Withdrawing money from a 9-month CD before the term ends typically incurs an early withdrawal penalty. At People Driven Credit Union, the Early Withdrawl Penalty is a Loss of 90 days of interest for withdrawing funds early.

Yes, your money is safe in a 9-month CD. At People Driven Credit Union, our CDs are insured by the NCUA (National Credit Union Administration) up to $250,000 per depositor.

The difference between the Dividend Rate and APY (Annual Percentage Yield) lies primarily in considering compounding. Here’s a breakdown:

Interest Rate

• Definition: The interest rate is the nominal rate at which interest is paid on the principal amount.
• Compounding: It does not account for how often interest is compounded. It is simply the rate without considering the effects of compounding within the period.
• Usage: Often quoted as an annual rate, but it can be applied over different compounding periods (monthly, quarterly, etc.).

Dividend Rate

• Definition: Similar to the interest rate, but typically used by credit unions or certain investment accounts to describe the rate paid on deposits or investments.
• Compounding: Like the interest rate, it does not account for the compounding frequency.

APY (Annual Percentage Yield)

• Definition: APY reflects the total amount of interest earned on an account in a year, accounting for the effect of compounding interest.
• Compounding: It includes the effects of compounding interest. Which means it shows the real return on investment or savings over a year.
• Formula: The formula for APY is:

  APY = (1 + r/n)^n - 1

  Where r is the nominal interest rate, and n is the number of compounding periods per year.

Dividend Rate vs APY Example

Interest Rate/Dividend Rate: If a savings account offers a 5% interest rate compounded monthly, the nominal rate is 5%.

APY: When considering the monthly compounding, the same account will have an APY slightly higher than 5% because the interest earned each month also earns interest in subsequent months.

Key Differences

• Compounding Effect: APY incorporates the effect of compounding, whereas the nominal interest/dividend rate does not.
• True Earnings: APY provides a clearer picture of the actual annual earnings from an account or investment.
• Comparison: APY is a better metric for comparing different financial products as it standardizes the impact of compounding across different offers.

In summary, while the interest rate or dividend rate gives you an idea of the annual rate of return without compounding, the APY gives you the actual yearly return, considering the compounding of interest.

APY stands for Annual Percentage Yield. It is a measure of the total amount of interest earned on an account based on the interest rate and the frequency of compounding over a year. APY is a useful metric for comparing the annual earnings on different savings products, such as savings accounts, CDs, and money market accounts, because it standardizes the effect of compounding.

Key Points About APY

• Includes Compounding: APY accounts for how often interest is compounded (e.g., daily, monthly, quarterly), which can significantly affect the total interest earned over time.
• Comparison Tool: APY provides a standard way to compare the annual interest earnings of different savings products, regardless of how frequently interest is compounded.
• Formula: The formula for calculating APY is:

  APY = (1 + r/n)^n - 1

  where r is the nominal interest rate (expressed as a decimal), and n is the number of compounding periods per year.

• Higher APY: A higher APY indicates that you will earn more interest on your money over a year, assuming the same principal amount.

Example

For example, if a savings account offers an interest rate of 5% compounded monthly, the APY would be higher than 5% due to the effect of monthly compounding. This makes APY a useful metric for comparing the real return on different financial products.

A 9-month CD works as follows:

• Opening the CD: You deposit a lump sum of money into the CD account. The amount often needs to meet the bank or credit union’s minimum deposit requirement.
• Fixed Term: The money is committed to the CD for a fixed term of nine months. During this period, you cannot add to or withdraw from the principal amount without incurring penalties.
• Interest Rate: The bank or credit union pays you a fixed interest rate on the deposited amount for the entire term. This rate is usually higher than that of a regular savings account because the bank can use your money for a predictable period.
• Interest Accumulation: Interest is typically compounded and credited to your account at regular intervals, such as monthly or quarterly.
• Maturity: At the end of the 9-month term, the CD matures. You then have a few options:
  • Withdraw the funds: You can take out your initial deposit plus the interest earned.
  • Renew the CD: You can roll over the funds into a new CD, either for the same term or a different one, possibly at a new interest rate.
  • Transfer the funds: You can transfer the money to another account.
• Early Withdrawal Penalty: If you need to access the money before the 9-month term ends, you will likely face an early withdrawal penalty. This penalty varies by institution but generally involves forfeiting a portion of the interest earned.
• FDIC/NCUA Insurance: If the CD is held at a bank, it is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor per bank. If held at a credit union, it is insured by the NCUA (National Credit Union Administration) with the same coverage limits.

A 9-month CD can be a suitable option for short-term savings goals, offering a balance between earning a higher interest rate and having your money tied up for a relatively short period.

A 9-month CD (Certificate of Deposit) is a type of savings account offered by banks and credit unions. Here are the key characteristics:

• Fixed Term: It has a maturity period of nine months, during which the deposited money is locked in.
• Interest Rate: Typically offers a fixed interest rate generally higher than regular savings accounts.
• Minimum Deposit: Often requires a minimum deposit amount to open the account.
• Early Withdrawal Penalty: If you withdraw the funds before the 9-month term ends, you usually incur a penalty, a portion of the interest earned, or a specified fee.
• FDIC Insured: In the United States, CDs from credit unions are usually insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor per credit union.

A 9-month CD can be a good option if you have a specific short-term savings goal and want to earn a higher interest rate without taking on much risk.

The difference between the Dividend Rate and APY (Annual Percentage Yield) lies primarily in considering compounding. Here’s a breakdown:

Interest Rate

• Definition: The interest rate is the nominal rate at which interest is paid on the principal amount.
• Compounding: It does not account for how often interest is compounded. It is simply the rate without considering the effects of compounding within the period.
• Usage: Often quoted as an annual rate, but it can be applied over different compounding periods (monthly, quarterly, etc.).

Dividend Rate

• Definition: Similar to the interest rate, but typically used by credit unions or certain investment accounts to describe the rate paid on deposits or investments.
• Compounding: Like the interest rate, it does not account for the compounding frequency.

APY (Annual Percentage Yield)

• Definition: APY reflects the total amount of interest earned on an account in a year, accounting for the effect of compounding interest.
• Compounding: It includes the effects of compounding interest. Which means it shows the real return on investment or savings over a year.
• Formula: The formula for APY is:

  APY = (1 + r/n)^n - 1

  Where r is the nominal interest rate, and n is the number of compounding periods per year.

Dividend Rate vs APY Example

Interest Rate/Dividend Rate: If a savings account offers a 5% interest rate compounded monthly, the nominal rate is 5%.

APY: When considering the monthly compounding, the same account will have an APY slightly higher than 5% because the interest earned each month also earns interest in subsequent months.

Key Differences

• Compounding Effect: APY incorporates the effect of compounding, whereas the nominal interest/dividend rate does not.
• True Earnings: APY provides a clearer picture of the actual annual earnings from an account or investment.
• Comparison: APY is a better metric for comparing different financial products as it standardizes the impact of compounding across different offers.

In summary, while the interest rate or dividend rate gives you an idea of the annual rate of return without compounding, the APY gives you the actual yearly return, considering the compounding of interest.

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 2.

To make a mobile deposit to your PDCU account using your smartphone, log into your MyPDCU app or the MyPDCU online banking portal and click on “Deposit.” Enter the check amount, click “Continue,” and select which of your accounts (if you have more than one) you want to make the deposit to. Sign your check, write “For Mobile Deposit Only at PDCU”, and include your PDCU account number. Follow the instructions provided in the app to capture an image of the front and back of the check.

Anything deposited over $2,500 will be reviewed by the credit union and will not show in your account right away. Check limit is $25,000. All deposits are subject to holds.

Securely store the original check for 7 business days after the deposit. Verify you check has been credited to your account. After 7 business days, destroy the original check by marking it “VOID” and shredding it.

YES! Depending on your browser, once you have opened your statement you may see icons on the top corner for downloading and printing.  You may also right click on your mouse and choose ‘save as’ or ‘print’.

We suggest using a password only you would know. Do not save any passwords on devices that are not yours. Use facial recognition or thumbprint recognition on your private devices.

When preparing your tax return, you are asked to include the amounts of interest earned on your accounts. If your account earned $10 or more in the calendar year, a 1099-INT will be issued. 1099-INTs are typically mailed to you by the end of January in the new year. You can also access this in online banking; click the E-statement tab and choose ‘Tax statements.’

There is a $1 per month charge for mailed statements unless you are under 23 years of age or are a Senior Power Pack member.

PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!

Yes, many borrowers choose to refinance their ARM to a fixed-rate mortgage before the adjustable period begins to lock in a stable interest rate and predictable monthly payments.

Refinance

Consider your financial situation, how long you plan to stay in the home, and your risk tolerance for potential interest rate changes. ARMs can be a good choice if you plan to sell or refinance before the adjustable period begins or expect interest rates to remain stable or decline.

Some ARMs may have prepayment penalties, but People Driven Credit Union does not. You can refinance or pay off your Adjustable Rate Mortgage with PDCU early without any prepayment penalties.

Yes, ARMs often have caps that limit how much the interest rate can increase at each adjustment period and over the life of the loan. These caps provide some protection against large payment increases.

ARM interest rates adjust based on a specific index (such as the Treasury index) plus a margin set by the lender. When the index rate changes, the interest rate on your loan adjusts accordingly.

The main risk with an ARM loan is that your monthly payments can increase if interest rates rise. Understanding the potential for payment changes is important to ensure that you can afford higher payments if the rate adjusts upward.

ARMs typically offer lower initial interest rates compared to fixed-rate mortgages, which can lead to lower initial monthly payments. This can be beneficial if you plan to sell or refinance before the adjustable period begins.

The initial period is when the interest rate on an ARM is fixed. After this period, the rate adjusts at regular intervals. For example, a 7/1 ARM has a fixed rate for the first seven years and then adjusts once every 12 months.

ARMs are often described with two numbers, such as 5/5, 7/1, or 10/1. The first number indicates the initial fixed-rate period (in years), and the second number indicates how often the rate will adjust after the initial period (in years).

Unlike a fixed-rate mortgage, where the interest rate remains constant throughout the loan term, an Adjustable Rate Mortgage has an interest rate that adjusts periodically. This means your monthly payments can increase or decrease over time based on changes in the interest rate.

Absolutely. We offer financing options for both new and pre-owned ATVs. Terms and rates may vary based on the vehicle’s condition and age.

Yes, our pre-approval process lets you know your borrowing power before you start shopping for your perfect ATV.

Our ATV loans cover a variety of all-terrain vehicles designed to enhance your off-road adventures, including, ATVs, UTVs (Utility Task Vehicles), side-by-sides (sxs) four-wheelers, quad bikes, recreational off-highway vehicles (ROVs), and multipurpose off-highway utility vehicle (MOHUV).

Have something in mind and wondering if PDCU will finance it? Call us as 248-463-4100.

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Interest rates vary based on factors like your credit score, loan term, and the age of the vehicle or watercraft. People Driven Credit Union offers competitive rates to make financing accessible and affordable for our members. Call 248-263-4100 to speak with a PDCU loan officer about the loan rate you can expect.

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, login to the MyPDCU Online Portal or use the MyPDCU app, and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Call iTalk (telephone teller) at 844-700-7328 to make your payment. Select Option 2 to make a payment.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

Your credit score plays a big role in determining your loan’s interest rate and terms. Borrowers with higher credit scores typically qualify for lower interest rates, while those with lower credit scores may face higher rates.

• New auto loans apply to brand-new cars, trucks, vans, and vehicles five years old or newer. They often have lower interest rates because new cars typically have better collateral value.
• Used auto loans apply to pre-owned vehicles older than five years; interest rates may be slightly higher since used cars have less value over time.

An auto loan is a type of financing that allows you to borrow money to purchase a vehicle. The loan is secured by the vehicle itself, meaning the lender can repossess the vehicle if you fail to repay the loan.

Missing a payment can result in late fees and negatively affect your credit score. Repeated missed payments may lead to vehicle repossession. It’s important to contact People Driven Credit Union as soon as possible if you anticipate any issues making payments on your loan from PDCU.

A down payment isn’t always required, but it’s generally a smart move. Putting money down reduces the amount you’ll need to borrow, which can lower your monthly payments and reduce the total interest paid over the life of the loan. At People Driven Credit Union, we offer 100% financing for new cars (5 years old or newer). For used cars (older than 5 years), we’ll finance up to 80% of the vehicle’s value (LTV).

• Auto loans: These are for purchasing a new or used vehicle.
• Auto refinancing: You can replace your current auto loan with a new one, typically to get a lower interest rate or change the loan term.

Term lengths for auto loans from People Driven Credit Union range from 12 months (1 year) to 96 months (9 years). The longer the term, the lower your monthly payments, but you may pay more in interest over the life of the loan.

To apply for an auto loan with People Driven Credit Union, you will need:

• A valid ID
• Proof of income (like pay stubs or tax returns)
• Employment information
• Vehicle details (if you’ve already chosen one – the VIN #)
• Proof of insurance

Yes, People Driven Credit Union offers pre-approval for auto loans. Pre-approval helps you understand how much you can afford and can give you leverage when negotiating with dealers.

You’ll generally need proof of income, a look at your credit history, and details about the watercraft you wish to finance. Our team is here to help every step of the way. For more information or personalized assistance, please contact a People Driven Credit Union representative at 248-263-4100.

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Yes, PDCU finances both new and pre-owned watercraft. Rates and terms may differ, so our team can help you find the best option based on your needs.

Absolutely. Our pre-approval process gives you a clear idea of your borrowing power before you start shopping, simplifying your purchasing journey.

Interest rates vary based on factors like your credit score, loan term, and the age of the vehicle or watercraft. People Driven Credit Union offers competitive rates to make financing accessible and affordable for our members. Call 248-263-4100 to speak with a PDCU loan officer about the loan rate you can expect.

You can finance a variety of recreational watercraft, including boats, jet skis, and wave runners. If it floats, People Driven Credit Union can probably finance it.

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

Cashback is earned instantly and visible in your CashBack+ account immediately after completing your purchase.

Yes, CashBack+ Pay is device-specific and provides enhanced security compared to traditional card transactions.

No, digital codes purchased through CashBack+ never expire.

No, CashBack+ is free for all PDCU members.

Redeem your cashback anytime by transferring it directly to your checking or savings account or by using it for additional purchases.

An Educational IRA Certificate, commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

Key Features:

• Tax Advantages: Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
• Fixed Interest Rate: Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
• Term Options: These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for the funds needed for educational expenses.
• Contribution Limits: The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
• Age Limits: Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30.
• Qualified Expenses: Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and sometimes, room and board for students enrolled at least half-time.
• Transferability: If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

Benefits of an Educational IRA Certificate:

• Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
• Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
• Wide Range of Uses: Funds can be used for various educational expenses, covering primary, secondary, and higher education.

