A personal loan is a great way to get the money you need when you need it. Many of those looking for a loan will automatically go to a big bank, but did you know that credit union personal loans could be the better way to go? Here's what you need to know.
The benefits of taking a personal loan from a credit union
1. Credit unions offer lower interest rates than big banks. For example, a credit union loan with an interest rate of 7% will typically be less expensive than a loan with an interest rate of 10% from a big bank.
2. Credit unions typically require less documentation than big banks when applying for a loan. This is likely because credit unions know that the vast majority of their loans go to local community members.
3. If you have bad credit, you may still be able to get a personal loan from a credit union. Credit unions typically require a lower credit score than big banks.
How to find a credit union in your state
1. Go to the National Credit Union Administration (NCUA) website. This is the federal agency that regulates credit unions.
2. Search for your state by county or zip code. This will help you find a local credit union that serves your area.
3. Call or visit the local credit union branch to learn more about its services and how to apply for a loan.
How to get a personal loan from your local credit union
1. Sign up for a checking or savings account first. Most credit unions will have more favorable interest rates and be more willing to approve someone who's already a union member.
2. Get your credit report up-to-date and in good standing. This will help your credit union assess your ability to repay a personal loan.
3. Review the loan terms and conditions carefully. Most credit unions offer borrowers various options, such as fixed interest rates or adjustable-rate loans that can change depending on the market conditions.
4. Go into a branch instead of applying on the website and speak to a staff member. While you're free to apply online, going in person before applying can help answer your questions about your eligibility, loan terms, promotional offers, etc. Speak with a representative that's at a cubicle instead of a bank teller, as they'll typically be the ones handling your application and help guide you through the application process.
5. Apply for the loan and provide documentation of your income, assets, and debt obligations.
6. Have proof of your residency - A utility bill, driver's license, or other acceptable documents will suffice.
The bottom line
Credit unions offer a range of loans and credit products that can be a great way to get the money you need without going through a traditional mortgage lender. By researching and understanding the loan terms before applying, you'll have a better chance of getting approved and getting the best possible loan deal.
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Original Source: Credello: How to Get a Personal Loan From a Credit Union in Any State