Lifestyle Lending

Lifestyle lending is gaining credit union converts seeking innovation and growth in their loan portfolios. This type of lending – typically unsecured – has evolved to cover a variety of non-traditional loans that can enhance a member’s lifestyle. These loans are financing adoptions, cosmetic surgeries, infertility treatments, and uninsured medical expenses. Lifestyle loans are consistent with the origins and philosophy of credit union – they meet the needs of members at different stages of their lives.

Credit unions are getting involved in lifestyle lending to strengthen their relationships with members and to offer creative financing, according to Barry Shaner, President of Toledo Area Community Credit Union, which began offering lifestyle loans in 2004.

“We are looking for new ways to do lending,” he said. “Our biggest segment of members is in the middle market – baby boomers in their mid-40s. As they age, they are not going to borrow as much for cars and homes. This program came as a response to a member who had a cosmetic procedure done.”