Considerations:

• Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
• Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
• Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

Educational IRA Certificates are Suitable For:

• Parents and Guardians: Those looking to save for their child’s educational expenses in a tax-advantaged way.
• Family Members: Relatives who want to contribute to a child’s education savings.
• Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

An Educational IRA Certificate is an excellent tool for families planning future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

Key Features:

• Higher Interest Rates: Higher interest rates compared to regular savings accounts. The rates are typically variable and can change based on market conditions.
• Tax Advantages: Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
• Flexible Terms: These certificates may offer various term lengths, allowing you to choose a term that aligns with your retirement planning.
• Liquidity and Access: Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
• Stable Investment: They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
• Contribution Limits: The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs set by the IRS.
• Insurance: Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

Benefits of a Money Market IRA Certificate:

• Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
• Higher Returns: Often offer higher returns than regular savings accounts while maintaining a low-risk level.
• Flexibility: Typically more flexible than traditional CDs, some allowing limited withdrawals.
• Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

Considerations:

• Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
• Contribution Limits: Be mindful of the annual contribution limits the IRS sets.
• Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

Money Market IRA Certificates Are Suitable For:

• Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
• Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
• Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

Key Features of a Traditional IRA Certificate:

1. Tax-Deferred Growth:
   • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
   • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
2. Fixed Interest Rate:
   • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
3. Terms and Maturity:
   • These certificates usually have specific terms ranging from a few months to several years.
   • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
4. Early Withdrawal Penalties:
   • Withdrawing funds before the certificate matures may incur penalties.
   • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
5. Contribution Limits:
   • The annual contribution limits are the same as for IRAs, set by the IRS.
6. Required Minimum Distributions (RMDs):
   • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

Benefits:

• Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
• Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
• Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

Considerations:

• Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
• Contribution Limits: Stay within the annual contribution limits set by the IRS.
• RMDs: Plan for required minimum distributions starting at age 73.

Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

Here’s a breakdown of the features of a a Roth IRA Certificate:

• Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won’t get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
• Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
• Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
• Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
• Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
• Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
• Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
• Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

A Certificate of Deposit is a secure and reliable savings tool that offers higher interest rates in exchange for committing your funds for a fixed period. It’s an excellent option for those looking to achieve specific financial goals with minimal risk.

Key Features of a Certificate of Deposit (CD):

• Fixed Term: CDs have a specified term or maturity date, which can range from a few months to several years. Common terms are 6 months, 1 year, 2 years, or 5 years.
• Interest Rate: CDs typically offer a higher interest rate than regular savings accounts. The rate is fixed for the duration of the term, providing a predictable return on investment.
• Minimum Deposit: Many CDs require a minimum deposit to open, which can vary depending on the financial institution and the specific CD product.
• Early Withdrawal Penalties: Withdrawing funds from a CD before it matures usually incurs a penalty, which can reduce or negate the interest earned. Some CDs offer more flexible terms with lower penalties or no penalties for early withdrawal, but these often come with lower interest rates.
• FDIC/NCUA Insurance: CDs from banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), and CDs from credit unions are insured by the National Credit Union Administration (NCUA), up to the maximum limit allowed by law.

A CD (Certificate of Deposit) Ladder is an investment strategy that involves dividing a sum of money into multiple CDs with different maturity dates. The primary goal of this approach is to balance the benefits of earning higher interest rates on longer-term CDs while maintaining liquidity by having funds become available periodically. Here’s how it works:

How a CD Ladder Works

1. Divide Your Investment:
   • You start by dividing your total investment into equal parts. For example, if you have $10,000, you might divide it into five parts of $2,000 each.
2. Purchase CDs with Staggered Maturities:
   • Invest each portion in CDs with different maturities. For instance, you could buy a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD.
3. Reinvest as CDs Mature:
   • As each CD matures, you reinvest the principal (and interest, if desired) into a new CD with the longest term in your ladder. For example, when the 1-year CD matures, you would reinvest that amount into a new 5-year CD and continue this process as each CD matures.

Benefits of a CD Ladder

1. Higher Interest Rates:
   • Longer-term CDs typically offer higher interest rates compared to short-term CDs. By using a ladder strategy, you can take advantage of these higher rates for at least a portion of your investment.
2. Regular Access to Funds:
   • A portion of your investment will mature at regular intervals (e.g., every year), giving you periodic access to your money without penalty. This can be useful for meeting short-term financial needs or taking advantage of new investment opportunities.
3. Reduced Interest Rate Risk:
   • By spreading your investment across CDs with varying maturities, you reduce the risk of being locked into a low-interest rate for an extended period if rates rise. As each CD matures, you can reinvest at the current rates, potentially benefiting from higher interest rates.
4. Predictable Returns:
   • CDs are generally considered low-risk investments with fixed interest rates, providing predictable returns. This makes a CD ladder a stable and reliable investment strategy.

Example of a CD Ladder

Let’s say you have $10,000 to invest and you set up a 5-year CD ladder:

• Year 1:
  • Invest $2,000 in a 1-year CD
  • Invest $2,000 in a 2-year CD
  • Invest $2,000 in a 3-year CD
  • Invest $2,000 in a 4-year CD
  • Invest $2,000 in a 5-year CD
• Year 2:
  • The 1-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature according to their original terms.
• Year 3:
  • The 2-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 4:
  • The 3-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 5:
  • The 4-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The 5-year CD continues to mature.

By the end of Year 5, you have a ladder of 5-year CDs maturing every year, providing you with a regular income stream and the opportunity to reinvest at current interest rates.

A CD Ladder is an effective strategy to maximize returns while maintaining liquidity and reducing interest rate risk. It’s an excellent choice for conservative investors looking for a predictable and stable way to grow their savings. At People Driven Credit Union, we offer competitive rates and flexible terms to help you build a CD ladder that meets your financial goals. Contact us today to learn more about how you can get started with a CD Ladder and take control of your financial future.

Set Up a CD Ladder

You will receive a notice in the mail 30 days before the maturity date of your CD.

Once the initial deposit has been made funds cannot be added to the CD until maturity.  Once the CD matures you may add funds if you wish to renew the CD.

Yes.  The penalty for withdrawing from/closing the CD will be based on the interest earned on the account.

Although a CD is not necessarily liquid, it is considered one of the safest investments available. The longer CD you have, the higher the rate is going to be. There are no fees for the Certificate of Deposit, and you earn interest based on the balance in the CD.

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

For wiring funds to a People Driven Credit Union account:

Wire to:

• Alloya Corporate Federal Credit Union
  26555 Evergreen
  Southfield, MI 48076
  ABA number: 2724-78075

Credit:

• People Driven Credit Union
  24333 Lahser
  Southfield, MI 48033
  Account Number: 2724-84988

Final Credit Member Name:

• Member’s PDCU Account Number
  Member’s Address
  Account member wants funds deposited into (for example, Savings or Checking)

PDCU’s checking accounts do not require a minimum balance and have no monthly maintenance fees!

To make a mobile deposit to your PDCU account using your smartphone, log into your MyPDCU app or the MyPDCU online banking portal and click on “Deposit.” Enter the check amount, click “Continue,” and select which of your accounts (if you have more than one) you want to make the deposit to. Sign your check, write “For Mobile Deposit Only at PDCU”, and include your PDCU account number. Follow the instructions provided in the app to capture an image of the front and back of the check.

Anything deposited over $2,500 will be reviewed by the credit union and will not show in your account right away. Check limit is $25,000. All deposits are subject to holds.

Securely store the original check for 7 business days after the deposit. Verify you check has been credited to your account. After 7 business days, destroy the original check by marking it “VOID” and shredding it.

To minimize the risk of overdrafts, we recommend checking your account balance daily. Pay transactions only when sufficient funds are available, and avoid assuming that all items will clear your account immediately. Additionally, consider utilizing e-alerts to receive notifications when your balance is running low. For more information, please refer to the E-Alerts section.

Please log into the online banking site.  Under the e-statements tab you will see ‘order checks’.  Please click that and you will be directed to Harland Clarke to compete your order.  Prices vary by style.

PDCU offers a few types of checking accounts, view all our Checking Account Options.

If construction costs exceed the loan amount, you will be responsible for covering the additional expenses. It’s crucial to have a detailed budget and contingency plan to avoid running short on funds during construction.

Due to the increased risk involved, interest rates for construction loans are generally higher than for traditional mortgages. Rates can be variable or fixed and are determined based on your credit profile, loan amount, and market conditions.

Eligibility requirements can vary but typically include a good credit score, a stable income, a detailed construction plan, and a contract with a licensed builder. Some lenders may also require a down payment.

Construction loans can be used to cover the costs associated with building a new home. This includes land purchase (if not already owned), construction materials, labor, permits, and other related expenses.

A one-time close construction loan combines your construction financing and permanent mortgage into a single loan. You only have to go through the closing process once, saving you time and money on additional closing costs and paperwork.

Construction loans provide funds in stages as your home is being built. These funds are disbursed to your builder based on a pre-agreed schedule, often called “draws.” During construction, you typically make interest-only payments on the disbursed amounts. Once construction is complete, the loan transitions to a permanent mortgage, and you start making regular mortgage payments.

A construction mortgage loan is a type of loan specifically designed to finance the construction of a new home. It typically involves two phases: the construction phase, where the loan funds the building process, and the permanent mortgage phase, where the loan converts into a standard mortgage upon completion of the home.

• Copy of your driver’s license
• Last 2 years W2’s
• Most recent 30 days span of paystubs
• Last 2 years Federal Tax Returns
• Most recent two months bank statements, all pages
• Contact information for homeowner’s insurance agent

You may give us a call at 248-263-4100 to speak with the loan department.

Contactless cards, offer several benefits over traditional cards that require a physical swipe or insertion into a card reader. Some of these benefits include:

1. Speed: Contactless cards can be scanned quickly and easily, making transactions faster and more efficient. This can be especially useful in high-traffic retail environments where lines are lengthy.
2. Convenience: Contactless cards do not require a physical swipe or insertion, which can be particularly useful for people on the go, such as commuters or people running errands.
3. Increased security: Contactless cards can reduce the risk of fraud because they use near-field communication (NFC) technology, which creates a secure connection between the card and the card reader. Additionally, the risk of card skimming is lowered because a contactless card doesn’t leave the cardholder’s possession.
4. Reduced contact: Because contactless cards can be scanned without physical contact, they can help reduce the spread of germs and bacteria, which is especially important during a pandemic.
5. Adoption: Contactless payments are becoming more widely adopted; it may be more convenient for cardholders to have contactless cards as many merchants are starting to accept them.

Contactless card transactions are generally faster and more convenient than traditional card transactions.

WRITTEN STATEMENT OF UNAUTHORIZED DEBIT

In some cases we may restrict a card from being capable of completing an ATM deposit.  Please give us a call at 844-700-7328 if you are having trouble making a deposit.

Please give us a call at 844-700-7328 or visit a branch to order a new card.  Cards take up to 10 business days to arrive in the mail.

YES!  Your card may get declined if you are out of state or out of the country.  Please give us a call during business hours at 844-700-7328 and speak with a rep or coming into a branch.

You may also log into online banking and send the credit union a secure message!  Please let us know where you will be traveling, dates leaving and returning and a good phone number.

Please give us a call during business hours at 844-700-7328 and speak with a rep or come into a branch.

Please call 866-762-0558 from your primary phone number on your membership to activate your card.

To report a lost or stolen card during our business hours please call 844-700-7328 and a People Driven rep shall assist.  After hours please call 888-241-2510. In the event you need to call the after hours number, please give us a call during our office hours the following business day so we may place an order of a new card.

A Fannie Mae Fixed Rate Mortgage Loan is a home loan with a fixed interest rate that remains the same throughout the life of the loan. It is backed by Fannie Mae and offers predictable monthly payments, making it a popular choice for homebuyers seeking stability and long-term planning.

Eligibility for a Fannie Mae Fixed Rate Mortgage Loan typically requires a good credit score, a stable income, and a manageable level of debt. Specific eligibility requirements can vary, so it’s best to contact People Driven Credit Union for detailed information.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

Down payment requirements for a Fannie Mae Fixed Rate Mortgage Loan can vary, but typically range from 3% to 20% of the home’s purchase price. Lower down payments may require private mortgage insurance (PMI).

The minimum credit score for a Fannie Mae Fixed Rate Mortgage Loan is usually around 620. However, higher credit scores can help you qualify for better interest rates and terms.

What Is the Fannie Mae Home Loan Program?

The Fannie Mae home loan program helps make homeownership more accessible and affordable for borrowers in the United States. Fannie Mae, a government-sponsored enterprise, purchases and guarantees mortgages from lenders, allowing them to offer more competitive loan options. Fannie Mae loans are typically conventional loans that must meet certain criteria, including loan limits set by the Federal Housing Finance Agency (FHFA). These loans can be used to purchase or refinance primary residences, second homes, and certain investment properties, making them a versatile choice for many buyers.

Can I Qualify for a Fannie Mae Loan With a Low Credit Score?

For specialized programs like the HomeReady® mortgage, the minimum score remains 620, but stronger credit may reduce your interest rate and private mortgage insurance (PMI) costs. Lenders also consider other factors, such as your debt-to-income (DTI) ratio, employment history, and down payment size. If your credit score is below the required threshold, improving it by paying down debt, making timely payments, and limiting new credit inquiries can increase your chances of qualifying for a Fannie Mae-backed mortgage.

At PDCU, our knowledgeable mortgage team is here to assist you through every step of the home-buying process, ensuring you find the right loan to meet your needs. As a member-owned credit union, we put your best interests first, offering personalized service and expert guidance.

Eligible properties include single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

Common loan terms for Fannie Mae Fixed Rate Mortgages are 15, 20, and 30 years. The term you choose will affect your monthly payments and the total interest paid over the life of the loan.

• Predictable Monthly Payments: Your interest rate and monthly payments remain the same throughout the life of the loan.
• Stability: Fixed rates provide financial stability and simplify long-term budgeting.
• Flexibility: Available for various property types and occupancy situations.

Yes, refinancing with a Fannie Mae Fixed Rate Mortgage can help you secure a lower interest rate, reduce your monthly payments, or change your loan term to better suit your financial goals.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

• Copy of your driver’s license
• Last 2 years W2’s
• Most recent 30 days span of paystubs
• Last 2 years Federal Tax Returns
• Most recent two months bank statements, all pages
• Contact information for homeowner’s insurance agent

An FHA Mortgage Loan is a home loan insured by the Federal Housing Administration (FHA), designed to help low-to-moderate-income borrowers qualify for financing. These loans are particularly beneficial for first-time homebuyers or those with lower credit scores.

• Lower Down Payment: FHA loans allow for a down payment as low as 3.5% of the purchase price.
• Flexible Credit Requirements: Borrowers with lower credit scores may still qualify for an FHA loan.
• Competitive Interest Rates: FHA loans often offer lower interest rates compared to conventional loans.
• Assumable Loan: The loan can be transferred to a new buyer if you decide to sell your home.
• Refinancing Options: Streamlined refinancing options are available to reduce your interest rate or adjust your loan term.

Eligibility for an FHA loan generally depends on your credit score, income, debt-to-income ratio, and the amount of down payment you can make. FHA loans are aimed at helping low-to-moderate-income borrowers and those with less-than-perfect credit.

The minimum credit score for an FHA loan is typically 580 with a 3.5% down payment. Borrowers with credit scores between 500 and 579 may still qualify with a higher down payment of 10%.

The amount you can borrow with an FHA loan depends on the FHA loan limits in your area, which vary by county. These limits are updated annually by the FHA.

The minimum down payment for an FHA loan is 3.5% of the purchase price for borrowers with a credit score of 580 or higher. Borrowers with credit scores between 500 and 579 are required to make a down payment of at least 10%.

Yes, the FHA offers a loan program called the FHA 203(k) Rehabilitation Loan, which allows you to finance both the purchase of a home and the cost of its repairs through a single mortgage.

FHA loans can be used to finance a variety of properties, including single-family homes, multi-family properties (up to four units), condos, and certain manufactured homes.

