Saving Money for My Dream Home

If you want to get a loan, then the first place you should apply is a credit union. If you have only done business with banks and are unfamiliar with credit unions, then you will be pleased to learn there are many benefits of credit union membership.

Credit Union Membership Benefits

While banks are for-profit businesses with investors, credit unions are non-profit and privately owned by their members. This means when you join a credit union you are then in a small way one of its owners.

Since credit unions don't have corporate investors to please, they are able to offer lower borrowing rates and higher savings rates to their members.

In addition to more competitive loan and savings rates, credit unions also offer much more personalized service.

For example, when applying for a credit union loan, the loan officer at your local credit union will take your entire financial picture into consideration instead of just your income and credit score.

Credit Union Membership

To apply for a credit union loan, first, you will need to become a member. While some credit unions allow anyone to join, others have specific membership qualifications, such as:

• your employer
• past or current military service
• the county you live in

In addition, some large professional organizations have affiliations with credit unions.

The membership application process is similar to opening a checking or savings account at a traditional bank. You will fill out an application and are asked to pay either a small membership fee or place a certain amount of money into a credit union savings or checking account.

Types of Credit Union Loans

While the loan offerings at individual credit unions vary, they generally offer loans of many different types.

Some of the most common are:

• automotive loans
• home purchase loans
• home refinance loans
• debt consolidation loans
• home improvement loans
• personal loans

Additionally, it's notable that not all credit unions will have the same interest rates, fees, or approval process. For this reason, it makes sense to shop around and compare.

Credit Union Loan Perks

As a bonus, some credit unions offer special loan perks.

For example, if you become sick or unemployed, the credit union may suspend your payments. Other credit unions have loan perk programs where they forgive your last payment once you've successfully made all of the other payments on time.

Denied Credit Union Loans - All is Not Lost!

Finally, it's important to note that not everyone can qualify for a credit union loan. However, if you find yourself denied to lack of income, bad credit, or no credit, then don't panic!

Most credit unions want to work with you and you may be able to get your loan approved by having a friend or family member with an excellent credit score co-sign for you. For more information on credit union loans, contact a professional near you.