Pasadena Federal Credit Union Reimagines Lending, Promotes Membership Growth and Community Involvement

Pasadena Federal Credit Union, a grassroots organization with a rich history dating back to the early 1930s, distinguishes itself from traditional banks through its community-focused approach and personalized services.

Kathy Tichenor, the Chief Lending Officer at PFCU, outlined the benefits of credit unions over traditional banks, the lending decision process, and the organization’s commitment to community engagement.

Tichenor explained that credit unions operate on a membership model with a guiding principle of “members helping members.” This approach, which originated in the early 1930s and before, provides members with lower rates and a more personalized approach to lending. 

“We’re here to help, not to gouge,” Tichenor said.

Tichenor clarified that the PFCU lending process while it’s not much different from banks, employs a more holistic approach. Rather than relying on algorithms, the union considers the borrower’s entire profile, including job history, overall life situation, and credit standing. 

“We look for ways we can approve [a loan],” she said.

In cases where approval is not possible due to the member’s debt-to-income ratio or other factors, Tichenor explained that the credit union provides guidance on how to improve the member’s financial standing. 

“We want to help you. If you can do X and X and X and hit these little goals over the next six months…we’ll be able to help you,” she explained they might say.

Speaking on the organization’s community focus, Tichenor cited various outreach initiatives such as partnering with city events, offering membership to local library friends groups, and providing specialty financing. Furthermore, the credit union recently opened a branch in a banking desert area, and plans are underway to expand the charter to facilitate membership growth and further community integration.

“We’re not going to talk [members] into something they don’t need,” Tichenor said, emphasizing the credit union’s aim to tailor their services to meet individual member’s needs. 

“We will finance a one hundred thousand dollar Porsche. As long as the member qualifies and they have the ability to, we’re not afraid to do a larger loan when it all fits,” she added.

Tichenor assures that the Pasadena Federal Credit Union strives to keep interest rates as low as possible,  in light of the recent economic challenges. She explained that due to the non-profit nature of the organization, the interest earned on loans is returned to the members. 

“We have done our best to keep [rates] as low as we possibly can throughout, not just the pandemic, but historically,” she concluded.

Through these strategies, Pasadena Federal Credit Union continues to provide an alternative to traditional banking that prioritizes member benefits, personalized services, and community involvement. The organization exemplifies the potential of credit unions to redefine the financial landscape in favor of their members.

Pasadena Federal Credit Union is located at 1285 N. Lake Avenue in Pasadena. For more information, visit pfcu.org or call 800.445.PFCU (7328).