In addition to the down payment, FHA loans require mortgage insurance premiums (MIP). There is an upfront MIP, typically 1.75% of the loan amount, and an annual MIP, which is paid monthly and varies based on the loan term and amount.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

A Freddie Mac Fixed Rate Mortgage Loan is a home loan with an interest rate that remains constant throughout the life of the loan. It is backed by Freddie Mac and provides borrowers with predictable monthly payments, making it easier to budget and plan for the future.

Eligibility for a Freddie Mac Fixed Rate Mortgage Loan typically includes having a stable income, a good credit score, and a manageable debt-to-income ratio. Specific eligibility criteria can vary, so it’s best to contact People Driven Credit Union for personalized information.

Down payment requirements can vary, but typically range from 3% to 20% of the home’s purchase price. Lower down payments may require private mortgage insurance (PMI).

The minimum credit score required is generally around 620, but higher credit scores can help you qualify for better interest rates and loan terms.

Eligible properties include single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

Common loan terms include 15, 20, and 30 years. The term you choose will affect your monthly payments and the total interest paid over the life of the loan.

• Predictable Monthly Payments: Your interest rate and monthly payments remain the same throughout the life of the loan.
• Stability: Fixed rates provide financial stability and simplify long-term budgeting.
• Flexibility: Available for various property types and occupancy situations.

Yes, refinancing with a Freddie Mac Fixed Rate Mortgage can help you secure a lower interest rate, reduce your monthly payments, or change your loan term to better suit your financial goals.

PMI is insurance that protects the lender if you default on your mortgage. It is typically required if your down payment is less than 20% of the home’s purchase price. PMI can be canceled once you have enough equity in your home.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

To request a skip-a-pay on a People Driven Credit Union mortgage, please get in touch with your mortgage processor, who is currently servicing the mortgage payments.  If your mortgage application was processed by:

• Member First Mortgage call (866) 898-1818 OR contact a Payment Solution Specialist (248) 263-4100
• TowneMortgage (formerly known as Americu) call (888) 778-9700
• Mortgage Center call (800) 353-4449

Contact Us

Who do I contact about signing a loan that is in process?

If you are already working with a Lending Specialist, they can walk you through signing your documents electronically. This can be done from within online banking. You can also reach out to us at (248)263-4100, and one of our specialists will be able to assist you.

Who do I contact about card disputes and fraud?

Please call our Member Center at (248) 263-4100 and speak with a team member to dispute any charges or report fraudulent activity.

How do I get a replacement debit or credit card?

Call us at (248) 263-4100, and a team member will work with you to get a replacement card sent directly to you. We have recently added debit card controls inside our phone app.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 2.

Visit Love My Credit Union Rewards to view all your perks such as discounts from our partners, and view all the benefits available to members of People Driven Credit Union.

Download the official People Driven Credit Union account and prize entry rules

An IRA CD works similarly to a regular CD. Your initial investment earns a fixed interest rate over a set timeframe and renews automatically. The more money you put in, the higher your rate will be, which means a more significant return on your investment. The main difference is that, unlike a regular CD, an IRA CD offers certain tax advantages associated with a traditional or Roth IRA.

You will receive a notice in the mail 30 days before the maturity date of your CD.

Loan-to-Value Ratio (LTV) is a measure of the amount of the loan compared to the appraised value of the property. It is calculated by dividing the loan amount by the appraised value or purchase price of the property, whichever is lower, and is expressed as a percentage.

How is LTV Calculated?

The formula to calculate LTV is:

Why is LTV Important?

• Risk Assessment: Lenders use the LTV ratio to assess risk. A lower LTV ratio means less risk for the lender because the borrower has more equity in the property.
• Interest Rates: Higher LTV ratios often result in higher interest rates because the loan is considered riskier.
• Loan Approval: Some loans have maximum LTV ratios. For instance, conventional loans typically require an LTV of 80% or less to avoid private mortgage insurance (PMI).
• Borrower Equity: The LTV ratio gives borrowers an idea of how much equity they have in their property. Higher equity can lead to better loan terms.

Typical LTV Ratios

• Conventional Loans: Generally, lenders prefer an LTV of 80% or lower.
• FHA Loans: These can allow for higher LTV ratios, often up to 96.5%.
• VA Loans: These can have LTV ratios up to 100%.

Impact on Home Equity Loans and HELOCs

For Home Equity Loans and Home Equity Lines of Credit (HELOCs), lenders often require a combined loan-to-value (CLTV) ratio, which includes the first mortgage and the home equity loan or line of credit. A typical CLTV requirement might be 85% or lower.

Understanding the LTV ratio is crucial for both lenders and borrowers, as it affects loan approval, terms, and the overall cost of borrowing.

If you cannot repay your HELOC according to the terms, you risk foreclosure on your home, as the property is collateral for the loan. It’s essential to borrow responsibly and within your means.

In many cases, the interest paid on a HELOC may be tax-deductible if the funds are used for home improvements or other qualifying expenses. Consult with a tax advisor to understand your specific tax implications.

Yes, there may be fees associated with a HELOC, such as an application fee, annual fee, closing costs, or early closure fee. It’s essential to review the terms and conditions of the HELOC agreement to understand the fees involved.

The amount you can borrow with a HELOC depends on factors such as the equity in your home, your creditworthiness, and the lender’s policies. Typically, you can borrow up to a certain percentage (e.g., 80-90%) of your home’s appraised value minus any outstanding mortgage balance.

HELOC funds can be used for various purposes, such as home improvements, debt consolidation, education expenses, major purchases, or emergencies. It provides flexibility to access funds when needed.

The interest rate on a HELOC is typically variable and may be based on an index, such as the prime rate, plus a margin determined by your creditworthiness. This means your payments can fluctuate based on market conditions.

The draw period is the initial period (typically 5-10 years) during which you can access funds from your HELOC and make interest-only payments. After the draw period ends, you enter the repayment period, in which you pay back both principal and interest.

Unlike a home equity loan, which provides a lump sum of money with fixed payments, a HELOC offers a revolving credit line with a draw period during which you can borrow and repay funds as needed. You only pay interest on the amount you borrow.

A HELOC is a revolving line of credit that uses your home as collateral. It allows you to borrow funds as needed, up to a predetermined credit limit, using the equity you’ve built in your home.

Loan-to-Value Ratio (LTV) is a measure of the amount of the loan compared to the appraised value of the property. It is calculated by dividing the loan amount by the appraised value or purchase price of the property, whichever is lower, and is expressed as a percentage.

How is LTV Calculated?

The formula to calculate LTV is:

Why is LTV Important?

• Risk Assessment: Lenders use the LTV ratio to assess risk. A lower LTV ratio means less risk for the lender because the borrower has more equity in the property.
• Interest Rates: Higher LTV ratios often result in higher interest rates because the loan is considered riskier.
• Loan Approval: Some loans have maximum LTV ratios. For instance, conventional loans typically require an LTV of 80% or less to avoid private mortgage insurance (PMI).
• Borrower Equity: The LTV ratio gives borrowers an idea of how much equity they have in their property. Higher equity can lead to better loan terms.

Typical LTV Ratios

• Conventional Loans: Generally, lenders prefer an LTV of 80% or lower.
• FHA Loans: These can allow for higher LTV ratios, often up to 96.5%.
• VA Loans: These can have LTV ratios up to 100%.

Impact on Home Equity Loans and HELOCs

For Home Equity Loans and Home Equity Lines of Credit (HELOCs), lenders often require a combined loan-to-value (CLTV) ratio, which includes the first mortgage and the home equity loan or line of credit. A typical CLTV requirement might be 85% or lower.

Understanding the LTV ratio is crucial for both lenders and borrowers, as it affects loan approval, terms, and the overall cost of borrowing.

A Second Mortgage is a loan that is secured by your home in addition to your primary mortgage. It allows you to borrow against the equity you’ve built up in your home.

A Fixed Term Home Equity Loan provides you with a lump sum of money, which you repay over a fixed period with a set interest rate. This makes your monthly payments predictable.

You can use a Home Equity Loan for various purposes, including home improvements, debt consolidation, education expenses, medical bills, or major purchases.

• Predictable Payments: Fixed monthly payments make budgeting easier.
• Lower Interest Rates: Generally lower than unsecured loans due to the home serving as collateral.
• Lump Sum: Access to a large amount of money upfront.

• Foreclosure: If you default on the loan, the lender can foreclose on your home.
• Increased Debt: Taking on a second mortgage increases your overall debt load.

The amount you can borrow is typically determined by your home’s equity, which is the difference between your home’s current market value and the balance of your first mortgage.

Eligibility requirements for home equity loans include having sufficient home equity, a good credit score, a stable income, and a favorable debt-to-income ratio.

Interest on a Fixed Term Home Equity Loan is typically calculated as a fixed percentage of the loan amount, and it remains constant throughout the life of the loan.

Interest on a Home Equity Loan may be tax-deductible if the loan is used for home improvements, but it’s best to consult a tax advisor for specific guidance.

A Home Possible® Mortgage Loan is a flexible and affordable loan program from Freddie Mac designed to help low-to-moderate income borrowers and first-time homebuyers achieve homeownership. It features low down payment requirements and flexible credit terms.

Home Possible® Mortgage Loans are available to creditworthy low-to-moderate income borrowers. Income limits typically apply, and your income must generally be at or below 80% of the area median income (AMI) for the location of the property. The program is open to both first-time and repeat homebuyers.

The minimum down payment required for a Home Possible® Mortgage is as low as 3% of the home’s purchase price. This low down payment option makes it easier to afford a new home without a large upfront cost.

Yes, Home Possible® allows you to use gift funds from relatives, friends, or other eligible sources for your down payment and closing costs. Grants and down payment assistance programs can also be used.

Home Possible® Mortgages can be used to finance various types of properties, including single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

The minimum credit score required for a Home Possible® Mortgage is typically 620. However, having a higher credit score can improve your chances of qualifying and securing better interest rates.

Your debt-to-income ratio should generally not exceed 50%. This means that your total monthly debt payments, including your new mortgage, should be 50% or less of your gross monthly income.

Yes, Home Possible® requires first-time homebuyers to complete a homeownership education course from an approved provider, such as CreditSmart. This course helps prepare you for the responsibilities of homeownership and provides valuable financial insights.

Yes, Home Possible® offers refinancing options that can help you take advantage of lower interest rates and better loan terms.

Home Possible® offers numerous benefits, including low down payment options, flexible underwriting standards, competitive interest rates, and the ability to use various sources of funds for down payments. It also promotes financial literacy through required homeownership education.

Maximize your savings with potential tax deductions on the interest paid on your Home Renovation Loan. Consult with a tax advisor to explore the tax benefits available to you.

When applying for a Home Renovation Loan, prepare for your renovation journey by gathering proof of income, identification, and details about your planned renovation project.

Yes, you can conveniently apply for a Home Renovation Loan online through our website or by visiting one of our branches.

With our streamlined application process, approval for your Home Renovation Loan is fast and efficient, so you can start your renovation project without delay.

Enjoy flexible repayment terms of up to 84 months (7 years) with our Home Renovation Loan, giving you ample time to repay without straining your budget.

At People Driven Credit Union, you can secure up to $30,000 with our Home Renovation Loan, providing you with the financial flexibility to tackle projects big and small.

With a Home Renovation Loan, the possibilities are endless. You can revamp your kitchen, refresh your bathroom, upgrade your flooring, enhance your outdoor space, or even invest in energy-efficient upgrades to lower your utility bills.

You can use a Home Renovation Loan to fund a variety of home improvement projects, including:

• Kitchen or bathroom remodeling
• Flooring replacement
• Roof repairs or replacement
• HVAC system upgrades
• Painting and cosmetic enhancements
• Deck or patio installation
• Energy-efficient upgrades (e.g., new windows or insulation)

A Home Renovation Loan is the key to transforming your home into your dream space. Tailored specifically for home improvement projects, this loan allows you to access a lump sum upfront to bring your renovation plans to life.

You may give us a call at 248-263-4100 to speak with the loan department.

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

A HomeReady® Mortgage Loan is a flexible, affordable loan program from Fannie Mae designed to help low-to-moderate income borrowers and first-time homebuyers achieve homeownership. It features low down payment requirements and flexible underwriting standards to make buying a home more accessible.

HomeReady® Mortgage Loans are available to creditworthy low-to-moderate income borrowers. Income limits typically apply, and your income must generally be at or below 80% of the area median income (AMI) for the location of the property. The program is open to both first-time and repeat homebuyers.

The minimum down payment required for a HomeReady® Mortgage is as low as 3% of the home’s purchase price. This low down payment option makes it easier to afford a new home without a large upfront cost.

Yes, HomeReady® allows you to use gift funds from relatives, friends, or other eligible sources for your down payment and closing costs. Grants and down payment assistance programs can also be used.

HomeReady® Mortgages can be used to finance various types of properties, including single-family homes, condominiums, and multi-unit properties (up to four units). The property must be used as your primary residence.

The minimum credit score required for a HomeReady® Mortgage is typically 620. However, having a higher credit score can improve your chances of qualifying and securing better interest rates.

Yes, HomeReady® requires first-time homebuyers to complete a homeownership education course from an approved provider, such as Framework. This course helps prepare you for the responsibilities of homeownership and provides valuable financial insights.

Yes, HomeReady® offers refinancing options that can help you take advantage of lower interest rates and better loan terms.

Who Can Qualify for a HomeReady® Mortgage?

The HomeReady® mortgage, offered through Fannie Mae, is designed to make homeownership more accessible for low- to moderate-income borrowers. This program allows for down payments as low as 3% and offers flexible income sources, including contributions from household members who aren’t on the loan. First-time and repeat homebuyers can qualify, and HomeReady® mortgages are available for primary residences. To be eligible, borrowers typically need a minimum credit score of 620 and must complete an approved homeownership education course if they are first-time buyers.

Using a HomeReady Mortgage to Refinance Your Existing Loan

The HomeReady® program isn’t just for purchasing homes—it also offers an opportunity for borrowers to refinance their existing mortgages. Eligible homeowners can use a HomeReady® refinance to secure a lower interest rate, reduce monthly payments, or change loan terms. Like the purchase option, the refinance program allows for flexible income qualifications and may help borrowers who have built up equity in their homes but need a more affordable loan structure. Refinancing through HomeReady® can be especially beneficial for homeowners looking to consolidate debt or transition from an adjustable-rate mortgage (ARM) to a more stable fixed-rate loan while taking advantage of the program’s competitive rates and reduced mortgage insurance premiums.

At PDCU, our knowledgeable Fannie Mae mortgage team is here to assist you through every step of the home-buying process, ensuring you find the right loan to meet your needs. As a member-owned credit union, we put your best interests first, offering personalized service and expert guidance.

Schedule an Appointment

Schedule an appointment at one of our branches for a variety of services, including opening new accounts or membership, getting assistance with card services like issuing a new debit card or applying for a credit card, and applying for loans or mortgages. We also offer support for online and mobile banking, IRA account services, and notary services. Book an appointment today for personalized, one-on-one assistance from our team.

Schedule an Appointment

HomeReady® offers numerous benefits, including low down payment options, flexible underwriting standards, competitive interest rates, and the ability to use various sources of funds for down payments. It also promotes financial literacy through required homeownership education.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

A Money Market Savings Account is a type of savings account that generally offers higher interest rates than regular savings accounts. It also has some checking account features, like limited check writing.

