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 that credit unions also charge fewer and less expensive fees to their customers. This behavior ties back again into their non-profit nature. They aren’t trying to make money off of you by grasping at every nickel and dime. That’s why it will cost less to close a loan and get your money more quickly.
- Their Range is Expanding
While many people believe that credit unions are a locally-based business, that isn’t always the case. Many credit union firms are becoming recognized nationally as providing excellent service at fair prices. Going to one of these credit unions gives you a more stable and reliable place from which to get a loan, particularly if you plan on moving shortly.
- First-Time Buyer Options
Last, but not least, credit unions provide people like you with first-time buyer bonuses if you are buying your first vehicle or home. In this way, you can save money and get the high-quality and tightly-focused loan that you need to succeed.
As you can see, there are many benefits of working with a credit union over a bank when getting a loan. So don’t hesitate to visit any of the branches in Houston and applying for a loan. It may just help you get the car or home that you need to improve your life.
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