Do Credit Unions Give Loans?
Tuesday, Jul 14 2020
When it comes to borrowing money from a financial institution, traditional banks are the typical go-to with independent lending companies not far behind. But with strict guidelines for obtaining a loan few applicants obtain a loan successfully. Banks and lenders reject the majority, and those people believe this is the end of their loan search. Don’t give up. A credit union will offer financial assistance when larger institutions don’t believe you’re a good fit.
Do Credit Unions Give Loans?
Of course! Become a member of a credit union and open an account with us at Focus Federal. There are a few guidelines to meet before you can become a member. Location proximity, family ties, job connections, and the church you attend are all ways to become a member. After becoming a member, open a checking or savings account with us and start your loan application.
The loan process is the same as banks and lending institutions. Fill out the application in-person or online. Supply identification, proof of income, and proof of employment. Proof of employment tells the credit union money is available. Proof of income proves there are enough funds for a down payment and monthly payments. Credit unions use identification to search credit scores and credit history, completing a member’s financial profile. Improve chances of approval by maintaining good financial habits with the credit union.
How Do Credit Unions Give Loans Differently?
1. Loan Customization
Credit unions offer secured loans and the traditional unsecured loan types as well as co-signer and signature loan types. Secured loans offer collateral in exchange for a loan as it builds credit and trustworthiness with the credit union. Unsecured loans require good credit and stable income for loan approval. Co-signer loans require a second person to verify that the member will repay the loan. Signature loans require a promise of repayment and a signature before receiving the loan.
2. Application Approval
The requirements for credit union loan approval don’t rely solely on credit scores. Bad credit score and no credit score applicants are also eligible for loans with our Fresh Start Program. Plenty of people with bad or no credit scores receive loans at credit unions because we look at the member’s use for the loan as well as the financial aspects. We prefer well-rounded results over one portion of a person. This leads to the next point.
3. Customer Care
The customer comes first at a credit union. We are a non-profit organization, meaning all profits become dividends or investments toward the credit union and the members. The members are crucial in a credit union’s success. They become part-owner of the bank and vote on issues that matter to the credit union. Because we focus on our members over the bottom line, members can expect to obtain a loan with less red tape than traditional banks.
4. Community Oriented
Credit unions are woven into the community. Members give credit unions a local feel. Conversely, credit unions help local businesses with their financing, contributing to job growth. Credit unions give back to local charities and partner with those charities to improve the community through activities and events. Credit unions also educate people in the community about financial topics such as budgeting, saving, spending, and credit card use through classes and seminars online and in person.
Do Credit Unions Give Loans Better than Banks and Other Lenders?
Yes, and it’s not even a close comparison. Banks and third-party lending companies focus on computer data for decision-making. Credit unions focus on you just as much as the data. The benefits of credit union loans are lower interest rates and flexible loan terms. Plus, at Focus Federal Credit Union we hold financial education courses and provide access to one of our Financial Services Representatives.
All interest rates are capped at a certain percentage at credit unions regardless of a member’s credit score or history. The members who are budgeting or want to save money on interest benefit greatly. Meanwhile, not only are there no limits in interest rate percentages, banks and lenders punish bad and no credit borrowers with higher interest rates. Loan terms are decided by the credit union and the member’s needs, hence the flexibility.
What Loans Are Available at Focus Federal Credit Union?
While most banks and lenders customize loans for their needs, credit unions loans are tailor-made for our members. Focus Federal is no different. Loans at Focus are divided into three categories: vehicle, home, and personal.
In the vehicle category, we offer traditional auto loans, fresh start auto loans, and collateral loans. Use the loan on new and used vehicles such as a car, truck, van, SUV, and motorcycle. Listed under the home category are mortgages, storm shelter loans, and home equity lines of credit.
When it comes to personal loans we have many options to suit our member’s needs. And we also offer credit cards. If you’re looking for cash loans, we offer a traditional personal loan, a fresh start loan, and a credit builder loan too. With personal loans, members can use the loan for whatever they wish. Ideas include a vacation, a wedding, a college education, a home improvement project, or to pay down debt.
Why do credit unions give loans? Simply put credit unions like Focus Federal, care about our members, and our community’s financial stability. Every member deserves a chance to start over, to get out of debt, to protect their home, to rebuild their credit, to own a vehicle, and to have fun. Focus Federal Credit Union is a credit union with over 65 years of customer service satisfaction and offers financial advice with a personal connection.
Contact us about obtaining one of our loans. It’s very easy to become a member and open an account at Focus. New members can apply for a loan immediately. Begin a new chapter in life with Focus Federal by your side.