What Types of Loans do Credit Unions Offer?
When it comes to loans, credit unions offer a lot of advantages over regular banks. They’re more flexible, come with better interest rates, and often come with better customer service, too. That’s why more and more people are moving away from traditional banking towards credit union banking.
So, what kinds of loans can you find at a credit union? Generally, credit unions offer all of the same loans that you’d find at a regular bank.
A credit union can make a great choice for personal loans. If you need a loan for your non-business life, a credit union can help you secure the funds that you need. Potential loans include auto loans, home loans, and other general term loans.
Credit unions also offer business loans. They make an especially appealing choice for small and medium-sized business owners who can get overlooked at megabanks. Credit unions may also appeal to entrepreneurs who are just starting to get their businesses off the ground.
As a matter of fact, some credit unions exist primarily to serve small business owners and entrepreneurs, which means that these business owners can expect to be heard and understood.
Lines of Credit
Next, credit unions offer lines of credit. With a line of credit, the credit union provides a member with a certain spending limit, and the member can always borrow from that limit as long as they have sufficient funds.
Say, for example, that the borrower has a limit of $1,000, and they borrow $500 against that limit. If the borrower repays the $500, then they go right back to having $1,000 to borrow from.
Credit cards are an example of a line of credit.
While credit unions offer the same services as banks, the difference is that credit unions don’t have customers. They have members. While banks are businesses, credit unions are nonprofit organizations. Everyone who uses their services has to become a member -- and by extension, a part owner -- first.
That brings us to another big advantage of credit unions: loans that you may not find at a bank.
Different credit unions serve different types of members. Some serve people from specific regions. Others serve people from specific industries. Some credit unions may offer loans that serve their members in particular.
For example, a credit union for musicians may offer stage equipment loans, while a credit union for teachers may offer a school supplies program.
Becoming a Member
The first step to securing a credit union loan is to become a member of a credit union, but which credit union is right for you? Bundlefi can help you figure it out. We connect people with credit unions and community banks. Thanks to Bundlefi, you can compare financial institutions side by side. Check out Bundlefi today to get started.