Why The Credit Union Loan Offers Low Rates and Great Terms
Doug Smith

Defined Tag: Credit Union Loan.

Some consumers feel the credit union loan offers the lowest interest rates and best repayment terms than any mainstream bank can offer. What are the reasons for this hype about this type of savings institution's lending, and is it true?

The main reason is due to the extremely low interest rates that the credit cooperative can offer to its borrowers. You may not believe your eyes when comparing the annual percentage rate (APR) from a thrift union's cash loan to a commercial bank's loan terms. Lower interest rates can save hundreds or thousands of dollars over the life of a loan, so loans from thrift cooperatives are definitely one financial lender to consider before your next large purchase.

These banking concerns can offer loans on anything that a regular bank can. They can finance cars, trucks, houses, real estate, boats and other high-priced items. There is one big catch, however. You must be a member to get a loan from them. Therefore you must join the "thrift bank" before you submit a loan application. Joining is not usually too difficult, but the trick to joining these unions is that you must meet the criteria on which the union was founded.

If the cooperative bank services teachers, then you must be a teacher to become a member. If it is an autoworker's financial union, then you must be an autoworker to be accepted as a member. All unions have a central profession or theme that their members have in common, and you must be a part of that community to join and get a loan from the credit cooperative. These common themes are called the common bond, bond of association, field of membership, or even Select Employee Group (SEG) depending on which country your thrift union resides.

There's no reason to try to trick your way into a credit cooperative if you don't meet the criterion. Simply find one to which you have something in common, and join that one. If it's not near your home or office, all you really want is to join it and get the credit loan. You can continue doing your routine banking at whatever location is convenient for you.

Check the phone book and especially the internet to find lending unions comprised of members of your profession, hobby, company, religion, or even neighborhood. It should be easy to find one that will accept you as a member, and you'll be well on your way to the huge savings that the credit union loan can offer.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. Not Intended As Professional Advice.