If you are in the market for a personal loan, you probably know they are popular because they are versatile and usually pretty affordable. You can use the funds however you’d like, and they typically have lower interest rates than a credit card or payday loan.
The tricky part is finding the right place to get a personal loan. It can seem overwhelming with banks, online lenders, and credit unions trying to get your attention. Credit unions usually provide some of the best options for personal loans in the market. This is because they are not-for-profit organizations owned by their members. They can offer the most affordable personal loan interest rates, and they have flexible terms. If you are looking for the best deal, you should consider walking in to your local credit union and applying for a loan.
First, let’s discuss what makes credit unions unique. Credit unions and banks offer similar products, but there are critical differences in how they operate. Because credit unions are not-for-profits, they can focus on the needs of their members. Credit unions take a personal approach to evaluating your loan. Typically, they are localized to a specific region or community to serve their members best.
If you are looking to get a credit union loan, you might need to take a few extra steps to quality. First, you’ll need to become a member. To become a member, you’ll have to qualify by meeting specific criteria. This is to ensure you will share some of the characteristics with the other members. When you fill out the application, make sure you have all of your personal information. Some of the requirements may include your identification, employment, household income, a down payment, and your credit score. Don’t be afraid to ask the credit union the requirements before applying. You will choose your terms and declare what you plan to do with the funds.
After you apply, a loan officer will review your application to see if you qualify. Credit unions are unique because they will personally review your credit reports and situation. Credit unions look at the whole pie and understand sometimes there are exceptions. A long-term relationship with a credit union will improve your chances for the loan. If they see you are managing your accounts well, they are more likely to overlook a blemish in your past.
It doesn’t take long to receive your loan after being approved. Usually, you can get an answer on the same day you apply and funds could be made available that day.
Getting a credit union loan is a great way to qualify for lower interest rates, and better service. Even though credit unions focus on a community, they offer just as many products and services as big banks. Your needs will be a top priority because of their not-for-profit status.