Are you thinking about obtaining a personal loan? You may need this loan to help cover the cost of an emergency or help you consolidate your debt. No matter your reason for wanting the loan, you likely know that you'll need to find a reputable lender willing to provide the funds needed with the ideal interest rate. In that case, it's often best to choose a credit union. Some lending companies are predatory, but credit unions are for the people and will work with you instead of against you. Check out these top three reasons to apply for a loan with a credit union!
1. Improved Approval Odds
Sometimes, getting denied a loan is possible because of your credit history or lack of one. However, if you're already banking with a credit union, they're more likely to approve your application while trusting you to pay the loan back on time. As a result, you have a better chance of getting approved without frustration and can then use the funds as needed to cover different expenses.
2. Lower Interest Rates
Not all lending companies are equal. While some are predatory and offer loans with extremely high-interest rates (upwards of 28 percent), credit unions tend to care about their clients and want to provide them with the best options. Credit union rates are often significantly lower and much more doable. While the actual rate you receive may depend on different factors, such as your credit score, you can still avoid those super high rates by going through a credit union instead of any other financial institution. Before you apply for a loan, you can reach out to a representative for the credit union to get an idea of the rates charged for loans because some credit unions charge even less than others.
3. A Personal Touch
Dealing with big banks is often time-consuming and frustrating. You might feel like you're getting passed around from one person to the next, never speaking to the same person when inquiring about the loan or completing the application process. However, credit unions offer a more personal touch. You should be able to speak with the same person throughout the process who will go over the loan requirements and answer any questions you might have before receiving the funds.
If you're considering applying for a loan, go with a credit union instead of other financial institutions. Credit unions are there for the people and have their best interests in mind. It's the best choice to get the funds you need without extremely high-interest rates.
Reach out to a credit union such as Together Credit Union to find out more.
