When you have a less-than-excellent credit score, finding financial assistance from a private bank can be a true challenge. Luckily, credit unions offer such applicants a viable path to a solid loan. If you’re wondering what these lenders can do for you, consider these benefits of turning to a credit union.

Why It Pays to Get a Loan From a Credit Union

1. Low Interest Rates

Unlike traditional banks, credit unions don’t operate to make a profit. Instead, their goal is to establish a community among their members. As a result, their interest rates are remarkably low.

For example, according to the National Credit Union Administration, the 2020 National Average Rate for a new car loan was 3.32% for credit unions and 4.99% for banks. Whatever you’re borrowing for, you’ll pay closer to the amount that you took out and less interest in the long run.

2. Lenient Criteria

If you’re having trouble getting approved for a loan because of a fair or poor credit score, you can turn to a credit union to give you a second chance. Instead of simply looking at your on-paper criteria, these institutions take all your circumstances into the picture.

Plus, since you need to pay a small fee to become a member of a credit union, they will treat you like part of the community and be more willing to welcome you into the fold.

3. Affordable Repayment Plans

When you turn to a credit union for a loan, you can avoid the stress of a strict repayment plan. You won’t be charged hidden fees, so you don’t have to worry about unexpected overdrafts.

If you’re having trouble repaying what you borrowed, the credit union will work with you to come up with a solution. Through this cooperative system, the lender finds a way to collect their dues without leaving borrowers out in the cold.

If you’re interested in seeking a loan from a credit union, turn to Alliance Credit Union of Fenton, MO. Since 1948, they’ve been managing funds and lending a helping hand to individuals throughout the St. Louis area. When you apply for a loan, you’ll be surprised by how quick and easy the process is. Should you become part of the credit union, you’ll have access to a convenient online banking platform and zero hidden fees. To learn more about their loan offerings, visit their website or call (636) 343-7005 to speak with a friendly employee.