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Pros and Cons Credit union ?

  • 11-08-2014 4:58pm
    #1
    bob5666
    Registered Users, Registered Users 2 Posts: 202 ✭✭


    What are pros and cons credit union
    What they like for loans maybe 15 to 20 k
    Are there interest better that banks ?


Comments

  • #2
    Kalimah
    Registered Users, Registered Users 2 Posts: 1,323 ✭✭✭Kalimah


    You would want 4 or 5k in share balance before you'd get a loan of that amount. And for the most part you would have to have some repayment history with them. When I joined the credit union I had the bones of a grand in it before I got a loan. And it was only for 1500.
    Interest rates in my CU are 1% a month. Not sure how that compares to the banks.
    Personally I prefer dealing with credit unions as they're more flexible than the banks in my experience.


  • #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Here is where the point needs to be made again, that most CU's are difficult to compare. Some will charge 12% pa (thats your 1% pm), while others will charge 10%, 9%, and all the rates right down to 4%. I have even heard of one CU offering 0% for one particular reason.

    At this time of the year many CU's around the country offer discounted rates where money is borrowed for 3rd level college, The trend seems to be in the region of 5% to 6%. Yet your CU might well charge 12%.

    Bob5666….There are CU's offering loans at 15 to 20K, and many offering loans well above this level. It largely depends on whether there are available cash reserves, skilled lenders & management, whether the historic bad debts are well managed, and the view of the central bank on the abilities of the CU board & management to recognize their own strengths & weaknesses.

    Get to know what your CU will do for you. If you have shares in it, then you own it. You are not a customer. You are a member. The flip side is that if others have shares in your CU, they expect that their money will be loaned out carefully with a minimum but acceptable level of risk attached

    Get to know your CU and make sure they are acting in your best interests


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