Getting a credit union loan isn’t really any different than getting a bank loan from a regular bank. The one thing that confuses a lot of people is the credit union membership. You have to be a member of a credit union in order to use or receive any of their services. But if you don’t qualify directly for the specific credit union you are interested in, you may still be able to become a member.
Credit unions usually have specific requirements to be a member. For example, a Schools Credit Union requires you to be a member of the named school or school district. Others are tied to businesses, state employees, or just about anything else you can think of. But if you don’t pass the requirement test, there is another way to be a member. If you KNOW someone who is a member of the credit union you wish to join, they can refer you. It’s really that simple. As long as you’re referred by a member, you can become a member in your own right. And then you have an all access pass.
Many people use credit unions because their rates are quite often better than traditional banks. Because they are non-profit, they have more flexibility to use those would be profits to lower loan rates and raise interest rates on savings accounts. Essentially the members get the benefit.
So now that you are a member, how do you get that loan? If you visit your local branch and ask about a loan, they will point you in the right direction to get you started. Credit unions, like banks, offer a wide variety of loans. You can find vehicle loans, mortgage loans, home equity loans and credit cards.
With any type of loan application, the credit union is going to pull your credit history. If you are asking about a vehicle loan, they will need vehicle and insurance information. Same is true of mortgage and home equity loans. They will need to see information about your house and your insurance. You will also need to fill out the appropriate application which the credit union will provide you.
Some credit unions may offer some of their applications online so that you can fill them out in advance. Regardless, you should expect to spend some time at the branch itself. It takes time to process the paperwork, check your credit and get all the appropriate approvals. However, it’s not a particularly hard process.
For some, getting a loan is a stress filled endeavor. But it shouldn’t be. Lenders need to lend money. That’s what they do. You need to borrow money. So it’s simply a matter matching up your needs with their needs.