July 22, 2013

Credit Union Loans and Lending: Everything you need to know

Source: Many people are unaware of the fact that credit unions offer a variety of loans. Molly McCurdy of Star Choice Credit Union (6,000+ members strong) explained this in greater detail.

When it comes time to apply for a loan, many people make the mistake of immediately turning to a local bank they are familiar with or a national lender with a “big name.” While it is a good idea to consider both these options, don’t forget about another: a credit union.

If you currently belong to a credit union, this should be the first place you turn for a loan. If you are not a member, consider becoming one in the near future to ensure access to the best loan products when the time to borrow comes around.

Types of Credit Union Loans

The types of loans offered by credit unions can and will vary from one organization to the next. However, here are several of the most common:

  • Personal
  • Student
  • Mortgage
  • Home equity line of credit
  • Credit card

When you compare credit union loans to those from local banks, you will generally find one thing to be true: credit unions offer lower rates. Subsequently, you are in position to save a lot of money over the course of the loan.

Finer Details of Credit Union Lending

Now that you have your feet wet, let’s take a look at the questions we asked McCurdy and her detailed answers:

1. What are the benefits of a loan from a credit union?

First and foremost, credit union rates are lower. The only shareholders we have to please are our members. That’s why we consistently offer better rates as well as fewer and lower fees. Another benefit is the personalized member service. At Star Choice Credit Union, we know many of our members by name and don’t look at them as another account number. We are more in tune with our members and our local communities and strive to go above and beyond to please our members regardless of their financial situation.

2. Why are a growing number of small businesses turning to credit unions for a line of credit?

A growing number of small business are turning to credit unions for lines of credit as well as business accounts in general because we offer better rates and fewer fees. Big banks tend to fee small businesses more, simply because they aren’t as profitable for them. Credit Unions have much lower fees, and sometimes, like Star Choice, no fees at all for business accounts, which is extremely rare to find.

3. In terms of feedback, what is the main thing that people love about Star Choice Credit Union?

The number one comment we get from our members is our personalized member service. The moment our members walk through the door, we have a smiling face ready to greet them and attend to their needs. We take our time with each member to ensure all their needs are met and any potential issues have been resolved before they leave to ensure a positive experience.

Final Thoughts

As you can see, there are many reasons why individuals and small business owners are turning to credit unions for everything from auto loans to lines of credit and much more.

To go along with lower rates and fewer fees, these organizations are known for providing high quality customer service.

The next time you find yourself seeking a lender, regardless of the purchase you are looking to make, consider a credit union.

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