Business Loans
What types of business loans do we offer our Members?
- Commercial Real Estate (Owner-occupied and Non-owner occupied)
- Equipment (Vehicles, Machinery, etc.)
- Collateralized Lines of Credit or Operating Loans (Equipment, Inventory, Accounts Receivable, Shares, Cash Value Life Insurance, Etc.)
- Business Credit Cards
- Unsecured Loans and Revolving Lines of Credit (These are secondary product offerings first requiring an operating deposit account and a collateralized loan with IAACU.)
Existing Loans
When I pay off my loan, do my payments automatically stop?
If your payments are set up via ACH or share transfer from your IAACU account, they will be automatically stopped when the loan is paid off. If you pay by payroll deduction, the payment amount will continue to pull from your paycheck and be deposited into your Savings account. To change your payroll deductions, call into our Service Center at
800-676-2541.
Where can I submit my proof of insurance?
You can submit proof of insurance with
this form, through our
portal (you will need your access
code from the letter you received), by fax at 866-823-0744, or by email at
iaacu@imcovered.com.
*The declaration page needs to have the year of vehicle, make, model, vin number, coverages/deductibles, and IAA Credit Union listed as lienholder. An insurance card is not acceptable!
When I pay off my vehicle loan, when can I expect to receive the title?
The credit union must have guaranteed funds on hand before releasing the title. If the vehicle is paid with cash or a cashier’s check, the title can be released that day in person. If it is paid off with a personal check, the title would be available when the funds clear. By mail, your title will arrive in 7-10 business days after the final payment has been processed.
How do I pay my loan with an external account?
Online, go to the “move money” tab, click “loan payment” and set up a transfer. On the mobile app, go to the “more” tab at the bottom of the page, then at the bottom of the list, select “loan payment” and set up a transfer. You can also call into IAACU at
800-676-2541 for a processing fee depending on payment method and amount due.
How do I set up automatic payments?
From an external account: Online, go to the “move money” tab, click “loan payment” and set up a recurring transfer. On the mobile app, go to the “more” tab at the bottom of the page, then at the bottom
of the list, select “loan payment” and set up a transfer. You can also set up recurring payments by calling into the service center at
800-676-2541.
From another IAACU account: In online banking under the “move money” tab, select “transfer” and move money from your account to your loan.
Home Equity Loans
What are my options when looking into a home equity loan?
There are 2 options for Home Equity Loans.
Option 1 is a Home Equity Line of Credit (HELOC). This is a line set with a limit similar to a credit card and offers a variable rate. You only pay interest on the portion of the line you use. For example, you have a $20,000 limit but a $5,000 balance, your monthly payment is based on the $5,000 balance. This loan is great for home improvements, paying for education, or as a “safety net” for the unforeseen future. An interesting feature of a HELOC is the fixed rate partition. This allows you to designate a portion or all of the line at a fixed rate for a 10 year period. This works well for people who make major purchases on their line and intend to pay them off over a longer period of time without the risk of rising rates. There is a $100 processing fee for this option. As the fixed line is paid down it can be used again at the variable rate. For example if you have a line for $20,000 with $10,000 on fixed rate for college tuition. After paying for a year you have paid of $2,000 of the fixed portion you would have $12,000 available on the line.
Option 2 is a fixed rate Home Equity loan. This option is available from 5 to 30 years. The Home Equity loan is an installment loan with a fixed rate for the entire period. In this option you take the entire amount of the loan at closing and pay the loan back in equal monthly installments for the designated time period. The ability to draw funds in the future is not available on this type of loan.
What is the difference between a fixed rate and a variable rate loan?
A fixed rate is agreed upon at the time of closing and does not fluctuate with market conditions. The rate for your first payment will be the same rate as the last payment. A variable rate can change up or down at any point over the life of the loan depending on market conditions. The HELOC is our only variable home equity product.
When can I take an advance on my existing home equity loan?
If you have the HELOC, you can take an advance through on-line banking, writing a check from the HELOC checkbook, or by calling the Service Center. HELOC advances and checks have to be a minimum of $250. These advances can be taken at any time for the first ten years of the line.
Can I take an advance on a fixed rate loan?
The only fixed rate loan you are able to take an advance on is the HELOC with a fixed rate partition. There is a $100 processing fee to lock in additional funds and the $250 advance minimum still applies.
How is the variable rate calculated?
The variable rate is calculated by adding or subtracting a margin to the Prime rate. The margin you are charged is dependant upon the loan to value of the HELOC.
0 -80% is Prime - 0.250%
80.01 - 90% is Prime + 1.000%
90.01 - 100% is Prime +2.000%
EXAMPLE:
If prime rate today is 8.000% and you have an 80% HELOC your rate would be 8.000% (Prime) - 0.250% (margin) = 7.750% (your rate).
How are my payments determined and will they change throughout the course of the loan?