Money Market Accounts typically offer higher interest rates and allow for limited check writing or transfers, making them more flexible for larger balances than standard savings accounts.

At People Driven Credit Union, the Money Market Savings Account requires a minimum deposit of $1,000 to open.

Interest on a Money Market Account is calculated daily based on the account balance and is paid and compounded monthly, allowing your savings to grow faster.

Yes, federal regulations allow up to six (6) preauthorized withdrawals or transfers per statement cycle with a Money Market Account, including check writing and electronic transfers.

Yes, People Driven’s Money Market Savings Accounts allow for six (6) preauthorized transfers or withdrawals per statement cycle.

Yes, funds in Money Market Accounts at People Driven Credit Union are Federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

Fees may apply if minimum balance requirements are unmet or the number of allowable transactions is exceeded. For more details, refer to the fee schedule provided by People Driven Credit Union.

You can open a Money Market Savings Account by visiting People Driven Credit Union in person, filling out the forms online, or, if you’re a current PDCU member, using the MyPDCU app to open your account.

An IRA Variable Rate Savings Account is a retirement savings option that offers tax-advantaged growth with a flexible, variable interest rate. This account can be opened as a Traditional, Roth, or Educational IRA, depending on your tax and savings goals.

Educational IRA vs. 529

An Educational IRA, known as a Coverdell Education Savings Account (ESA), and a 529 Plan are both tax-advantaged savings options for educational expenses, but they differ in several important ways:

1. Contribution Limits

• Coverdell ESA: Annual contribution is capped at $2,000 per beneficiary.
• 529 Plan: Contribution limits are generally much higher, often exceeding $300,000, depending on the plan and state.

2. Use of Funds

• Coverdell ESA: Funds can be used for both K-12 education and college expenses, covering tuition, books, supplies, and even certain tutoring services.
• 529 Plan: Primarily designed for college expenses, but recent tax law changes allow up to $10,000 per year to be used for K-12 tuition.

3. Income Limitations

• Coverdell ESA: There are income restrictions for contributors. Individuals earning more than $110,000 (or couples earning more than $220,000) may not contribute.
• 529 Plan: No income restrictions apply to contributions, making it more accessible to a broader range of contributors.

4. Control and Investment Options

• Coverdell ESA: Offers more flexibility in investment choices, allowing account holders to choose from various stocks, bonds, or mutual funds.
• 529 Plan: Investment options are generally limited to a selection provided by the state or plan administrator, often with age-based portfolios that adjust risk over time.

5. Ownership and Control of Funds

• Coverdell ESA: If funds aren’t used for education, the account must be transferred to the child when they turn 30.
• 529 Plan: The account owner retains control over the funds indefinitely, and there’s no age limit for the beneficiary to use the funds.

6. Tax Benefits

• Both accounts grow tax-free, and qualified withdrawals for education expenses are also tax-free.

In summary, the Coverdell ESA offers flexibility in investment options and covers a broader range of K-12 expenses. At the same time, the 529 Plan has higher contribution limits and no income restrictions and is more commonly used for college savings.

The difference between the Dividend Rate and APY (Annual Percentage Yield) lies primarily in considering compounding. Here’s a breakdown:

Interest Rate

• Definition: The interest rate is the nominal rate at which interest is paid on the principal amount.
• Compounding: It does not account for how often interest is compounded. It is simply the rate without considering the effects of compounding within the period.
• Usage: Often quoted as an annual rate, but it can be applied over different compounding periods (monthly, quarterly, etc.).

Dividend Rate

• Definition: Similar to the interest rate, but typically used by credit unions or certain investment accounts to describe the rate paid on deposits or investments.
• Compounding: Like the interest rate, it does not account for the compounding frequency.

APY (Annual Percentage Yield)

• Definition: APY reflects the total amount of interest earned on an account in a year, accounting for the effect of compounding interest.
• Compounding: It includes the effects of compounding interest. Which means it shows the real return on investment or savings over a year.
• Formula: The formula for APY is:

  APY = (1 + r/n)^n - 1

  Where r is the nominal interest rate, and n is the number of compounding periods per year.

Dividend Rate vs APY Example

Interest Rate/Dividend Rate: If a savings account offers a 5% interest rate compounded monthly, the nominal rate is 5%.

APY: When considering the monthly compounding, the same account will have an APY slightly higher than 5% because the interest earned each month also earns interest in subsequent months.

Key Differences

• Compounding Effect: APY incorporates the effect of compounding, whereas the nominal interest/dividend rate does not.
• True Earnings: APY provides a clearer picture of the actual annual earnings from an account or investment.
• Comparison: APY is a better metric for comparing different financial products as it standardizes the impact of compounding across different offers.

In summary, while the interest rate or dividend rate gives you an idea of the annual rate of return without compounding, the APY gives you the actual yearly return, considering the compounding of interest.

An Educational IRA Certificate, commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

Key Features:

• Tax Advantages: Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
• Fixed Interest Rate: Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
• Term Options: These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for the funds needed for educational expenses.
• Contribution Limits: The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
• Age Limits: Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30.
• Qualified Expenses: Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and sometimes, room and board for students enrolled at least half-time.
• Transferability: If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

Benefits of an Educational IRA Certificate:

• Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
• Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
• Wide Range of Uses: Funds can be used for various educational expenses, covering primary, secondary, and higher education.

Considerations:

• Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
• Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
• Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

Educational IRA Certificates are Suitable For:

• Parents and Guardians: Those looking to save for their child’s educational expenses in a tax-advantaged way.
• Family Members: Relatives who want to contribute to a child’s education savings.
• Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

An Educational IRA Certificate is an excellent tool for families planning future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

Key Features:

• Higher Interest Rates: Higher interest rates compared to regular savings accounts. The rates are typically variable and can change based on market conditions.
• Tax Advantages: Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
• Flexible Terms: These certificates may offer various term lengths, allowing you to choose a term that aligns with your retirement planning.
• Liquidity and Access: Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
• Stable Investment: They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
• Contribution Limits: The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs set by the IRS.
• Insurance: Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

Benefits of a Money Market IRA Certificate:

• Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
• Higher Returns: Often offer higher returns than regular savings accounts while maintaining a low-risk level.
• Flexibility: Typically more flexible than traditional CDs, some allowing limited withdrawals.
• Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

Considerations:

• Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
• Contribution Limits: Be mindful of the annual contribution limits the IRS sets.
• Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

Money Market IRA Certificates Are Suitable For:

• Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
• Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
• Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

Key Features of a Traditional IRA Certificate:

1. Tax-Deferred Growth:
   • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
   • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
2. Fixed Interest Rate:
   • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
3. Terms and Maturity:
   • These certificates usually have specific terms ranging from a few months to several years.
   • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
4. Early Withdrawal Penalties:
   • Withdrawing funds before the certificate matures may incur penalties.
   • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
5. Contribution Limits:
   • The annual contribution limits are the same as for IRAs, set by the IRS.
6. Required Minimum Distributions (RMDs):
   • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

Benefits:

• Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
• Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
• Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

Considerations:

• Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
• Contribution Limits: Stay within the annual contribution limits set by the IRS.
• RMDs: Plan for required minimum distributions starting at age 73.

Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

Here’s a breakdown of the features of a a Roth IRA Certificate:

• Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won’t get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
• Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
• Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
• Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
• Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
• Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
• Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
• Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

A Certificate of Deposit is a secure and reliable savings tool that offers higher interest rates in exchange for committing your funds for a fixed period. It’s an excellent option for those looking to achieve specific financial goals with minimal risk.

Key Features of a Certificate of Deposit (CD):

• Fixed Term: CDs have a specified term or maturity date, which can range from a few months to several years. Common terms are 6 months, 1 year, 2 years, or 5 years.
• Interest Rate: CDs typically offer a higher interest rate than regular savings accounts. The rate is fixed for the duration of the term, providing a predictable return on investment.
• Minimum Deposit: Many CDs require a minimum deposit to open, which can vary depending on the financial institution and the specific CD product.
• Early Withdrawal Penalties: Withdrawing funds from a CD before it matures usually incurs a penalty, which can reduce or negate the interest earned. Some CDs offer more flexible terms with lower penalties or no penalties for early withdrawal, but these often come with lower interest rates.
• FDIC/NCUA Insurance: CDs from banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), and CDs from credit unions are insured by the National Credit Union Administration (NCUA), up to the maximum limit allowed by law.

A CD (Certificate of Deposit) Ladder is an investment strategy that involves dividing a sum of money into multiple CDs with different maturity dates. The primary goal of this approach is to balance the benefits of earning higher interest rates on longer-term CDs while maintaining liquidity by having funds become available periodically. Here’s how it works:

How a CD Ladder Works

1. Divide Your Investment:
   • You start by dividing your total investment into equal parts. For example, if you have $10,000, you might divide it into five parts of $2,000 each.
2. Purchase CDs with Staggered Maturities:
   • Invest each portion in CDs with different maturities. For instance, you could buy a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD.
3. Reinvest as CDs Mature:
   • As each CD matures, you reinvest the principal (and interest, if desired) into a new CD with the longest term in your ladder. For example, when the 1-year CD matures, you would reinvest that amount into a new 5-year CD and continue this process as each CD matures.

Benefits of a CD Ladder

1. Higher Interest Rates:
   • Longer-term CDs typically offer higher interest rates compared to short-term CDs. By using a ladder strategy, you can take advantage of these higher rates for at least a portion of your investment.
2. Regular Access to Funds:
   • A portion of your investment will mature at regular intervals (e.g., every year), giving you periodic access to your money without penalty. This can be useful for meeting short-term financial needs or taking advantage of new investment opportunities.
3. Reduced Interest Rate Risk:
   • By spreading your investment across CDs with varying maturities, you reduce the risk of being locked into a low-interest rate for an extended period if rates rise. As each CD matures, you can reinvest at the current rates, potentially benefiting from higher interest rates.
4. Predictable Returns:
   • CDs are generally considered low-risk investments with fixed interest rates, providing predictable returns. This makes a CD ladder a stable and reliable investment strategy.

Example of a CD Ladder

Let’s say you have $10,000 to invest and you set up a 5-year CD ladder:

• Year 1:
  • Invest $2,000 in a 1-year CD
  • Invest $2,000 in a 2-year CD
  • Invest $2,000 in a 3-year CD
  • Invest $2,000 in a 4-year CD
  • Invest $2,000 in a 5-year CD
• Year 2:
  • The 1-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature according to their original terms.
• Year 3:
  • The 2-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 4:
  • The 3-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 5:
  • The 4-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The 5-year CD continues to mature.

By the end of Year 5, you have a ladder of 5-year CDs maturing every year, providing you with a regular income stream and the opportunity to reinvest at current interest rates.

A CD Ladder is an effective strategy to maximize returns while maintaining liquidity and reducing interest rate risk. It’s an excellent choice for conservative investors looking for a predictable and stable way to grow their savings. At People Driven Credit Union, we offer competitive rates and flexible terms to help you build a CD ladder that meets your financial goals. Contact us today to learn more about how you can get started with a CD Ladder and take control of your financial future.

Set Up a CD Ladder

An IRA CD works similarly to a regular CD. Your initial investment earns a fixed interest rate over a set timeframe and renews automatically. The more money you put in, the higher your rate will be, which means a more significant return on your investment. The main difference is that, unlike a regular CD, an IRA CD offers certain tax advantages associated with a traditional or Roth IRA.

A Money Market IRA is a retirement savings account that combines the benefits of a Money Market Account with the tax advantages of an Individual Retirement Account (IRA). It provides a flexible option for those who want to earn competitive interest while maintaining easy access to funds for regular withdrawals or required minimum distributions.

Yes, a Money Market IRA can be opened under either a Traditional or Roth IRA, allowing you to choose the tax structure that best meets your retirement needs.

To open a Money Market IRA with People Driven Credit Union, a minimum deposit of $1,000 is required.

Interest rates for a Money Market IRA are tiered, increasing as your balance grows. Our highest rate is available for accounts with a balance of $25,000 or more.

Yes, a Money Market IRA is well-suited for individuals who need to make regular withdrawals, such as RMDs, as it provides easy access to funds while continuing to earn interest.

Yes, you can access funds as needed. However, early withdrawals may be subject to taxes or penalties depending on your account type (Traditional or Roth) and how long you have held the funds.

To open a Money Market IRA, you’ll need to schedule an in-person appointment at one of our branch locations.

Yes, Money Market IRAs with People Driven Credit Union are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

An IRA Variable Rate Savings Account is a retirement savings option that offers tax-advantaged growth with a flexible, variable interest rate. This account can be opened as a Traditional, Roth, or Educational IRA, depending on your tax and savings goals.

The interest rate for a Variable Rate IRA Savings Account is variable, meaning it can change over time based on market conditions. Currently, the Annual Percentage Yield (APY) for this account is 0.35%.

You can open an IRA Variable Rate Savings Account with a minimum balance of $100.

Yes, this account is well-suited for those who plan to make regular contributions, as it allows flexible deposits while maintaining tax advantages.

Yes, withdrawals are allowed, but they may be subject to taxes and potential penalties depending on your account type (Traditional, Roth, or Educational IRA) and when you withdraw the funds.

Tax advantages vary by IRA type:

• Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal.
• Roth IRA: Contributions are made with after-tax dollars, and earnings can be withdrawn tax-free in retirement.
• Educational IRA: Earnings grow tax-free if used for qualifying educational expenses.

Yes, IRA Variable Rate Savings Accounts at People Driven Credit Union are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 2.

A Money Market Savings Account is a type of savings account that generally offers higher interest rates than regular savings accounts. It also has some checking account features, like limited check writing.

Money Market Accounts typically offer higher interest rates and allow for limited check writing or transfers, making them more flexible for larger balances than standard savings accounts.

At People Driven Credit Union, the Money Market Savings Account requires a minimum deposit of $1,000 to open.

Interest on a Money Market Account is calculated daily based on the account balance and is paid and compounded monthly, allowing your savings to grow faster.

Yes, federal regulations allow up to six (6) preauthorized withdrawals or transfers per statement cycle with a Money Market Account, including check writing and electronic transfers.

Yes, People Driven’s Money Market Savings Accounts allow for six (6) preauthorized transfers or withdrawals per statement cycle.

Yes, funds in Money Market Accounts at People Driven Credit Union are Federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

Fees may apply if minimum balance requirements are unmet or the number of allowable transactions is exceeded. For more details, refer to the fee schedule provided by People Driven Credit Union.

You can open a Money Market Savings Account by visiting People Driven Credit Union in person, filling out the forms online, or, if you’re a current PDCU member, using the MyPDCU app to open your account.

An RD/USDA mortgage product, or a USDA Rural Development loan, is a home loan offered by the United States Department of Agriculture (USDA) to promote homeownership in eligible rural and suburban areas. These loans are designed to help low to moderate-income borrowers purchase homes in areas designated as rural by the USDA.

Here are some key features of RD/USDA mortgages:

1. No Down Payment Requirement: One of the most significant benefits of RD/USDA loans is that they typically do not require a down payment. Eligible borrowers can finance up to 100% of the home’s purchase price without a down payment, making homeownership more accessible.
2. Low Mortgage Insurance: RD/USDA loans have lower mortgage insurance premiums compared to FHA and conventional loans. This can result in lower monthly mortgage payments for borrowers.
3. Flexible Credit Requirements: While RD/USDA loans have credit score requirements, they may be more lenient than conventional loans. Borrowers with less-than-perfect credit histories may still qualify for an RD/USDA loan, provided they meet other eligibility criteria.
4. Income Limits: RD/USDA loans have income limits based on the area’s median income. Borrowers must meet these income limits to qualify for an RD/USDA loan. The income limits vary depending on factors such as household size and location.
5. Property Eligibility: RD/USDA loans are available for properties in eligible rural and suburban areas designated by the USDA. Borrowers can check the USDA’s Property Eligibility Map to determine if a specific property is eligible for financing.
6. Loan Limits: RD/USDA loans do not have strict loan limits like FHA and conventional loans. Instead, the loan amount is based on the borrower’s income, debt-to-income ratio, and the property’s appraised value.

