One of the most important benefits of membership in the Food Lion Credit Association is having access to affordable credit services. The Credit Association is committed to meet its members’ needs with credit programs that include real estate, vehicle, stock, and savings secured loans as well as unsecured signature, checkline, and credit card loans.
A commonly asked question is "What does it take to qualify for a loan with the Credit Association?" There are a number of factors that are evaluated in each credit application. No factor is looked at by itself so if you think that you do not qualify based on a single element, please email or call a Loan Officer to ask a specific question.
AFFORDABILITY
The ability to repay current and proposed debts is critical in a decision to extend credit. This ability to repay is determined by obtaining an application that the member submits and verifying the income of the applicant. Verification can come from a recent pay check stub, current tax return, or calling a member’s payroll office to verify stated income on the application. Additional income such as child support, overtime, and part-time income can always be used to qualify, but it must be steady and verifiable. Total debts must also be determined. Obtaining a credit report from a consumer-reporting agency does this. Once total debt and income is determined, a ratio of debt payments to income received is calculated to determine the percentage of debt that is taken from your monthly income. The amount of income left each month is also analyzed to determine if normal monthly expenses can be met. It is critical that the Credit Association not place any unnecessary burden on a member.
WILLINGNESS TO PAY
The willingness of a member to repay the Credit Association is observed by past and current performance on loans with the Credit Association as well as other credit obligations. If a member applies for a loan but has never had credit before, the Credit Association will try to help that member establish credit with a small loan that can grow with time and good payment history. A credit report that reflects delinquent payments, judgments, or unpaid collections or bankruptcy may hinder a member’s application from being approved. The availability of payroll deduction does not lessen the importance of good credit history. Payroll deduction is a fast, convenient means of repayment, but it does not guarantee loan approval.
Click on the specific button to the left of the different types of loans that the Credit Association provides and call our office or email any questions.
