A lot of people think that banks are the only legal places where you can turn if you need a loan. This is completely not true. Same people are asking themselves what options they have if it’s not for the banks?
The truth is, you really should avoid working with banks and asking for loans from them. They should be the last place to turn to if you need money. However, people don’t realize this, and they are stuck with giant corporations who are only interested in profit and not the need of the simple citizen. Take a look at this interesting article to see why some people think corporations are bad for the simple man.
The alternative is called credit unions. Everyone should know about this option. In this article, we’ll explain what credit unions are and why are they good for you.
What are Credit unions
A credit union is a not-to-profit organization. Not everyone is eligible for a loan in every union. They have strict rules about who can be their member and enjoy their benefits. Some of the often requirements are location, special kind of employment, student status, or other.
They are privately owned and often the organizing body is made of members who are also a part of the union. They have much better options than banks. For people who are part of them, the options are excellent.
Why are they good?
Unlike banks, credit unions can provide loans with much better terms than anyone can. The not-to-profit term that we already mentioned means that these organizations are not there to make more money. They are more into doing good for the society and the citizens. Of course, you still pay interest on the loans, but under much better terms. You can check here and see why banks are not the best option.
Clients are actually members
Being run by the members and the owners, it’s like buying coffee in your own coffee shop. When you enter the offices to ask for a loan or to talk about some opportunity you feel like home. The people there know you and are open to offering all the help possible.
The situation in banks is quite the opposite. The employees there will only try to convince you in getting a loan that’s good for the bank but not so much for you. In the credit unions, you know that the people there are doing the best they can to make you feel comfortable not just at the moment, but for the years to come.
Lower interest rates
The best part of avoiding big guys and getting loans through credit unions is interest rates. The interest is the base through which banks make profits. They are ready to give you any kind of credit, but the interest rate will make you repay the loan and lose at least 1/4 more of the money you borrowed.
Here, the interest rate is much lower because these institutions are not trying to profit off you. Here’s a profile of such an institution where you can ask the questions you want to know.
When signing the contract for getting a loan, you might or might not know that you’ll have to face some additional fees. These fees are often not small. Quite opposite, these charges are often portrayed by the competition with the smallest print possible in order for the client to think that there are no additional fees until it’s too late.
Here, you can be sure that these fees are smaller and won’t be written in small letters so you don’t know what are you paying for. The person in charge of your case will explain fairly what you need to pay and how much it will cost you. They will also suggest ways about how to pay them with the least pain possible.
If you thought that you have no alternative, be sure that you were wrong. Even if you’re not eligible for any credit union, you always have other institutions giving away loans for everything you might need. Look for the market and see the best options for you.