On a fixed rate loan the payments are determined by taking the amount of the loan and the interest rate and amortizing over the desired period of time. Payments for the lines of credit up to 80% LTV are interest only. Payment on lines of credit up to 90% are interest plus .5% of the principal balance.
EXAMPLE:
If you had a balance of $20,000 on a 90% HELOC at a rate of 9.000% your payment would be calculated-
9.000% (rate) / 365 (days in year) = .00025 (daily interest) x $20,000 (balance) = $5.00 (daily) x 31 (day in month)
= $155 interest portion of the payment.
To figure the principle amount required-
$20,000 (principle balance) x .5% (portion of principle due) = $100.
You would then add $155 for interest to $100 for principle to get a total of $255.
These payments can change as the principle balance is paid down or increased through an advance.
Mortgage Loans
What factors are reviewed to determine approval?
We look at credit scores and credit history. Some programs are driven by your actual Credit Score and have minimum requirement. Other programs look less at the score and more at your overall credit history. This helps buyers with limited credit or members who had credit issues in the past and have rebuilt a new credit reputation. We figure your debt to income ratio which is the difference between you pretax and deduction income and your monthly debts. The industry standard is 28% of your monthly income can be used for mortgage payments, property taxes, and home owner’s insurance; and 38% of your income is used to satisfy all debts including the new mortgage. Other debts we include are car payments, credit card payments, student loans, etc. Finally we look at the value of the house as opposed to money down or financed amount. Conventional financing is going to require at least 5% cash down to qualify for a loan.
What fees are assessed during the mortgage process?
We only charge fees we incur on your behalf during the mortgage process. The most typical fees are title and appraisal, but there are city, county and state specific fees depending on where you live. Most closings costs run between $600 and $1,200. Unlike other lenders, we do not charge “JUNK” fees such as underwriting, processing, or origination fees. We also price our loans without points (pre paid interest charged to the borrower in a lump sum amount at closing to be able to offer a lower interest rate) which also differentiates us from other lenders.
Consumer/Auto Loans
What is a Consumer Loan?
A Consumer Loan is basically any type of loan that does not have to do with you home. At the IAA Credit Union, our consumer loans include personal loans, secured loans, auto loans, recreational vehicle loans and credit cards.
How do I apply for these loans?
There are a few options. You can apply online at our
website or call into our call center and do the application over the phone. For auto loans, this process should be completed before purchasing the vehicle.
How do I qualify for a consumer loan?
Qualification for these types of loans is primarily based upon the applicant’s monthly income compared to their monthly debt load, credit score and credit history. Each application is individually reviewed in order to best meet the needs of our members.
What are the rates for auto and personal loans?
All
loan rates are posted on our website or can be found at each of the branches.
They are subject to change often, so be sure to get the most updated rate. At this time, all posted rates include a .50% discount for Platinum Checking and .50% for auto pay.
What is the length of term for Consumer loans?
Personal loan terms are generally for no more than 36 months. Auto Loan terms are generally for no more than 72 months. Recreational Vehicle Loan terms are determined by the collateral, applicant’s credit and loan amount.
Do I need to be approved for the auto loan before I find a vehicle?
Not necessarily, but it is recommended that you submit an application and are preapproved before signing for the vehicle. This way, all that the dealer will need to do is fax (309-557-2604) the purchase agreement to the credit union when the deal is complete. Once the final purchase price is established and documented, then the loan can be completed.
Do you offer payroll deduction?
We have an integrated payroll deduction program with several of our sponsoring companies including COUNTRY Financial, GROWMARK, and IAA (Illinois Farm Bureau). IAACU accepts payroll deduction from any employer able to ACH Payroll funds. Please check with your employer’s payroll department to see if they can support it.
All Plastic Cards
How long does a replacement card take to get to me?
If you are local, you can come in and we can print you an Instant Issue Debit card. If you are not local or need a Credit Card, those take 7 to 10 business days to arrive in your mailbox. They are mailed in a plain white envelope.
How do I view transactions for my credit card?
You can view transactions from our IAACU Cards APP. The APP can be downloaded from your APP store. Once you have that downloaded and register your card, the card will show on the main screen. Click on the card and transactions will be listed there for you to view.
How do I make a payment on my credit card?
There are three ways to make a payment to your VISA.
- You
can mail your credit card payment to our VISA processing center at PO Box 660493, Dallas, TX 75266-0493 or to IAA Credit Union | 808 IAA Drive, Bloomington, IL 61701.
- You can log in to the IAACU Cards APP and click on the Credit Card. At the bottom of that screen, you will want to click on "make a payment". This will take you to the payment screen. You can make your payment with an IAACU account or an outside bank account.
- Log in to online banking, select the credit card number listed under your accounts,
and then on the right-hand side of the credit card screen there are "Quick
Links." Select "make a payment." To set up a payment
from an outside bank account, select "edit account info" and change
what account you would like the payment to come from. If you do not have online
banking, simply mail your payment in. (Please Note: all payments take 24 hours
to process and reflect on card activity).
