Credit unions signature loans are best for consolidating high interest debts because of their low-interest rates. Credit unions signature loans usually feature interest rate starting from around 7%. The fees that they charge are also considerably lower than bank charges.
There are various types of credit unions such as community, college, group, military and federal credit unions. Each type of credit union has their own requirement in joining the membership. In most areas almost everyone can join the credit union, although certain credit unions will have some restrictions. There are a few requirements to fulfill, for example, be employed at a certain company, or live in a certain area or study at a certain college/university. You may be required to open a savings/checking account to fulfill the membership criteria. There may also be a small membership fee to pay.
Credit unions strict stricter eligibility criteria. They don’t have so many procedures to follow when checking your loan application. It takes only 1 week or so for them to check your signature loan application and approve it. They also can release your funds fast for example in 1 – 2 weeks after the loan get approved. If you get rejected by the bank for a loan, you can go to a credit union and submit your application. There is a higher chance of loan approval when you apply at a credit union.
Credit unions put emphasis on good customer service. It is easier to ask for an appointment with the manager and discuss with him your financial issues. For example, if you have a poor credit score, the manager would be willing to discuss with you and arrange for a favorable interest rate and repayment term.
You can get awarded with a loan easily when you have good credit history. You can try applying with 1 – 2 credit union for the signature loans. This can prevent too many credit inquiries to be made on your credit report. Performing too many credit inquiries can minus a lot of points in your credit score. Before applying, always check with them the interest rate as well as the fees that you are responsible for paying. This allows you to calculate the estimate cost and decide whether it is worthwhile for consolidating your debts.
When you get the funds, you can use it to pay back your creditor. You only have a single payment to make when you consolidate your debt with credit union signature loan. The most important thing is to pay back the credit union every month by the due date. As you promptly clear the monthly repayment, your credit score will also slowly increase. In the mean time, you should stop spending money on your credit card or apply for additional loans until you pay off the debt consolidation loan.