and Virginia.  Minimum line of credit is $10,000.  Maximum line of credit amount is $250,000 up to 100% Loan to Value (LTV). Variable rates tied to Prime as published in the Wall Street Journal.