You’ve set your eyes on a new house, a car, or that dream vacation or other personal expenses. Securing a loan is your next big step. Banks typically offer loans to help you finance these big purchases, but so do credit unions. As opposed to traditional banks, credit unions offer unbeatable rates and will take the time to give you the best offer as they help you obtain a loan that works to your advantage. With credit union loans, you can be assured that the process will be transparent and honest with straightforward terms, and no hidden fees or administrative charges. Securing a loan is a huge financial step. If you are still weighing your options and looking for a good deal, here are a few reasons why a credit union loan is the best option:
Lower interest rates
When it comes to loans, one thing you should pay careful attention to is the annual interest rate. You don’t want to go deep into debt because of a surprisingly high amount of interest that is added on top of your loan amount. Of course interest rates vary based on your circumstances and your credit score, but compared to other licensed lenders and credit cards from banks, credit unions are a much wiser option.Credit unions offer loans with fair interest rates, which correspond to affordable monthly payments.
Taking out a loan requires commitment. While monthly payments are not necessarily considered an expense but a reduction of a liability, the interest you are paying on top is an added expense. It’s best to take out loans only when necessary and when you are able to commit to repaying off the loan for a certain duration. As much as we may want to avoid having to take out a loan, unforeseen expenses can occur and can cause your finances to take a dip. Times like these can be rough, especially when expense start to pile up. Credit unions understand that these circumstances can occur and tend to be more forgiving in times of trouble. Another great thing about credit union loans is the flexibility, for example in cases where you are able to pay the loan ahead of time or need to restructure your repayments. Credit unions can help find alternative ways to make your repayments adapt to your circumstances and financial situation.
Human-assessed loan Application
Many banks determine the approval of loans applications based on standard qualification procedures. These often include your credit history, cash flow and collateral, among other factors. Looking at these objective data alone can make or break the approval of your loan. This can mean bad news to those who have a less than appealing credit scores and those who are still working on managing their finances. Luckily, credit unions adopt a more subjective approach to loan applications. Loan officers take into consideration all of the various reasons behind each loan application and try their best to get your loan approved based on your individual circumstances and ability to pay back the loan. So, if you are looking for a human to hear about your circumstances to get your loan approval considered, credit union loans are your best bet.
Straightforward and Honest
Credit unions are not-for-profit institutions that exist to serve the members of their community. With credit unions, you can trust that your loans will not carry any hidden fees or processing charges. The final cost to which you agreed and signed is the actual cost you’ll pay. You can rest assured that the terms and conditions are very straightforward. Credit union loan officers will also be glad to review the fine print with you in case you have questions or need clarification.
Accessible Online Enquiry
When it comes to loans, the online loan enquiry tool is your best friend. Most credit union websites have this available. This tool provides an online service where you can check the loan APR rate and the cost of credit for the loan amount you input. You can also get more information about the loan when you find a loan that’s suitable for you by submitting a request on the credit union website. A loan officer will get in touch with you and walk you through the next steps of the process, all from the comfort of your own home.
Taking out a loan is a big financial decision, and it’s one that you should make with a trusted financial partner. Calcite Credit Union has your back for any of your financial needs, from credit cards to savings accounts, and a wide variety of loans and mortgage options for select areas around Michigan. Visit us at calcitecu.com to learn more!