Overall, RD/USDA mortgages provide a valuable financing option for eligible borrowers purchasing homes in rural and suburban areas. Borrowers considering an RD/USDA loan should consult with an RD/USDA-approved lender to determine if they meet the eligibility requirements and to explore their financing options.

A VA mortgage product is a home loan guaranteed by the U.S. Department of Veterans Affairs (VA) and available to eligible veterans, active-duty service members, National Guard members, Reservists, and certain surviving spouses. VA loans are designed to help veterans and military personnel achieve homeownership by offering favorable terms and features.

Here are some key features of VA mortgages:

1. No Down Payment Requirement: One of the most significant benefits of VA loans is that they typically do not require a down payment. Eligible borrowers can finance up to 100% of the home’s purchase price without a down payment, making homeownership more accessible.
2. Competitive Interest Rates: VA loans often offer competitive interest rates compared to conventional mortgages, helping borrowers save money over the life of the loan.
3. No Private Mortgage Insurance (PMI): VA loans do not require private mortgage insurance (PMI), even with a zero-down payment. This can result in lower monthly mortgage payments than conventional loans with less than 20% down payment.
4. Flexible Credit Requirements: VA loans have credit score requirements but may be more flexible than conventional loans. Borrowers with less-than-perfect credit histories may still qualify for a VA loan, provided they meet other eligibility criteria.
5. VA Funding Fee: VA loans may require a one-time funding fee, which helps offset the cost of the VA loan program for taxpayers. The funding fee varies depending on the borrower’s military status, down payment amount, and whether it’s the borrower’s first VA loan.
6. Loan Limits: VA loan limits vary by location and are based on the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Borrowers can use VA loans to finance properties up to the VA loan limits for their area.

Overall, VA mortgages provide a valuable financing option for eligible veterans and military personnel, offering benefits such as no down payment requirement, competitive interest rates, and no PMI. Borrowers considering a VA loan should consult a VA-approved lender to determine if they meet the eligibility requirements and explore their financing options.

An FHA mortgage product is a type of home loan insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible to borrowers who may have difficulty qualifying for conventional mortgages due to factors such as lower credit scores or smaller down payments.

Here are some key features of FHA mortgages:

1. Low Down Payment: FHA loans typically require a lower down payment than conventional mortgages. Borrowers may qualify for an FHA loan with a down payment as low as 3.5% of the purchase price.
2. Flexible Credit Requirements: FHA loans have more lenient credit score requirements than conventional loans. While specific requirements may vary by lender, borrowers with credit scores as low as 500 may be eligible for an FHA loan with a 10% down payment. Borrowers with credit scores of 580 or higher may qualify for the minimum 3.5% down payment.
3. Mortgage Insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The upfront premium can be financed as part of the loan amount, while the yearly premium is paid as part of the monthly mortgage payment. Mortgage insurance protects the lender in case the borrower defaults on the loan.
4. Loan Limits: FHA loan limits vary by location and are based on the median home prices in the area. Borrowers can use FHA loans to finance properties up to the FHA loan limits for their area.
5. Property Requirements: FHA loans have specific property requirements, including minimum property standards (MPS) established by HUD. These standards ensure that the property meets specific safety and habitability requirements.

Overall, FHA mortgages provide a vital financing option for borrowers who may not qualify for conventional mortgages due to credit or down payment constraints. Borrowers considering an FHA loan should carefully review the program’s requirements and consult a mortgage lender to determine if it fits their needs.

A conventional mortgage is a home loan not insured or guaranteed by the federal government. Unlike government-backed loans such as FHA, VA, or RD/USDA loans, conventional mortgages are funded and serviced by private lenders, banks, credit unions, or mortgage companies.

Here are some key features of conventional mortgages:

1. Down Payment: Conventional mortgages typically require a down payment, with the amount varying depending on factors such as the borrower’s credit history, the loan-to-value ratio, and the lender’s requirements. While conventional loans may require a down payment of as little as 3% to 5%, a larger down payment can help borrowers secure more favorable terms, such as a lower interest rate or avoiding private mortgage insurance (PMI).
2. Credit Score: Conventional mortgage lenders typically have stricter credit score requirements than government-backed loans. While specific requirements may vary by lender, borrowers generally need a credit score of at least 620 to qualify for a conventional mortgage. A higher credit score can help borrowers qualify for lower interest rates and better loan terms.
3. Loan Limits: Conventional mortgages have maximum loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by location and are adjusted annually to reflect changes in home prices. Borrowers seeking to finance amounts above the conventional loan limits may need to consider jumbo loans, which have different requirements and typically higher interest rates.
4. Private Mortgage Insurance (PMI): If the borrower makes a down payment of less than 20% of the home’s purchase price, they may be required to pay private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. Once the borrower’s equity in the home reaches 20% or more, they may be able to cancel PMI, depending on the lender’s policies.
5. Fixed or Adjustable Rates: Conventional mortgages offer both fixed-rate and adjustable-rate options. With a fixed-rate mortgage, the interest rate remains unchanged for the entire loan term, providing predictable monthly payments. Adjustable-rate mortgages (ARMs) have interest rates that fluctuate over time, typically after an initial fixed-rate period.

Overall, conventional mortgages provide financing options for borrowers who meet the credit and income requirements established by lenders. Borrowers should shop around and compare offers from multiple lenders to find the best conventional mortgage product for their needs.

A Super Conforming mortgage is a mortgage loan that falls between the conforming loan limits set by the Federal Housing Finance Agency (FHFA) and the jumbo loan limits. In the United States, conforming loan limits are the maximum loan amounts that government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac can purchase or guarantee.

Conforming loan limits vary by location and are adjusted annually to reflect changes in home prices. They are also higher in high-cost areas.

Super Conforming mortgages are designed to accommodate loan amounts that exceed the standard conforming loan limits but are still within the limits set for high-cost areas. These loans typically offer the same terms and features as conforming mortgages, including competitive interest rates and fixed-rate options.

Here are some key features of Super Conforming mortgages:

1. Loan Limits: Super Conforming loans have loan amounts that exceed the standard conforming loan limits for the area but are still within the limits set for high-cost areas.
2. Eligibility Requirements: Borrowers must meet the lender’s eligibility criteria, including credit score, debt-to-income ratio, and other factors.
3. Competitive Interest Rates: Super Conforming loans often offer competitive interest rates compared to jumbo loans, making them an attractive option for borrowers who need larger loan amounts but want to avoid the higher rates associated with jumbo financing.
4. Down Payment Requirements: Down payment requirements for Super Conforming loans may vary depending on the lender and the borrower’s financial profile. However, borrowers typically need to make a down payment of at least 5% to 10% of the home’s purchase price.

Overall, Super Conforming mortgages provide an option for borrowers who need to finance higher loan amounts while benefiting from competitive interest rates and other favorable terms. Borrowers considering a Super Conforming loan should consult with their lender to determine if this type of financing is the right fit for their needs.

Benefits of Choosing a Super Conforming Mortgage

A Super Conforming mortgage offers several advantages for borrowers needing higher loan amounts without the costs associated with jumbo loans. One key benefit is access to competitive interest rates, which are typically lower than those of jumbo loans, helping borrowers save money over the life of the loan. These mortgages also provide flexibility with fixed- and adjustable-rate options, allowing you to choose a loan structure that best suits your financial goals. Super Comforming mortgages are available to members of People Driven Credit Union.

Is a Super Conforming Mortgage Right for You?

If you’re purchasing a home in a high-cost area and need financing above the standard conforming loan limit but below jumbo loan thresholds, a Super Conforming mortgage may be the right fit. It allows you to borrow more while benefiting from lower rates and less strict qualifying criteria compared to jumbo loans. Borrowers with strong credit and steady income often find this option attractive, especially when seeking affordable monthly payments. Before deciding, learn about PDCU’s home loan options to compare loan options and determine how a Super Conforming mortgage aligns with your homebuying goals.

A construction mortgage, also known as a construction-to-permanent loan, is designed to finance the construction of a new home or major renovations to an existing property. This type of loan differs from a traditional mortgage because it funds the construction process rather than purchasing a completed house.

Here’s how a construction mortgage typically works:

1. Construction Phase: During construction, the borrower receives funds in stages or “draws” as construction progresses. These draws are typically based on milestones such as completing the foundation, framing and finishing work. The borrower pays interest only on the amount drawn during this phase.
2. Conversion to Permanent Mortgage: Once construction is complete, the construction mortgage is converted into a permanent mortgage, also known as an end loan. This permanent loan pays off the construction loan and becomes the borrower’s long-term mortgage for the completed home.

Construction mortgages can be structured in various ways, but they generally offer the following benefits:

1. Financing for Custom Homes: Construction mortgages provide funding for building custom homes tailored to the borrower’s preferences and needs.
2. Interest-Only Payments: During the construction phase, borrowers typically make interest-only payments on the amount drawn, which can help manage cash flow during the construction process.
3. Single Closing: Some construction-to-permanent loans feature a single closing, which simplifies the process and eliminates the need for borrowers to requalify for a mortgage once construction is complete.

However, construction mortgages also come with some potential downsides, including:

1. Complexity: Construction mortgages are more complex than traditional mortgages and may require additional documentation and oversight.
2. Potential for Cost Overruns: Construction projects can encounter unexpected delays and cost overruns, which may require additional financing or adjustments to the loan terms.
3. Higher Interest Rates: Interest rates on construction loans may be higher than rates for traditional mortgages due to the increased risk associated with financing a construction project.

Overall, construction mortgages can be a valuable financing option for borrowers looking to build their dream home or undertake major renovations. However, borrowers should consider the risks and benefits carefully and work closely with their lenders and builders to ensure a successful outcome.

A HomeReady® mortgage is a type of home loan product offered by Fannie Mae, one of the government-sponsored enterprises (GSEs) in the United States. The HomeReady® program is designed to make homeownership more accessible and affordable for low to moderate-income borrowers, particularly first-time homebuyers and those purchasing homes in underserved communities.

Key features of the HomeReady® mortgage program include:

1. Low Down Payment Options: HomeReady® mortgages offer low down payment options, allowing eligible borrowers to purchase a home with as little as 3% down. This can make homeownership more attainable for borrowers who may not have substantial savings for a large down payment.
2. Flexible Income Requirements: The program offers flexibility in income requirements, including allowing income from non-borrower household members, such as parents or other relatives, to be considered in qualifying for the loan. This can help borrowers with lower individual incomes qualify for a mortgage.
3. Affordable Mortgage Insurance: HomeReady® mortgages typically offer lower mortgage insurance premiums than conventional loans, helping to reduce borrowers’ monthly housing costs.
4. Credit Score Flexibility: While HomeReady® mortgages have credit score requirements, they may be more flexible than traditional loans, allowing borrowers with less-than-perfect credit histories to qualify for financing.
5. Homebuyer Education: Fannie Mae requires borrowers to complete an online homebuyer education course to qualify for a HomeReady® mortgage. This course provides valuable information and resources to help borrowers navigate home-buying and become successful homeowners.

Overall, the HomeReady® mortgage program aims to expand access to affordable homeownership opportunities for borrowers facing barriers to traditional financing. It offers flexible features and requirements to accommodate diverse financial situations while promoting sustainable homeownership.

A Home Possible® mortgage is a type of home loan product offered by Freddie Mac, one of the government-sponsored enterprises (GSEs) in the United States. The Home Possible® program is designed to make homeownership more accessible and affordable for low to moderate-income borrowers, particularly first-time homebuyers and those purchasing homes in underserved communities.

Key features of the Home Possible® mortgage program include:

• Low Down Payment Options: Home Possible® mortgages offer low down payment options, allowing eligible borrowers to purchase a home with as little as 3% down. This can make homeownership more attainable for borrowers who may not have substantial savings for a large down payment.
• Flexible Credit Requirements: The program offers flexibility in credit requirements, including allowing for non-traditional credit histories and considering alternative sources of credit, such as rental payments and utility bills.
• Affordable Mortgage Insurance: Home Possible® mortgages typically offer lower mortgage insurance premiums than conventional loans, helping to reduce borrowers’ monthly housing costs.
• Income Limits: While Home Possible® mortgages are targeted towards low to moderate-income borrowers, there are income limits based on the area’s median income. Borrowers must meet these income limits to qualify for the program.
• Homebuyer Education: Freddie Mac requires borrowers to complete a homebuyer education course to qualify for a Home Possible® mortgage. This course provides valuable information and resources to help borrowers navigate home-buying and become successful homeowners.

The Home Possible® mortgage program aims to expand access to affordable homeownership opportunities for borrowers facing barriers to traditional financing. It offers flexible features and requirements to accommodate diverse financial situations while promoting sustainable homeownership.

Fannie Mae and Freddie Mac are both government-sponsored enterprises (GSEs) created to provide stability and liquidity to the mortgage market, but they have some key differences:

Creation and Purpose:

Fannie Mae (Federal National Mortgage Association) was established in 1938 as a government agency but was later privatized in 1968. Its primary purpose is to provide liquidity to the mortgage market by purchasing and securitizing mortgages from lenders.

Freddie Mac (Federal Home Loan Mortgage Corporation) was established in 1970 to expand the secondary mortgage market and increase homeownership. Like Fannie Mae, Freddie Mac purchases mortgages from lenders and packages them into mortgage-backed securities (MBS) for sale to investors.

Regulation:

Fannie Mae and Freddie Mac are regulated by the Federal Housing Finance Agency (FHFA), which oversees their operations, ensures their safety and soundness, and sets guidelines for their activities.

Ownership and Structure:

Fannie Mae and Freddie Mac have different ownership structures. Fannie Mae is a publicly traded company with shareholders. At the same time, Freddie Mac was also publicly traded until it was placed into conservatorship by the U.S. government in 2008 during the financial crisis. Since then, Freddie Mac has been under government control.

Product Focus:

While Fannie Mae and Freddie Mac purchase and securitize various mortgage products, they may have slightly different product focus or guidelines. For example, they may have different underwriting standards or eligibility criteria for the loans they purchase.

Market Impact:

Fannie Mae and Freddie Mac are significant players in the mortgage market and play a crucial role in providing liquidity and stability. Their actions and policies can significantly impact mortgage rates, underwriting standards, and overall market conditions.

Fannie Mae and Freddie Mac serve important functions in the mortgage market and have their strengths and weaknesses.

A Fannie Mae Fixed Rate Mortgage product refers to a type of mortgage loan that is originated, funded, and serviced by a lender but is ultimately sold to Fannie Mae, a government-sponsored enterprise (GSE) established to provide stability and liquidity to the mortgage market.

With a Fannie Mae Fixed Rate Mortgage, the interest rate remains constant for the entire term of the loan, offering borrowers predictability and stability in their monthly mortgage payments. These loans typically have terms ranging from 10 to 30 years, allowing borrowers to choose a repayment schedule that best suits their financial situation.

