How to get a Personal Loan from a Credit Union
Posted: May 9, 2023 in Credit
A credit union loan can help you consolidate your debt, pay for home improvements, and cover unexpected costs - all with a personal loan. It’s quick and easy to apply, plus you can find a monthly payment that fits your budget at a competitive interest rate. In most cases, personal loans are funded the same day without the need to pay origination or prepayment fees.
You can apply for either a secured (with collateral) or an unsecured personal loan (without collateral). Your interest rate will vary based on the loan type, credit score, debt obligations, and credit history. Your loan terms will generally be better if you have a higher credit score.
Credit unions such as ProFed Credit Union consider credit scores important in determining creditworthiness. However, a low credit score may not prevent you from securing a loan. Credit unions take into account your entire financial picture when reviewing your application. This is how credit unions in Northeast Indiana operate, but the process, qualifications, and rates will vary.
To finalize a personal loan at a credit union, you will need to become a member first. When scoping out a trusted credit union, it’s essential to understand they are often localized to a specific area.
Advantages of Borrowing Money From a Local Credit Union.
Less stress, more time: Qualifying members enjoy fast loan approvals, reducing stress and overwhelming emotions associated with financial burdens.
Increased trust and credit: Once a loan is approved, there is a degree of trust between the borrower and lender. Through ProFed Credit Union’s low-interest rates, high saving rates, and other benefits, we make it easy for qualified members to secure loans. Consistently paying your bills on time is important to build trust with your credit union and improve your credit limits.
Higher Savings: Credit unions do not operate as commercial banks. Therefore, they have lower fees and higher interest rates on a savings account.
Lower Interest Rates: Low-interest rates from local credit unions can help you save money and stress. Anybody looking to purchase a car or home or start a business can benefit from being a credit union member.
How to Get a Personal Loan from a Credit Union
Before you finalize your loan, you need to join a credit union. Each member is a shareholder of the credit union. The registration process to become a member at ProFed is simple, quick, and easy.
Eligibility requirements: You must meet specific criteria to become a member at ProFed. You are eligible if you live, work, worship, attend school, volunteer, or regularly conduct business in Adams, Allen, DeKalb, Huntington, LaGrange, Noble Steuben, Wells, and Whitley counties.
Opening deposit: After you find out if you’re eligible, you can become a member by opening a new account and depositing a small amount - it only takes five minutes online. Once you're a member, you're ready to apply for a loan.
Loan Application Process from a Credit Union
ProFed Credit Union’s friendly lending specialists are here to help you navigate the entire loan process, from your initial inquiry to the final signing of your documents.
Initial inquiry: One of our lending officers can talk to you over the phone or in person about your requirements. We will discuss where you are in your loan journey and provide the information you need to take the following steps. You can usually find current interest rates and calculate payments online to know if the loan payments will fit within your budget. Also, remember, since every credit union is different, the documents you need may vary from one financial institution to another.
Application: Apply online at your convenience 24/7. Apply over the phone by contacting our lending team Monday through Thursday between 9 and 5 PM and Friday between 9 and 6 PM. Or set up an appointment by visiting a branch to meet with a member of our lending team. They will submit your application.
Post Application: Once your loan application is received, a loan officer will contact you as soon as possible to review your application and let you know if additional documentation or information is required.
Waiting for the Decision on Your Loan
You can expect a quick approval process. Sometimes, the funds are disbursed after you apply for the loan and sign the required documents electronically.
Do not panic if you are not approved for a personal loan. Take a look at the reasons behind the denial. A lender may deny you because of a problem with your credit or income. If the disapproval were a direct result of the information in credit reports, you would be sent an adverse action notice that details what caused it and what you can do to rectify it. Double-check your credit report to find any inaccuracies. Make sure you reduce your other debts to increase your ability to borrow. Be sure to make your monthly payments on time. After completing all the required adjustments, you can reapply for a personal loan.
If you have questions, ProFed Credit Union can help you find a loan that’s affordable, flexible, and fits your budget. To get the process started, call us or schedule an in-person or virtual appointment online. Also, check out our personal loan rates here.
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