In many situations, a credit union is only open to residents that live in a number of counties in the state or nearby states. You must first become a member of the credit union in order to get a loan. Relatives of the members can also be eligible for the loans. There are a number of criteria that you must meet before you can become a member.
Aside from the place where you live, they may also require you to hold an occupation in a certain industry, or work in a particular company. You will be surprised at how easy it is to become a member of a credit union so you should not give up in trying to sign up. The main advantage of credit union loan is the competitive interest rate, shorter loan approval period and it does not have as many fees as bank loans.
On the other hand, bank can offer loans to anyone regardless of which state they come from. Many major banks have branches throughout the USA. Bank loans are harder to obtain especially if you are borrowing a large sum. They will check various sources to make sure that you are able to repay your loan.
Both bank and credit union loans can be applied online nowadays. To apply for the loan online, you must first visit the credit union/bank site and navigate to the type of loan that you want to apply and fill in the online form. You will have to upload documents. After you submit the loan application, you will be able to check the status in the account.
You can contact the credit union or bank via the toll free telephone number if you want to learn more on how to apply the loan online. It is important to always read the fine print that contains information on the full disclosure of the loan. You should check the repayment term and the monthly payment deadline so that you know whether you are able to cope in repaying the loan.
Your credit score affects the interest rate that you are offered so you should make the effort to check your credit report and see if there is any chance for you to find an error that you can dispute with the credit bureau. There is a big difference in the interest rate that you pay depending on your credit score level. Having a low credit score can mean that you will pay an additional 20% for the interest rate.
As a rule of thumb, you should never take out a loan that you know you cannot afford to pay back. Before you apply the loan, you must sit down and do some calculations to determine how much monthly payment you are able to handle. Doing so can prevent you to become a victim of a debt cycle.