Fannie Mae Fixed Rate Mortgages are popular among homebuyers and homeowners who prefer the security of knowing that their mortgage payments will remain the same over time, regardless of changes in the broader economy or fluctuations in interest rates.

Similar to Freddie Mac, Fannie Mae does not directly lend money to consumers. Instead, it purchases mortgage loans from lenders and packages them into mortgage-backed securities (MBS) that are sold to investors. This process helps to provide liquidity to the mortgage market and promote homeownership by ensuring that lenders have the funds they need to continue originating new loans.

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Interest rates vary based on factors like your credit score, loan term, and the age of the vehicle or watercraft. People Driven Credit Union offers competitive rates to make financing accessible and affordable for our members. Call 248-263-4100 to speak with a PDCU loan officer about the loan rate you can expect.

People Driven Credit Union allows early payoff without penalties, but it’s important to check your loan agreement for any prepayment penalties.

Yes, People Driven Credit Union requires full coverage insurance to protect the investment in the motorcycle.

Missing a payment can result in late fees, damage to your credit score, and potentially loan default. Contact your lender immediately if you anticipate difficulty making a payment.

Yes, financing is available from People Driven Credit Union for both new and used motorcycles. Keep in mind that interest rates might be higher for used motorcycles.

While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Some lenders may require a down payment based on your credit profile.

 
Create your credit score goal by selecting your desired credit score and the timeframe in which you want to achieve that your goal. Receive personalized recommendations and track your progress. Edit your goal at any time and receive messages when meeting milestones.
 
Are you ready to create, track, and achieve your credit goals? Download the MyPDCU app with Credit Score and Report today.

Yes, MyPDCU Credit Score & Score Simulator and all other features are available on mobile and tablet devices. They are integrated within People Driven Credit Union’s mobile banking application.

Yes, Members can easily choose when People Driven Credit Union contacts them. Navigate to the “Resources” tab, and then under “Profile Settings,” members can choose which email notifications they receive. MyPDCU Credit Score & Score Simulator sends out three types of emails: Credit Monitoring Alerts, General Messages, and Monthly Notices. Members will be automatically enrolled in all email communications and can easily unselect the specific email types they do not wish to receive.

Yes. Alerts are provided via the MyPDCU app, digital banking, and email. The user can update their email preferences for emails by navigating to “Resources” and the “Profile Settings” section.

MyPDCU Credit Score & Score Simulator will provide the following monitoring alerts:

• An account has been included in bankruptcy.
• An account is reported as delinquent.
• A fraud alert has been placed on the credit file.
• A previously derogatory account is now current.
• A new account has been opened.
• An account in your name shows a different address.
• An account in your name listed a new employer.
• A new inquiry on the credit file.
• A new public record has been reported.

No. Checking your MyPDCU Credit Score is always a “soft inquiry,” which does not affect credit scores. Typically, ‘Hard inquiries’ are used by lenders to make decisions about their creditworthiness when Members apply for loans. Multiple hard inquiries can lower a credit score.

Suppose a People Driven Credit Union member has no credit history and/or a low credit score. In that case, they will be shown educational articles or products that cater to those credit score profiles (if offered).

The MyPDCU App features a section with product offers and financial education articles. Based on their MyPDCU credit score information, Members may receive PDCU prequalified offers (invitation to apply) on products that may interest them. Sometimes, these offers may have lower interest rates than the products they already have or can save them money on their monthly payments. The educational articles are designed to provide helpful tips on how Members can manage credit and debt wisely.

The MyPDCU Credit Score is not intended to be comprehensive and may not provide all information about user accounts. We encourage Members to obtain free credit reports from www.annualcreditreport.com to look for incorrect information or discrepancies across all three bureaus. Each bureau has its process for correcting inaccurate information. Still, users can “File a Dispute” by clicking on the “Dispute” link within their PDCU Credit Report for more information about disputes. The Consumer Financial Protection Bureau website offers step-by-step instructions on contacting the bureaus and correcting errors.

People Driven Credit Union has implemented bank-level encryption and security policies to keep our users’ data safe and secure. People Driven Credit Union also has a sophisticated system that scans for and thwarts online bots, intrusions, and attacks. People Driven Credit Union’s policies and processes are reviewed annually by a third-party auditor and verified by multiple digital banking platforms’ Security and Compliance teams to meet their stringent security guidelines to keep both Members’ and financial partners’ data safe and secure.

No, People Driven Credit Union uses our own lending criteria when making final loan decisions and has no access to MyPDCU Credit Score & Score Simulator. However, through MyPDCU Analytics, we can see what Members view and engage with.

To transfer money from one account to another within the MyPDCU mobile/online banking experience, follow these steps:

1. Open the MyPDCU app or visit my.peopledrivencu.org and log in.
2. Click the “Transfer” button.
3. Select which of your accounts you wish to transfer money from.
4. Select which account you wish to transfer money to.
5. Type in the amount you wish to transfer.
6. Once you click submit, the transaction will be placed, there is no other confirmation required.
7. Once you see the green checkmark, you can click on “done,” or “Make another transfer.”

To log out of the MyPDCU app or online banking, follow these steps.

1. Use the menu bar in the upper left-hand corner of the MyPDCU app or online banking.
2. At the bottom of the menu bar, open the “^” popup next to your profile name.
3. Click on “Sign out.”

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

No!  Bill pay is free to use, unless you submit a rush payment or choose the option to send a gift payment.  Costs of these will be shown before submitting.

To make a mobile deposit to your PDCU account using your smartphone, log into your MyPDCU app or the MyPDCU online banking portal and click on “Deposit.” Enter the check amount, click “Continue,” and select which of your accounts (if you have more than one) you want to make the deposit to. Sign your check, write “For Mobile Deposit Only at PDCU”, and include your PDCU account number. Follow the instructions provided in the app to capture an image of the front and back of the check.

Anything deposited over $2,500 will be reviewed by the credit union and will not show in your account right away. Check limit is $25,000. All deposits are subject to holds.

Securely store the original check for 7 business days after the deposit. Verify you check has been credited to your account. After 7 business days, destroy the original check by marking it “VOID” and shredding it.

YES! Depending on your browser, once you have opened your statement you may see icons on the top corner for downloading and printing.  You may also right click on your mouse and choose ‘save as’ or ‘print’.

We suggest using a password only you would know. Do not save any passwords on devices that are not yours. Use facial recognition or thumbprint recognition on your private devices.

There are several convenient ways to make a payment on your People Driven Visa Credit Card:

• Online: Log into online banking, select “Transfer,” choose the account you’re transferring from, and select your Visa card as the transfer destination. You can also set up automatic payments to ensure you never miss a due date.
• Mobile App: Make payments directly through the PDCU mobile app.
• By Phone: Call 844-700-7328 to make a payment with a debit card or have a representative transfer a payment from your PDCU savings or checking account.
• By Mail: You can mail your payment to:
  • People Driven Credit Union
    24333 Lahser Rd
    Southfield, MI 48033
  • Or to PO BOX 984
    Southfield, MI 48037
• In Person: Visit any PDCU branch to make your payment in person.

Setting up automatic payments will ensure you never miss a due date, and you can change the frequency to suit your needs.

When preparing your tax return, you are asked to include the amounts of interest earned on your accounts. If your account earned $10 or more in the calendar year, a 1099-INT will be issued. 1099-INTs are typically mailed to you by the end of January in the new year. You can also access this in online banking; click the E-statement tab and choose ‘Tax statements.’

Bill Pay is a secure electronic service within online banking that allows members to pay bills without having to write checks or sign onto a vendor site to submit an electronic payment. Online bill payment is tied to your PDCU checking account from which funds are withdrawn electronically or via share draft for payment of one-time or recurring bills.

We recommend setting up email notifications on your Apple device so the security code pops up on your screen without opening your email app fully. You can then simply pull down the notification to see the code and enter it without leaving the app.

Follow these steps to enable email notifications:

1. Open the Mail app on your iPhone.
2. To receive notifications about replies to emails or threads:
   • When reading an email: Tap the left arrow and tap Notify Me.
   • When writing an email: Tap the Subject field, tap the blue bell in the subject field, and then tap Notify Me.
3. To adjust how notifications appear:
   • Go to Settings > Apps > Mail > Notifications, then turn on Allow Notifications.
4. To customize notification settings for your email account:
   • Go to Settings > Apps > Mail.
   • Tap Notifications and ensure Allow Notifications is turned on.
   • Tap Customize Notifications and choose the settings you want for your email account (e.g., Alerts or Badges).
   • You can also adjust alert tones or ringtones if you turn on Alerts.

If the issue persists, you can try applying through the browser on your phone or using a computer. As a last resort, you can visit one of our branches and use the iPad in the office to complete your application.

Some members using Apple devices have reported being kicked out of the app when retrieving the security code sent to their email during the Holiday Loan application process. This happens when members leave the app to check their email for the code, which causes the app to restart. This issue doesn’t seem to affect Android devices.

To avoid being kicked out of the application process, read How can I avoid being kicked out of the app when I receive the security code?

Yes, you can apply through the link on the website, but you will need your account number and zip code for verification. If you don’t know your account number, we recommend using the online portal or the MyPDCU app instead to avoid being locked out.

Simply log into your account via online portal or the MyPDCU app and navigate to the loan application section. This process will not ask for your account number and zip code since you’re already verified through your login.

If you are locked out, the system will prevent you from trying again for 24 hours. To avoid this, it’s best to apply through your online or mobile banking, where no additional verification is needed.

If you don’t know your account number, we recommend applying for the PD Quick Cash Loan through your online portal or the MyPDCU app. Once logged in, you will skip the verification step because you’ve already used two-factor authentication to access your account.

PD Quick Cash application decisions are entirely system-driven to ensure fairness and consistency. While we cannot provide specific reasons for denials, we’re happy to assist you in understanding the next steps or offering advice on improving your chances for future applications.

PD Quick Cash applications can only be submitted online. To protect your personal information and meet our security standards, phone applications are not permitted. This ensures your privacy and guarantees that all required information is accurately captured.

If you’re having trouble receiving the validation code, it may be due to your device’s operating system. Ensure your phone or computer is running the latest version, as outdated systems can interfere with code delivery. If you’re still not receiving the code, try restarting your device and submitting the request again.

We recommend setting up email notifications on your Apple device so the security code pops up on your screen without opening your email app fully. You can then simply pull down the notification to see the code and enter it without leaving the app.

Follow these steps to enable email notifications:

1. Open the Mail app on your iPhone.
2. To receive notifications about replies to emails or threads:
   • When reading an email: Tap the left arrow and tap Notify Me.
   • When writing an email: Tap the Subject field, tap the blue bell in the subject field, and then tap Notify Me.
3. To adjust how notifications appear:
   • Go to Settings > Apps > Mail > Notifications, then turn on Allow Notifications.
4. To customize notification settings for your email account:
   • Go to Settings > Apps > Mail.
   • Tap Notifications and ensure Allow Notifications is turned on.
   • Tap Customize Notifications and choose the settings you want for your email account (e.g., Alerts or Badges).
   • You can also adjust alert tones or ringtones if you turn on Alerts.

If the issue persists, you can try applying through the browser on your phone or using a computer. As a last resort, you can visit one of our branches and use the iPad in the office to complete your application.

Some members using Apple devices have reported being kicked out of the app when retrieving the security code sent to their email during the Holiday Loan application process. This happens when members leave the app to check their email for the code, which causes the app to restart. This issue doesn’t seem to affect Android devices.

To avoid being kicked out of the application process, read How can I avoid being kicked out of the app when I receive the security code?

Yes, you can apply through the link on the website, but you will need your account number and zip code for verification. If you don’t know your account number, we recommend using the online portal or the MyPDCU app instead to avoid being locked out.

Simply log into your account via online portal or the MyPDCU app and navigate to the loan application section. This process will not ask for your account number and zip code since you’re already verified through your login.

If you are locked out, the system will prevent you from trying again for 24 hours. To avoid this, it’s best to apply through your online or mobile banking, where no additional verification is needed.

If you don’t know your account number, we recommend applying for the PD Quick Cash Loan through your online portal or the MyPDCU app. Once logged in, you will skip the verification step because you’ve already used two-factor authentication to access your account.

PD Quick Cash application decisions are entirely system-driven to ensure fairness and consistency. While we cannot provide specific reasons for denials, we’re happy to assist you in understanding the next steps or offering advice on improving your chances for future applications.

PD Quick Cash applications can only be submitted online. To protect your personal information and meet our security standards, phone applications are not permitted. This ensures your privacy and guarantees that all required information is accurately captured.

If you’re having trouble receiving the validation code, it may be due to your device’s operating system. Ensure your phone or computer is running the latest version, as outdated systems can interfere with code delivery. If you’re still not receiving the code, try restarting your device and submitting the request again.

To request a skip-a-pay on a People Driven Credit Union mortgage, please get in touch with your mortgage processor, who is currently servicing the mortgage payments.  If your mortgage application was processed by:

• Member First Mortgage call (866) 898-1818 OR contact a Payment Solution Specialist (248) 263-4100
• TowneMortgage (formerly known as Americu) call (888) 778-9700
• Mortgage Center call (800) 353-4449

Contact Us

Who do I contact about signing a loan that is in process?

If you are already working with a Lending Specialist, they can walk you through signing your documents electronically. This can be done from within online banking. You can also reach out to us at (248)263-4100, and one of our specialists will be able to assist you.

Who do I contact about card disputes and fraud?

Please call our Member Center at (248) 263-4100 and speak with a team member to dispute any charges or report fraudulent activity.

How do I get a replacement debit or credit card?

Call us at (248) 263-4100, and a team member will work with you to get a replacement card sent directly to you. We have recently added debit card controls inside our phone app.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A personal loan can impact your credit score in several ways:

• Positive Impact: Making on-time payments can improve your credit score.
• Negative Impact: Missing payments or defaulting on the loan can harm your credit score. Additionally, applying for a loan results in a hard inquiry, which may temporarily lower your score.

Personal loans can be used for a variety of purposes, including:

• Debt consolidation
• Home improvements
• Medical expenses
• Major purchases (e.g., appliances, electronics)
• Special events (e.g., weddings, vacations)
• Emergency expenses

Yes, it is possible to get a personal loan with bad credit, but it may come with higher interest rates and stricter terms. Consider lenders who specialize in bad credit loans, or use a co-signer to improve your chances of approval and secure better rates.

• Secured Personal Loan: Requires collateral (e.g., a car or savings account). Offers lower interest rates due to reduced risk for the lender.
• Unsecured Personal Loan: Does not require collateral. The interest rate is based on your creditworthiness and may be higher than secured loans.

A credit line allows you to borrow in increments, repay it and borrow again as long as the line remains open. Typically, you will be required to pay interest on borrowed balance while the line is open for borrowing, which makes it different from a conventional loan, which is repaid in fixed installments.  A line of credit will have a set limit in which you will be approved for and you can borrow based off the limit.

You may give us a call at 248-263-4100 to speak with the loan department.

PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, login to the MyPDCU Online Portal or use the MyPDCU app, and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Call iTalk (telephone teller) at 844-700-7328 to make your payment. Select Option 2 to make a payment.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

A CD Secured Loan is a type of loan that uses a Certificate of Deposit (CD) as collateral. This allows borrowers to access funds while keeping their CD intact and continuing to earn interest. Since the CD secures the loan, it often comes with lower interest rates.

