State Employees Credit Union is one of the nation’s premier credit unions, boasting assets and membership exceeding $53.1 billion and serving nearly one-quarter of North Carolina residents.
But SECU is now breaking with credit-union conventions by employing “tier-based lending”, potentially forcing members to pay significantly higher interest rates on loans.
Membership
Credit unions are member-owned financial cooperatives that provide comprehensive consumer financial services to their members, from traditional banking products and investment products, to insurance products, loans with competitive interest rates and low membership fees.
State Employees’ Credit Union was started by seventeen individuals for $437 in 1937 and now boasts assets totaling $53 billion and over 2.6 million members – making it the second-largest credit union in terms of assets and second in North Carolina in terms of membership.
Credit union leaders have begun shifting how their business is conducted by opening new branches and investing heavily in technology. Although this change has caused concerns among some members, SECU officials argue it will provide better long-term outcomes.
Deposit Accounts
Credit unions typically provide competitive savings account dividend rates, sometimes higher than local banks or online savings banks. To maximize your money and protect it from potential risk, use BestCashCow to compare current rates at nearby credit unions – it also suggests keeping deposits within NCUA insured limits to maintain maximum security for deposits made.
State Employees’ Credit Union offers personal banking products including checking, savings and money market accounts; loans; investment services and credit cards. Their online banking includes bill pay, check image viewing and Quicken financial management integration integration as well as their CashPoint ATM network that spans across North Carolina.
Members can set up direct deposit to automatically deposit their paychecks into their Checking, CashPoints Global, Savings or Money Market account. In order to do this, depositors must provide either their ABA routing number (for domestic transfers) or SWIFT code (for international transfers).
Loans
SECU offers various loans, the most popular being mortgages and auto loans. SECU also offers personal and student loans at lower fees and rates than traditional banks – an attractive proposition for people with poor or bad credit who require financial help.
To be eligible for a mortgage loan, your debt-to-income ratio must not exceed 43%. Your ratio can be determined by dividing all monthly obligations and debts by your monthly gross income.
Share secured loans offer an effective solution when you require money but do not wish to deplete your savings. Rather, this type of loan uses your shares as collateral and earns dividends during its term – providing access to funds when needed!
Investments
Credit unions offer their members an array of financial products and services, including low-cost investments. However, it is important to understand the risks associated with credit union assets before investing. Unfortunately, many people opt out because of this.
SECU has been operating profitably for 85 years without ever losing money, yet according to industry insiders it may need to change to remain competitive in the financial-services industry. Recently it added new data centers and hired new management, while increasing technology spending despite recession.
Black Knight Mortgage Servicing Solutions have joined the services offered by this credit union and are now making them available to their clients, including McDash industry reports and an actionable intelligence platform – tools which enable lenders to identify trends and enhance operations while the CU provides its members with low-cost yet diversified investment solutions.
Checking Accounts
Credit unions are financial institutions owned and run by their members. Membership of a credit union provides access to various financial services including checking accounts, loans and savings accounts at competitive interest rates compared to banks; it can even be beneficial for people with poor credit.
Lord announced in a December email to Hayes and board members of his credit union’s tier-based lending initiative would result in an estimated increase in loan interest rates for rank-and-file state employees earning between $40k to 70k annually, affecting an estimated 60 percent of existing borrowers of his institution.
SECU will also utilize Black Knight’s actionable intelligence platform and McDash industry reports, which provide delinquency and prepayment overviews, state-level mortgage performance data, as well as more. Black Knight currently serves some of the largest financial institutions in America.
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