Credit union are sometimes amongst the best option for taking out a personal loan because it offers lower APR interest and charges lesser fees than a bank. Credit union typically does not have any hidden charges and you can easily find out all the fees it charges on its website. It does not charge unnecessary fees such as early repayment fee, and an annual fee that are usually charged by bank. The credit union will give you 1 – 5 years to repay an unsecured loan. For a secured loan, the repayment period can be as long as 10 years.
You can apply for a loan from a credit union online or at the local branch. There are some identification documents that you must attach with the application form such as ID card and SSN. Some credit unions require their applicants to hold the same job for a certain period of time. They will check the income proof you submit and make sure you are earning enough income to cover the loan payment.
Like a bank, the credit union will evaluate your credit report to learn about your payment history and the loans that you have applied in the past. They will take a look at your credit score to determine how financially responsible you are. Having a long history of borrowing and paying your bills on time can help you to easily get approved for the loan.
Getting approved at a credit union is much easier. The credit union has less complicated loan approval procedure and you don’t have to wait for 3 – 4 months for the loan to approve. The credit union can approve your loan faster and you can usually expect to get an answer of the loan approval within the same day. Once your loan is approved, you can expect to see the funds in your account in the next business day.
Having a good relationship with the credit union can increase your chances of getting approved for the loan. In case you need another loan, you can apply for the second loan with the same credit union and they will surely be happy to approve it and possibly give you a lower interest rate.
Many credit unions offer personal loans that accept cosigners. You can ask someone to help you by becoming a cosigner to your loan if you are unable to meet one of the requirements for the loan approval. The cosigner is the person who will put down his signature on the loan application to show that he is responsible in paying your loan in case you cannot pay the loan. When finding a cosigner, make sure he has a strong income so that he can back up and settle your loan.