3 Different Types Of Loans You Can Get At A Credit Union

Monday, September 14th, 2020
man in suit shaking hands with a woman

There are many different types of loans available at financial institutions. At credit unions, they are often a little different than regular banks in that their rates are lower. Find out more about three of the most common types of loans credit unions offer below.

Auto loans

You can get auto loans at credit unions as well as a variety of other places like banks and even dealerships. These are a type of closed-end credit, which means that money is given for a specific purpose and the payments will last for a specified time frame.

woman in silver car smiling and holding out keys

Rates for auto loans vary depending upon where you get one, your credit, and more. But, you are highly likely to get better rates at a credit union. Many credit unions will not lend money to non-members, but you will find that most have relaxed membership requirements. By choosing a credit union for your car loan, you can get a preapproval and eSignature service to make things more convenient.

Home equity loans

Credit unions offer this type of loan to members who have more value in their homes than they owe. The money can be used for renovations, paying off other forms of credit, or just for personal use. There are many benefits with home equity loans including lower rates, higher amounts, flexibility, and fixed payments. Qualifications are often similar or the same as a normal home loan.

woman smiling and holding out many one hundred dollar bills

Personal loans

This type of loan is exactly what it sounds like. Credit unions (and other institutions) offer them for members to use for anything, including debts, vacations, and schooling. The terms depend on your credit history, but also your reliability because there is no collateral. Personal loans used to be more common (and more personal) but with the growing popularity of big-name banks, things have changed.

For many institutions, giving out personal loans can be risky. Some only lend out unsecured money to their most trusted members. However, a lot of credit unions are able to provide low-fee personal loans to their diverse pool of members.

Loans from Borger Federal Credit Union

The above are just three types of loans that credit unions offer. At Borger Federal Credit Union, we offer these and more. Our goal is to meet the financial needs of all our members, whether it’s money for a new vehicle or a much-needed vacation. We also offer a variety of helpful Services to make the process of getting and maintaining a loan easier. These include eSignature, eStatements, and financial education.

Curious about getting a Loan with BFCU? Give us a call at (806) 273-9506 to see how we can help. If you aren’t a member yet, don’t worry: it’s easy to become one! If you live, work, worship, or attend school within Hutchinson, Carson, or Gray counties, you can Join the BFCU family!