Historical Newspapers of South Carolina

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Clinton Mills Clothmaker/ Credit Association News / February 1987 / Page 11 Betty Josselyn explains to Brenda Suber that eligible credit association member savers have free life insurance based on the insured’s savings bal ance, up to a maximum of $2,000. Before Granting Loons Credit Checks Necessary Every loan applicant gives the Credit Asso ciation permission to check his or her credit when a loan application is signed. The Credit Association uses reports from credit report ing agencies to determine the credit worth iness of loan applicants. There will be times when a loan is denied because of information contained in a credit report. The loan applicant may not even be aware of any credit problem. Very few indi viduals are aware of the huge amount of data reported by credit bureaus. According to Credit Association Manager Harvey Dickert, the Clinton Association obtains a credit report on each applicant. The report shows the reporting companies which have extended credit, the status of account balance, and the type of credit obli gations on record. The credit report will also reflect if colla teral has been repossessed or any problems with account collections. If the applicant has ever failed to pay off a reported loan or account, this will be shown in credit report data. Clinton’s access to the CBI Automated Credit file will reveal applicants’ individual payment history and assign a rating based upon the manner in which payments are made. Credit histories where account pay ments are made on a timely basis within 30 days of billing are rated the highest. A special section of the credit report con tains information from public records. Any collection amounts, garnishments, judg ments, state or federal tax liens, or bank ruptcy actions will appears on the report. Also, listed on the report are any com panies which have made inquiries into an applicant’s credit history and the date of the inquiry. A special message will appear if an applicant has had numerous inquiries within a short period of time. “We must check all applicants' credit his tory very closely,” noted Dickert. “Loaning money is a very serious business. Every pos sible precaution must be taken to assure every application is processed properly and credit is extended to those with good credit histories.” “As you can see from the data made avail able through a sophisticated computer net work, each of us are continually building the history contained in our credit reports. Each time credit is extended, we have the poten- Teller and receptionist Betty Josselyn processes a financial transaction for Lisa Pace. Free Life Insurance Available To Eligible Member Savers The Clinton Credit Association provides eligible member savers with free life insur ance based on the insured balance of each member’s savings, up to a maximum of $2,000. Insurance is based on the saver’s age on the date of each deposit and does not de crease as you grow older. The insured por tion of savings balance may not exceed $2,000. “The Credit Association pays the entire premium on this insurance,” says Manager Harvey Dickert. Any employee of the Credit Association will be pleased to answer any questions on the eligibility requirements for the deposi tor's life insurance. Sandi Satterfield is shown checking the credit rating of a loan applicant. tial to establish ourselves as a good credit risk,” continued Dickert. “Each time an individual fails to make payments on a timely basis, or does not satisfy a credit obligation in full, that per son’s credit history is damaged.” “All of us know in today’s economy, busi ness decisions are based on information in credit reports. If the credit report reflects that you are either slow in payingyourobliga- tions or that you do not always pay them in full, you may have difficulties in obtaining new credit,” noted Dickert. If you have a loan application denied be cause of information contained in your cre dit report, the Credit Association will be pleased to provide you with information as to whom you should contact regarding data in your file. “We review employees’ loan applications very carefully,” explained Dickert. “A review of the applicants' work history, the credit report and other factors are all considered before making a loan. Every effort is being made to loan money to those applicants who have a good credit history with financial re sources adequate enough to meet the terms of repayment,” emphasized Dickert. Credit Association Is Experiencing Rapid Growth “The Credit Association is experiencing rapid growth,” says Manager Harvey Dick ert. “We began operations in August, 1986, and as of February 7, 1987, we had deposits exceeding $469,658. Our current associa tion membership is in excess of 2,000. On January 23, 1987, we began accepting loan applications from employees in the four Clinton plants and are currently training per sonnel to permit loans in Geneva in the near future. “We have received over 200 loan applica tions and have granted over 100 loans totall ing $150,000, as of February 10. “Because of the large numbers of applica tions, it is currently taking us four to five days to process an application.” Undercurrent loan procedures authorized by the Board of Directors, theassocation can make unsecured loans up to $2,500 with an annual interest rate of 16%. Secured loans will bear a 10% interest rate. All loans have a minimum payback of $50 per month, not to exceed a 24-month period. “Our association is pleased to be able to have deposits sufficient enough to begin offering loans in the short period of time that the association has been in operation,” ex plains Dickert. “We appreciate everyone’s cooperation and patience as we work through a sizable number of loan applications currently on file.” “Every effort is being made to expedite the loan process,” commented Dickert. No one will be eligible fora loan until he or she has been a member of the association for at least 90 days.