what is the difference between a bank and a credit union?

Question

which one is more likely to aproove me for a personal loan?

Answer 1

Credit unions aren't for profit, they invest their money back into the community. I'd say you're more likely to get approved y a credit union.

Answer 2

I have heard with a credit union, they are not obligated to follow all the same laws a bank does. I have had a credit union since I've had my own bank account pretty much and haven't had a problem. They usually don't have all the stupid fees a bank does and they offer cool services and better interest rates. That has been my experience though. It probably depends on the credit union. Oh, and I did get my first car loan though one, which was a real hassle because I had no credit, being 19 years old and all.

Answer 3

I'm not sure about the loan thing but the difference between a bank and a credit union is this; banks are FOR PROFIT, credit unions are non-profit. I know because I'm a member of a credit union.

Answer 4

A bank are a bunch of lecherous Major Shareholders out to make gazillions.. Credit Unions are (Supposed to be) more community oriented - the shareholders are their customers, as a new client to a Credit Union, you are obliged to purchase one share upon opening an account.
As for where to get a personal loan, I'd go with the Credit Union, they are a lot more understanding. I have accounts with both banks and credit unions for different reasons, but as for a personal loan, I'd go with C.U.. They may not be quite as competitive in the rates, but are a lot more understanding should you by chance fall behind in payments or need to have some slack cut..

Answer 5

Credit unions normally offer higher interest on checkings, savings and CD's.

Normally for a personal loan, I have found a Credit union to be easier and more helpful.

For a car loan or a mortgage, most banks are quicker to receive funds and don't require as much paper work....

Answer 6

I've used a credit union for several yeas and I love it. As mentioned, CU is not for profit, so usually have less fees and better rates. It gave me a credit card and approved me for a car loan with awesome rates when I had absolutely no credit history. But neither me nor my mom got approved for a mortgage with them and we both easily got mortgages with banks. We both got turned down because of debt to income ratio. They are great, but don't accommodate higher risk loans. So I guess it all depends on your particular case, your financial profile and history, the loan, and probably the bank or credit unions (some banks are also tough to get loans with, you just have to find the right bank).

Answer 7

Credit Union!! If I were you I would get in one!! They treat you like a person not just another account! They work with you and will figure out what is best for you. A lot of times they have better interest rates and returns than big bank chains! I switched a few months ago and I am totally thankful for it!

Answer 8

Credit Unions are mutually owned by their depositors, and only make loans to their members. Because of this, credit unions do not pay income taxes. They presumably return their profits to their members in higher interest rates paid on deposits, and lower interest rates on loans.

Credit unions tend to be more liberal in giving personal loans, so, yes, you are more likely to obtain a personal loan from a credit union. However, because of their more liberal loan policies, they tend to be more agressive in collecting delinquent loans. So, make sure that you make all payments on time.

It will be helpful for you to know your credit score before you apply to have a clue whether you will be approved or not. There are many websites that will give you your credit rating free... (freecreditreport.com) among many others. The higher that number the better chance you have to obtain a loan (generally 650 and up, you will be approved)

Answer 9

A bank is a corporation that is either privately or publicly owned. A Credit Union is owned by it's members and/or clients.

You'll have a much better chance to be approved by a credit union if you own a checking and/or saving account at that credit union(s).

Answer 10

I think a bank is bigger....I've never joined a credit union, but I've heard good things about them...why not try out for a loan at each of them and take the best offer.