When you take out a CD Secured Loan from People Driven Credit Union, your Certificate of Deposit (CD) is held as collateral. You borrow an amount that’s usually equal to or less than the value of the CD. You continue to earn interest on the CD during the life of the loan. Once the loan is repaid, you regain full access to your CD.

The benefits of a CD Secured Loan include

• Lower Interest Rates: Because the loan is secured by your CD, the interest rates are typically lower than those of unsecured loans.
• Credit Building: A CD Secured Loan can help you build or improve your credit score through consistent, on-time payments.
• Preservation of Savings: You can access loan funds without breaking your CD and continue to earn interest on it.

A CD Secured Loan can be used for a variety of purposes, such as covering unexpected expenses, making large purchases, or consolidating debt. Since it’s a personal loan, you have the flexibility to use the funds as needed.

The loan amount is typically based on the value of your CD. You can usually borrow up to 100% of the CD’s value.

Yes, your CD continues to earn interest while it’s used as collateral for the loan. This means you benefit from both the loan funds and the interest accumulation on your CD.

If you are unable to repay the loan, the lender may seize the funds in your CD to cover the outstanding loan balance. Defaulting on the loan can also negatively impact your credit score.

People Driven Credit Union has teamed up with GreenPath Financial Wellness to assist our members in improving their finances and credit. To get started, call GreenPath at 877-337-3399, mention that you’re a PDCU member, and schedule an appointment with one of their representatives.

Interest rates on CD Secured Loans are generally lower than those of unsecured loans because the loan is backed by collateral. However, the rate may vary depending on the lender, the secured CD’s Annual Percentage Yield (APY), and the loan term.

A CD Secured Loan can help you build or improve your credit score if you make on-time payments. People Driven Credit Union will typically report your payment history to the credit bureaus, which can positively impact your credit.

Yes, People Driven Credit Union allows early repayment of CD Secured Loans without penalties. Paying off the loan early can help you save on interest costs and regain full access to your CD.

People Driven Credit Union allows early repayment of Credit Builder Loans with no prepayment penalty.

Once the loan is fully repaid, you’ll have access to the funds in the secured account, and your positive payment history will be reflected in your credit report.

A Credit Builder Loan can still be helpful if you have existing credit but are looking to improve your score. It adds positive payment history to your credit report, which can strengthen your credit profile.

Yes, Credit Builder Loans typically come with an interest rate. The rate can vary depending on your credit history.

The loan amounts for Credit Builder Loans from People Driven Credit Union range from a few hundred up to $2,000.

Missing a payment on a Credit Builder Loan can negatively impact your credit score, as People Driven Credit Union will report late or missed payments to the credit bureaus. It’s important to make all payments on time to build a positive credit history.

Building or improving your credit score with a Credit Builder Loan typically takes several months. Consistent, on-time payments over the loan term will have a positive impact on your credit score. The exact time depends on your starting credit history and the loan’s length.

Yes, a Credit Builder Loan can help improve your credit score as long as you make regular, on-time payments. People Driven Credit Union reports your payment history to the credit bureaus, and positive payment behavior can lead to an increase in your credit score over time.

No, the loan funds are typically held in a secured account and are only accessible once the loan is fully repaid. This structure is designed to help you build credit while also fostering a habit of saving.

When you take out a Credit Builder Loan, the loan amount is held in a secured account (such as a savings account). You make regular payments over the loan term, including interest. Once the loan is fully paid off, you gain access to the funds in the secured account, while your payment history has been reported to the major credit bureaus, helping improve your credit score.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A Debt Consolidation Loan is a personal loan that allows you to combine multiple debts, such as credit card balances, medical bills, or other loans, into a single loan with one monthly payment. The goal is to simplify debt management and potentially secure a lower interest rate, reducing the overall cost of your debt.

When you take out a Debt Consolidation Loan, the lender provides you with a lump sum that you use to pay off your existing debts. You then make monthly payments on the new loan over a fixed period, typically with a lower interest rate than what you were paying on your previous debts.

Getting a Debt Consolidation Loan with bad credit is possible, but the terms may be less favorable, with higher interest rates or shorter repayment periods. Improving your credit score before applying can help you secure better loan terms.

You can consolidate a variety of unsecured debts, such as:

• Credit card balances
• Personal loans
• Medical bills

Payday loans and secured debts, like a mortgage or auto loan, typically cannot be included in a Debt Consolidation Loan.

A Debt Consolidation Loan can save you money if you qualify for a lower interest rate than what you currently pay on your debts. However, it’s important to factor in any fees associated with the loan and consider the length of the repayment term, as a longer-term may mean paying more interest over time.

Repayment terms vary but generally range from 12 to 60 months, depending on the loan amount and policies. The term you choose will affect your monthly payment and total interest paid over time.

Interest rates on Debt Consolidation Loans depend on factors like your credit score, income, and the lender’s terms. People Driven Credit Union offers competitive rates, and borrowers with higher credit scores are more likely to qualify for lower rates.

Yes, a Debt Consolidation Loan can help improve your credit score over time, especially if you make on-time payments and reduce your overall credit card balances. However, missing payments or taking on more debt after consolidating could negatively affect your score.

A balance transfer credit card typically offers a low or 0% introductory interest rate for a set period, making it an attractive option for consolidating credit card debt. However, the interest rate may increase significantly if you can’t pay off the balance during the introductory period. A Debt Consolidation Loan offers fixed monthly payments and interest rates, providing more stability over the repayment term.

A Home Improvement Loan is a personal loan designed to help homeowners finance renovations, repairs, or upgrades to their homes. These loans can be used for various home improvement projects, including remodeling, energy efficiency upgrades, and essential repairs.

You can use a Home Improvement Loan for a wide range of projects, such as:

• Renovating a kitchen or bathroom
• Installing new windows or doors
• Adding a new room or extension
• Upgrading heating, ventilation, or air conditioning systems
• Repairing roofs or plumbing
• Improving energy efficiency with solar panels or insulation

Home Improvement Loans are often unsecured, meaning you don’t need to provide collateral like your home or other assets. However, People Driven Credit Union may offer secured loans for larger projects using your home as collateral.

Interest rates on Home Improvement Loans vary based on factors such as your credit score, the loan amount, and the term length. Generally, these loans offer lower interest rates compared to credit cards, but rates can vary between secured and unsecured loans. View all loan rates.

Repayment terms typically range from 12 to 84 months, depending on the loan amount and policies. The term you choose will affect your monthly payment amount and the total interest you pay over time.

To qualify, People Driven Credit Union will typically evaluate factors such as:

• Your credit score and credit history.
• Your income and employment status.
• Your debt-to-income ratio: Good credit and stable income improve your chances of approval and provide better loan terms.

Getting a Home Improvement Loan with bad credit may be possible, but the interest rates are likely to be higher, and the loan terms may be less favorable. If your credit is poor, consider secured loan options or improve your credit before applying.

Home Equity Loans for Borrowers With Bad Credit

A secured loan is a type of loan that requires collateral—such as a home, savings account, vehicle, or other valuable asset—to back the loan. For individuals with bad credit, secured loans, such as a home equity loan or home equity line of credit, can be a helpful option because the collateral reduces the lender’s risk, making approval more likely. By offering security, you may also qualify for better interest rates compared to unsecured loans. Plus, making timely payments on a secured loan can help improve your credit score over time. Keep in mind that if the loan isn’t repaid, the lender can claim the collateral to recover the balance. Talk to a PDCU lender to learn about your options.

Improve Your Credit Score to Qualify for a Home Improvement Loan With Bad Credit

Improving your credit score before applying for a home loan can help you qualify for better rates and terms. Start by reviewing your credit report for errors and disputing any inaccuracies. Pay down existing debts, especially high-interest credit cards, and make all payments on time, as payment history is a key factor in your score. Avoid opening new credit accounts before applying for a mortgage, as this can lower your score temporarily. Taking these steps can strengthen your financial profile and increase your chances of securing a favorable home loan.

Approval times vary, but People Driven Credit Union can approve and disburse funds within a few days. We strive to provide a quick and efficient loan process so you can get started on your project immediately.

Home Improvement Loans generally offer lower interest rates and fixed monthly payments than credit cards. With a credit card, interest rates can fluctuate, and you may pay more in interest over time if you carry a balance.

Many home improvement projects can increase the value of your home, especially if they enhance its functionality, energy efficiency, or curb appeal. Common value-boosting projects include kitchen and bathroom remodels, new windows, and energy-efficient upgrades.

A Share Covered Loan, also known as a Share Secured Loan, is a type of loan in which the borrower uses funds from their savings or share account as collateral. This loan allows you to borrow against your savings without withdrawing the funds, and it often comes with lower interest rates due to the secured nature of the loan.

Yes, even though the funds in your savings account are being used as collateral, they will continue to earn dividends during the life of the loan.

The amount you can borrow is typically based on the balance in your savings account. In most cases, you can borrow up to the full amount of your share balance, although the exact amount may vary.

If you’re unable to repay your Share Covered Loan, the funds in your savings account that are being used as collateral may be used to pay off the remaining balance of the loan. However, this could negatively impact your savings and credit score, so staying on top of payments is important.

Your payment history on a Share Covered Loan will be reported to the credit bureaus. Making on-time payments can positively affect your credit score, while late payments or defaults can harm it.

Yes, People Driven Credit Union allows early repayment of Share Covered Loans without penalties. Paying off the loan early can save you money on interest and free up your savings more quickly.

The main difference is that a Share Covered Loan is secured by your savings, which allows for lower interest rates and easier approval. An unsecured loan does not require collateral, so it typically comes with higher interest rates based on your creditworthiness.

A Share Covered Loan can be an excellent way to build or improve your credit. Because it’s secured, it’s often easier to get approved, and as long as you make on-time payments, it will positively impact your credit score.

A Share Covered Loan can be used for various purposes, including home improvements, debt consolidation, large purchases, or covering unexpected expenses. Its flexibility makes it a versatile borrowing option.

Yes, it is possible to get a personal loan with bad credit, but it may come with higher interest rates and stricter terms. Consider lenders who specialize in bad credit loans, or use a co-signer to improve your chances of approval and secure better rates.

An RD/USDA Mortgage Loan is a home loan backed by the United States Department of Agriculture (USDA), designed to help low-to-moderate-income households purchase homes in eligible rural and suburban areas. These loans offer favorable terms, including no down payment and competitive interest rates.

Eligibility for a USDA loan is based on income and location. Applicants must meet income limits, which vary by area and household size, and the property must be located in an eligible rural or suburban area as defined by the USDA. You can check eligibility on the USDA’s website or contact one of our mortgage specialists for assistance.

• No Down Payment: Purchase a home without needing a down payment.
• Competitive Interest Rates: Benefit from lower interest rates compared to conventional loans.
• Flexible Credit Requirements: Qualify with a range of credit scores.
• Low Monthly Mortgage Insurance: Enjoy lower mortgage insurance costs compared to FHA and conventional loans.
• Finance Closing Costs: In some cases, closing costs can be included in the loan amount.

USDA loans can be used to finance single-family homes in eligible rural and suburban areas. The property must be used as the borrower’s primary residence and meet certain quality standards set by the USDA.

The amount you can borrow with a USDA loan depends on your income, debts, and the property’s value. There are no set maximum loan limits for USDA loans, but the loan amount must not exceed your ability to repay.

Yes, USDA loans require mortgage insurance. There is an upfront guarantee fee, which can be financed into the loan, and an annual fee that is paid monthly. However, these costs are generally lower than the mortgage insurance premiums for FHA and conventional loans with low down payments.

The USDA loan process involves several steps:

1. Pre-qualification: Determine if you meet basic eligibility requirements.
2. Pre-approval: Submit financial documents for a more detailed evaluation.
3. Property Selection: Find a home in an eligible rural or suburban area.
4. Loan Application: Complete a formal loan application and provide necessary documentation.
5. Underwriting: The lender reviews your application and the property’s appraisal.
6. Approval and Closing: Once approved, you’ll sign the final loan documents and close on your new home.

Yes, USDA loans can be used to refinance an existing mortgage through the USDA’s Streamlined Refinancing Program, which offers reduced documentation requirements and can help lower your interest rate or adjust your loan term.

Typical documentation includes proof of income, tax returns, employment verification, credit history, and details of your current financial obligations. Our mortgage specialists will provide a comprehensive list of required documents based on your specific situation.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

Absolutely. We offer financing options for both new and pre-owned ATVs. Terms and rates may vary based on the vehicle’s condition and age.

Yes, our pre-approval process lets you know your borrowing power before you start shopping for your perfect ATV.

Our ATV loans cover a variety of all-terrain vehicles designed to enhance your off-road adventures, including, ATVs, UTVs (Utility Task Vehicles), side-by-sides (sxs) four-wheelers, quad bikes, recreational off-highway vehicles (ROVs), and multipurpose off-highway utility vehicle (MOHUV).

Have something in mind and wondering if PDCU will finance it? Call us as 248-463-4100.

You’ll generally need proof of income, a look at your credit history, and details about the watercraft you wish to finance. Our team is here to help every step of the way. For more information or personalized assistance, please contact a People Driven Credit Union representative at 248-263-4100.

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Yes, PDCU finances both new and pre-owned watercraft. Rates and terms may differ, so our team can help you find the best option based on your needs.

Absolutely. Our pre-approval process gives you a clear idea of your borrowing power before you start shopping, simplifying your purchasing journey.

United Concordia Dental is pleased to serve the dental insurance needs of People Driven Credit Union members and their families. People Driven Credit Union and United Concordia are partners because we care about your and your family’s oral health.

Oral health problems often tax the immune system, exposing you to a greater risk of illness and infection. To help maintain a healthier smile and a healthier you, we encourage you to follow the advice of your dentist and the American Dental Association. Your dental plan emphasizes preventive care to help avoid costly procedures commonly caused by delayed treatment.

What plans are available? – People Driven Credit Union members have the choice of three plan options, including Concordia Plus MI 20 Series(DHMO), Concordia Plus MI 40 Series (DHMO), or Concordia Flex (FFS).

• Both Concordia Plus plans are managed care plans that require you to pre-select a primary dental office (PDO) from our Concordia Plus network for each of your covered family members and yourself. Each family member may select a different PDO. These plans reduce out-of-pocket costs as they feature no deductibles or annual maximum.
• Concordia Flex is a fee-for-service (FFS) plan that provides access to many practicing locations through our Advantage Plus network. Suppose your dentist does not currently participate in our network. In that case, you may still use your dentist, but your out-of-pocket expenses will likely be higher. Visiting one of our network dentists helps lower out-of-pocket costs and eliminates the need to fill out claim forms.

The plans include the Davis Vision Discount Program, which offers discounts on eye exams, eyewear, and laser vision correction. See the Davis Vision Discount Program flyer for more information.

How do I find a dentist? – If you would like to locate a participating dentist or check on the participation status of your current dentist, click on the button below:

Search for a Concordia Plus Dentist

What if I have a question? – If you have a question about your dental benefits prior to being enrolled in the program, email United Concordia Dental Customer Service or call the appropriate toll-free Customer Service number. After you are enrolled, visit My Dental Benefits for online access to your benefits detail, claim history, claim status, eligibility information and more!

Visit Love My Credit Union Rewards to view all your perks such as discounts from our partners, and view all the benefits available to members of People Driven Credit Union.

You can win monthly, quarterly, and annual cash prizes, just like with the Save to Win® Savings Account. The more you save, the better your chances to win! Please refer to the official Save to Win® Savings Account rules for complete details.

