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Credit Union Loans: Are They Worth It?
Credit unions offer a variety of different loans, including mortgages, home equity loans, home equity lines of credit (HELOCs), credit builder loans, and more.
Getting a loan from a credit union should be your first consideration when you’re in need of a loan. Most credit unions, including the Credit Union of Southern California (CU SoCal), have more flexible lending requirements than traditional banks. This is because credit unions are member owned and non-profit, and can offer quick approvals and competitive rates that are lower than bank rates.
Call 866.287.6225 today to schedule a no-obligation consultation and learn about our home equity lines of credit, auto loans, personal loans, checking and savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all of your banking needs.
Read on to learn more about how to get a loan from a credit union.
What Is A Credit Union?
Credit unions are financial co-operatives that provide loans and savings to their members, just like traditional banks, but typically on much better terms. That's because banks are obligated to their shareholders and not their customers, whereas credit unions are owned by their members who use their services, so their well-being is of primary concern.
Unlike banks, credit unions use their profits to help members by providing them with low interest loans, higher interest savings accounts, and other financial services that help members save more, spend less, and improve their credit.Learn more about credit unions.
Benefits of Credit Union Loans
If you’re curious about how to get a loan from a credit union, you’re in the right place. First we’ll talk about all the main benefits of getting a loan from a credit union.
Lower Fees. Lower service charges or even no services charges are possible on all types of accounts because credit unions use their profits to reduce costs for members.
Quick Approval. While a Credit unions may have many branch offices and thousands of members, credit unions often have more streamlined operations than banks. This makes applying for and receiving a loan easier.
More Flexible Terms. At CU SoCal, you’re more than a credit score and we’ll help you, best as we can, to get the loan you want. This is how credit unions operate, by looking at each individual member’s unique financial scenario and exploring ways to make it happen.
Traditional banks don’t have that kind of lending flexibility, and people with a low credit score often get turned down for a loan. At CU SoCal, you may be able to get a personal loan with bad credit, get a car loan with bad credit, or lease a car with bad credit.
Types Of Credit Union Loans
All credit unions provide a wide variety of loan options to meet their members’ wide ranging needs. Types of credit union loans include:
Auto Loans. Most people will eventually need a loan to purchase or lease a car. Credit unions also provide truck, boat, and motorcycle loans. CU SoCal offers these loans with no application or funding fees. At CU SoCal you can even get a car loan with bad credit.
Recreational Vehicle (RV) Loans. Whether you’re looking to take a short road trip or travel long-term, there’s a special loan just for financing RV purchases. Learn how to finance an RV.
Mortgages. Credit unions offer a wide variety of mortgage loan options (and mortgage refinancing) with low interest rates and lower closing costs than you can get from a bank. Credit unions can also help you save money to buy a house.
Home Equity Loans. These loans, paid out in a lump sum, let homeowners use their home equity to get the money they need to make home renovations and pay for other expenses. See how home equity loans work.
Home Equity Line of Credit (HELOC). With a home equity line of credit, homeowners have access to funds for any purpose. While home equity loans are paid back with interest on the entire loan amount borrowed, with a HELOC you only pay interest on the amount you actually use. Learn the difference between a HELOC and home equity loan.
Personal Loans. If you need cash quickly credit unions can help! Personal loans can be used for a variety of purposes, but are typically for personal expenditures, like paying medical bills, consolidating high-interest debt or covering a large expense, such a wedding or college tuition. Learn how to get a personal loan.
Credit Builder Loan. A credit builder loan is a great option for individuals with less than optimal credit or no credit history at all. When you’re approved for the loan, the loan amount will be deposited into an account for you, and each month you will make payments toward pay-off of the loan. Your payments are reported to the three major credit bureaus (Experian, TransUnion and Equifax) and a good credit history is established. Of course if you do not pay on-time, your credit will be damaged. Read more about credit builder loans.
Investment Property Loans. Credit unions can help investors increase their real estate portfolio. CU SoCal offers investors loan amounts up to $5,000,000, fixed- and adjustable-rate programs, limited fees at closing, funding in as little as 45 days — half the time of a typical investment loan, and more! See all the benefits of an investment property loan.
Credit Union vs. Banks vs. Online Lenders
There are two major differences between credit unions and banks:
1) There is usually no restriction on who can get services from a bank, whereas most credit unions have membership requirements to join.
2) Banks are almost always for-profit institutions, and while they tend to offer competitive, low-interest rates for loans, they almost always have higher fees than credit unions, which are member-owned not-for-profit organizations.
Online or digital lenders can be a reliable source for attaining a mortgage or personal loan, however, they are not regulated to the extent that traditional banks and credit unions are regulated.
Whereas many states have set interest rate caps, online lenders can avoid these caps by partnering with federally regulated banks, which are generally not subject to state rate caps.
There are numerous benefits associated with joining a credit union and getting a loan from a credit union. Learn more about Credit Unions vs. Banks.
Are Credit Unions Safe?
Credit unions are safe and backed by the National Credit Union Administration (NCUA), an independent agency created by the U.S. government to regulate and protect credit unions and their owners. Just like the FDIC, which insures banks, the NCUA provides up to $250,000 insurance to all credit union members.Learn more about credit union safety.
How To Join a Credit Union
Credit unions typically only allow membership if you belong to a particular organization, work for a certain employer, or live, work, attend school or religious services in a certain geographical area. Anyone who lives, works, attends school or religious services in Los Angeles, Orange, San Bernardino or Riverside Counties can join Credit Union of Southern California.
Learn more about CU SoCal Membership.
Join now in three easy steps!
Why Savvy Consumers Choose CU SoCal
For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.
