For years, there has been a debate about whether banks or credit unions are the best bet for getting a high-quality loan. Anyone who has attended one of the many great Houston credit unions in the area has likely already received a great loan. Here are just a few reasons why you should work with credit unions over banks when getting a loan.
- Credit Unions Offer Fairer Rates
A high-quality credit union will offer you fairer rates than a bank due to the way they are designed. Credit unions work as a non-profit institution. Rather than trying to make money at your expense, they want to make money for you. As a result, they provide more reasonable and fair interest for their customers. You can expect rates as much as 10-20 percent lower than that of the average bank.
- They Work With Many People
A conventional bank is likely to turn you away if you have a bad credit score. That typically doesn’t happen at a credit union. They are a lot more liable to take a chance on a person with a low credit score, as long as they feel comfortable investing in them. Their non-profit state means they aren’t as worried about a bad loan affecting their bottom line. As a result, they are more likely to provide you with the kind of money you need to get back on your feet.
- Fees are Typically Lower
While we already mentioned lower interest rates, it is important to remember …