Yes, you can still participate in Round Up To Win! However, the more you use your debit card, the more opportunities you have to save and enter for prizes.

You earn one entry for every $25 saved through rounding up your debit card purchases. The more purchases you make, the more entries you earn.

To enable Round Up To Win, call 844-700-7328 or visit a branch. Once set up, your debit card purchases will automatically round up, and the extra change will be deposited into your Save to Win® Savings Account.

Round Up To Win allows you to round up your debit card purchases to the nearest dollar and automatically save the change into your Save to Win® Savings Account. Each time you save $25, you earn an entry for a chance to win exciting cash prizes.

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Interest rates vary based on factors like your credit score, loan term, and the age of the vehicle or watercraft. People Driven Credit Union offers competitive rates to make financing accessible and affordable for our members. Call 248-263-4100 to speak with a PDCU loan officer about the loan rate you can expect.

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, login to the MyPDCU Online Portal or use the MyPDCU app, and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Call iTalk (telephone teller) at 844-700-7328 to make your payment. Select Option 2 to make a payment.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

No, there is no fee to participate in the Save to Win® Savings Account. You simply save money and earn chances to win.

You can open a Save to Win® Savings Account with $0. However, to earn entries into prize drawings, you must deposit at least $25 into your account. The more you save, the better your chances to win!

Prizes include monthly cash drawings ($100, $50, and $25), quarterly drawings for $1,000, and an annual grand prize. You can have up to 537 chances to win every quarter!

Each time you add $25 to your Save to Win® Savings Account, you earn one entry into the prize drawings. The more you save, the more entries you earn, increasing your chances of winning!

A Save to Win® Savings Account allows you to save money and enter for a chance to win cash prizes. For every $25 you save in the account, you earn one entry into monthly, quarterly, and annual prize drawings. The more you save, the better your chances to win!

Yes, you can withdraw your money early from the Save to Win® CD; however, penalties will apply. The APY² is based on the assumption that interest will remain in the account until maturity. If you make an early withdrawal, it may reduce your earnings.

• For CDs with a term of 6 months or less, the penalty is the loss of 30 days’ interest.
• For CDs with a term of greater than 6 months but less than 12 months, the penalty is the loss of 90 days’ interest.
• The penalty for CDs with a term greater than 12 months is the loss of 180 days’ interest.

Please refer to the full terms and conditions for more details. The Save to Win® CD program may be discontinued or modified at any time.

The minimum deposit to open a Save to Win® CD is $25.

The APY² on the Save to Win® Certificate of Deposit is 2.70%.

To participate, simply open a Save to Win® Certificate of Deposit with a minimum deposit of $25. For every $25 you add, you earn one entry into the prize drawings. There are monthly, quarterly, and annual drawings for cash prizes.

A Save to Win® CD is a special certificate of deposit that rewards you for saving. Every $25 you add to your CD earns you an entry into monthly, quarterly, and annual prize drawings. The more you save, the better your chances to win!

Yes, you can withdraw your money early from the Save to Win® CD; however, penalties will apply. The APY² is based on the assumption that interest will remain in the account until maturity. If you make an early withdrawal, it may reduce your earnings.

• For CDs with a term of 6 months or less, the penalty is the loss of 30 days’ interest.
• For CDs with a term of greater than 6 months but less than 12 months, the penalty is the loss of 90 days’ interest.
• The penalty for CDs with a term greater than 12 months is the loss of 180 days’ interest.

Please refer to the full terms and conditions for more details. The Save to Win® CD program may be discontinued or modified at any time.

The minimum deposit to open a Save to Win® CD is $25.

The APY² on the Save to Win® Certificate of Deposit is 2.70%.

To participate, simply open a Save to Win® Certificate of Deposit with a minimum deposit of $25. For every $25 you add, you earn one entry into the prize drawings. There are monthly, quarterly, and annual drawings for cash prizes.

A Save to Win® CD is a special certificate of deposit that rewards you for saving. Every $25 you add to your CD earns you an entry into monthly, quarterly, and annual prize drawings. The more you save, the better your chances to win!

No, there is no fee to participate in the Save to Win® Savings Account. You simply save money and earn chances to win.

You can open a Save to Win® Savings Account with $0. However, to earn entries into prize drawings, you must deposit at least $25 into your account. The more you save, the better your chances to win!

Prizes include monthly cash drawings ($100, $50, and $25), quarterly drawings for $1,000, and an annual grand prize. You can have up to 537 chances to win every quarter!

Each time you add $25 to your Save to Win® Savings Account, you earn one entry into the prize drawings. The more you save, the more entries you earn, increasing your chances of winning!

A Save to Win® Savings Account allows you to save money and enter for a chance to win cash prizes. For every $25 you save in the account, you earn one entry into monthly, quarterly, and annual prize drawings. The more you save, the better your chances to win!

Our application process often provides pre-approval decisions quickly, and final approval typically takes just a few days once all documentation is submitted.

Yes, enrolling in autopay may qualify you for a rate discount, reducing the overall cost of your loan. Check with our team for current promotional details.

A down payment may be needed, depending on your credit profile, the value of the vehicle or watercraft, and the specific loan structure. While not always required, a down payment can lower your monthly payments and the total amount of interest paid. Our representatives will guide you through the requirements. Call 248-263-4100 to speak with a PDCU loan officer.

Loan terms are flexible and can be tailored to fit your financial situation. At People Driven Credit Union, loan terms for recreational vehicles such as ATVs, motorcycles, boats, snowmobiles, and campers generally range from 12 to 180 months. Longer terms can lower monthly payments but may result in higher total interest paid.

Interest rates vary based on factors like your credit score, loan term, and the age of the vehicle or watercraft. People Driven Credit Union offers competitive rates to make financing accessible and affordable for our members. Call 248-263-4100 to speak with a PDCU loan officer about the loan rate you can expect.

Yes! All eligible loans can be skipped once per calendar year for a fee of $35. To learn more about how it works, visit our Skip-a-Payment page. Please note that Fresh Start Auto Loans, PD Quick Cash Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, login to the MyPDCU Online Portal or use the MyPDCU app, and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Call iTalk (telephone teller) at 844-700-7328 to make your payment. Select Option 2 to make a payment.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

A Super Conforming Mortgage Loan is a type of mortgage that exceeds the standard conforming loan limits set by the Federal Housing Finance Agency (FHFA) but remains within the maximum loan limit for high-cost areas. These loans are designed to help homebuyers in regions with higher property values.

While both Super Conforming Loans and Jumbo Loans exceed standard conforming loan limits, Super Conforming Loans apply to high-cost areas and typically offer lower interest rates than Jumbo Loans. Jumbo Loans, on the other hand, exceed the maximum loan limits for high-cost areas.

• Higher Loan Limits: Allows you to borrow more than standard conforming loan limits.
• Competitive Interest Rates: Generally lower than Jumbo Loan rates.
• Flexible Terms: Various term options to suit your financial goals.
• Fixed and Adjustable Rates: Choose between stability or potential savings.

Eligibility for a Super Conforming Mortgage Loan typically depends on factors such as credit score, income, debt-to-income ratio, and the specific high-cost area where you are purchasing a home.

High-cost areas are designated by the FHFA and are typically regions where the median home prices significantly exceed the national average. You can check with our mortgage specialists or the FHFA website to see if your area qualifies.

Loan limits for Super Conforming Mortgages vary by location and are determined annually by the FHFA. These limits are higher than standard conforming loan limits but vary based on the cost of living in the area.

Yes, Super Conforming Loans can be used for refinancing an existing mortgage in addition to purchasing a new home.

Super Conforming Loans can be used to finance various types of properties, including single-family homes, condos, and multi-family properties up to four units, provided they are located in designated high-cost areas.

Typical documentation includes proof of income, credit reports, employment verification, tax returns, and details of your current financial obligations. Our mortgage specialists will provide a comprehensive list of required documents.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

A VA Mortgage Loan is a home loan backed by the Department of Veterans Affairs (VA). It offers favorable terms and benefits designed to help veterans, active-duty service members, and eligible surviving spouses purchase, refinance, or improve a home.

Eligibility for a VA loan includes veterans, active-duty service members, National Guard members, Reservists, and eligible surviving spouses. Specific service requirements apply, so it’s best to check with a VA-approved lender or the VA directly to determine your eligibility.

• No Down Payment: Purchase a home without needing a down payment.
• No Private Mortgage Insurance (PMI): Save on monthly costs as VA loans do not require PMI.
• Competitive Interest Rates: Enjoy lower interest rates compared to conventional loans.
• Flexible Credit Requirements: Qualify with a range of credit scores.
• Assumable Loan: Transfer the loan to a new buyer if you sell your home.
• Closing Cost Limits: Benefit from caps on closing costs charged by lenders.

The amount you can borrow with a VA loan depends on your entitlement and the loan limits in your area. Generally, there is no maximum loan amount, but the VA will only guarantee up to a certain amount, which influences how much a lender will approve.

The VA does not set a minimum credit score requirement, but most lenders require a credit score of at least 620. Some lenders may approve loans with lower scores based on other factors.

Service requirements vary depending on whether you are a veteran, active-duty service member, National Guard member, or Reservist. Generally, veterans must have served 90 consecutive days during wartime, 181 days during peacetime, or six years in the National Guard or Reserves.

Yes, you can use a VA loan multiple times, provided you have sufficient entitlement remaining or have restored your entitlement by paying off a previous VA loan.

A loans are intended for primary residences only. You cannot use a VA loan to purchase a second home or investment property.

Why You Can’t Use a VA Loan to Buy a Second Home

The VA loan program is designed to help eligible veterans, active-duty service members, and certain surviving spouses secure affordable financing for homes they plan to live in as their primary residence. While you cannot use a VA loan for a vacation home or rental property, there are exceptions where you may rent out a previously purchased VA-financed home after fulfilling occupancy requirements. However, you cannot use a VA loan to directly purchase a property with the sole intention of using it as an investment.

Financing Options Other Than VA Loans for a Second Home

If you’re looking to purchase a second home or investment property, several mortgage alternatives are available. Conventional loans are a common option and typically require a higher credit score and larger down payment than primary residence loans, especially for investment properties. For those with significant home equity, a home equity loan or home equity line of credit (HELOC) can provide funds to purchase another property. Additionally, jumbo or Super Conforming loans may be suitable if you need to finance a high-value second home beyond conforming loan limits. Comparing these options with a mortgage professional at People Driven Credit Union can help you select the best financing solution based on your goals and financial situation.

The VA funding fee is a one-time fee paid to the VA to help fund the loan program. It can be financed into the loan amount and varies based on factors such as the type of loan, the borrower’s military category, and the down payment amount. Some borrowers, such as those with service-connected disabilities, may be exempt from the funding fee.

Apply online or contact our mortgage specialist, Jim Rogers, who will guide you through the application process, help you understand your options, and determine your eligibility.

James (Jim) Rogers is authorized to act as an agent on behalf of People Driven Credit Union. Contact him for personalized assistance with your mortgage needs.

Jim Rogers

Member First Mortgage
james.rogers@memberfirstmortgage.com
(616) 301.6278 | NMLS ID# 235651

Most credit card issuers look for a fair to excellent credit score, typically ranging from 580 to 850, depending on the card. Higher scores generally increase your chances of approval and offer better interest rates.

Credit card approval can take anywhere from a few minutes (for online applications) to a couple of business days, depending on the complexity of your financial situation.

There are no application fees or balance transfer fees, but there are a few fees to be aware of:

Missing a payment can lead to late fees, higher interest rates, and potential harm to your credit score. To avoid this, it’s essential to make at least the minimum payment by the due date each month. Keep in mind that any missed or delayed payments will increase your overall interest costs. Even if you make a partial payment or prepay, you will still need to pay the minimum amount due by the next scheduled due date to keep your account current.

While we may accept late or partial payments, as well as checks or money orders marked “payment in full,” doing so will not settle your account or waive any remaining balance.

Your initial credit limit will depend on your credit score, income, and other financial factors. After regular use and responsible payment behavior, many issuers offer credit limit increases over time.

Yes, you can! With People Driven Credit Union’s Rewards Driven Credit Card, there are no balance transfer fees. You can reduce the interest you pay by transferring your high-interest credit card balances to a PDCU Rewards Driven Credit Card, all without any additional cost.

If your People Driven Credit Union Visa Rewards Driven Credit Card is lost or stolen, or if you suspect unauthorized use, notify us immediately. “Unauthorized use” refers to any use of the card by someone without your permission, where you receive no benefit.

To report your Rewards Driven Credit Card as lost or stolen, call us at 844-700-7328 immediately.

After hours ONLY: Report a lost or stolen People Driven Credit Union Visa Rewards Driven Credit Card by calling 800-543-5073.

After your call, please follow up with a written notice to:

Credit Card Security Department
PO Box 30035
Tampa, FL 33630

We may ask for your help in investigating the loss or unauthorized use. Your liability for unauthorized charges will only apply if it can be proven that you were negligent in handling the card or if you engaged in fraudulent use.

To report a lost or stolen PDCU ATM or Visa Debit Card, visit our FAQs on ATM/Debit card loss or theft.

There are several convenient ways to make a payment on your People Driven Visa Credit Card:

• Online: Log into online banking, select “Transfer,” choose the account you’re transferring from, and select your Visa card as the transfer destination. You can also set up automatic payments to ensure you never miss a due date.
• Mobile App: Make payments directly through the PDCU mobile app.
• By Phone: Call 844-700-7328 to make a payment with a debit card or have a representative transfer a payment from your PDCU savings or checking account.
• By Mail: You can mail your payment to:
  • People Driven Credit Union
    24333 Lahser Rd
    Southfield, MI 48033
  • Or to PO BOX 984
    Southfield, MI 48037
• In Person: Visit any PDCU branch to make your payment in person.

Setting up automatic payments will ensure you never miss a due date, and you can change the frequency to suit your needs.

Wills and Trusts have a lot of overlap, but also a lot of differences.

Wills are simpler documents that let you name guardians for kids and pets, designate where assets go, and specify final arrangements. The simplicity of a Will does come with some drawbacks: a Will offers more limited control over the distribution of assets and often must go through a probate process after death.

Like a Will, a Trust also controls the disposition of assets but provides greater control over when and how your assets are distributed. Trusts only apply to assets held in the Trust, so you will need to transfer assets to the Trust. This makes a Trust a little more complex to set up, but it brings a major benefit. Trusts are also often used to minimize or avoid probate entirely, which can be a huge draw for many and justifies the additional work upfront needed to create a Trust.

Both are ways to say who will receive your assets – Each has different ways of distributing those assets, as well as different advantages and disadvantages.

Learn more about Trusts and Wills.

Yes! Online Estate Planning offers the same level of validity and function as its traditional counterpart, with added advantages (such as affordability and accessibility). By leveraging advanced technology alongside exceptional customer support, their services ensure a smooth experience from start to finish, simplifying estate planning for everyone. Trust & Will is the trusted estate planning partner of 100+ financial institutions across the US.

We are not a law firm, and we are not a substitute for a lawyer or a law firm. We cannot give legal advice, guidance, or services. No attorney-client relationship is formed by any interactions with us and information provided to us is not protected by the attorney-client privilege.

Most people complete a Will in 15 minutes, and a Trust in about 20 minutes. All your answers are saved as you go, so feel free to pause and come back to pick up where you left off at any time!