Credit union sees spike in home equity activity

For example, with Teachers, a minimum credit score of 620 is required to receive consideration for an approval on any type of refinance transaction, Chapman said. A score of 740 or better is considered excellent and will guarantee the best rate available, he added.  

Customers can also secure refinancing not unlike they would at a mainstream bank. Depending on a customer’s goals, refinancing at a credit union can help them obtain cash to cover expenses such as home improvements or college tuition, obtain a lower interest rate, monthly payment, and/or a lower loan term, consolidate debts such as high-interest credit cards or a second mortgage, and pay off loans faster.

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Teachers FCU is not a new kid on the block, having been founded in 1947 by a handful of teachers to become the national company with $8.9 billion in assets it is today. The more people learn of the segment, the more they are drawn to it, Chapman said.

“People are drawn to the credit union ethos,” he said. “We exist to serve our membership; we’re not for profit. Our focus is to provide value back to our members. So, we try to offer excellent value and services because we work for our members. I think some of the bigger banks have lost their way, and we’re filling a void where they’ve left some of those opportunities on the ground. Credit unions have regained their popularity.”