Credit Unions?

Question

Hello,

I would like to get a personal loan to pay off my credit cards. My credit is not that good, so does anyone know the chances of me joing the local credit union and securing a personal loan with them? (would it be crazy to apply for a $5000 loan?)

I have a good job, I have never been late with my car payment. I'm just overwhelmed at all the seperate credit card payments I have. I want to start fresh & get out of debt!

About how much do you need to start an account w/ a credit union?

Any expert advice would be greatly appreciated! Thanks,

P.S., There are only 2 credit unions in my city (yeah, I know...it's a really small town) and their websites say that membership is open to those who live, work, or go to school! (we're a small university town). I also work for the university...

Answer 1

First off call the credit union. Depending on your debt to income ratio they may be able to help you. You can become a member by opening up an account with them...sometimes the balance can be as low as 25.00. Depending on your credit rate which sounds like it's not too bad they will set your interest rate. You can, if approved, get loans in that amount and pay off the cards. This could be a very good thing for you since it will have a lower interest rate then those cards. I suggest you cut up cards...you will never pay them off at the same time you continue to use them. Only get things that you can pay for, with cash. It's a hard concept for many people to get use to but if you have the will and desire to be dept free it will be stronger then the need to get the thing you can't yet afford. First off call the credit union and talk to them. They may or may not be able to help you. If they can then great. If not I suggest you pay as much as you can on the cards, at least double the minimum payment if you can but most important...stop using them. Check to see if any of your cards will lower the rate on them...call and ask. Tell them you have an offer to transfer to another card at a lower rate and was wondering if they could beat or match it. Sometimes they do, sometimes they don't, but never hurts to ask. Good luck. You will feel great when you get this burden out of your life and sometimes it feels like it will never happen. But remember don't use them, pay as much as you can, and stick to it! Take it from me, I was into cards much heavier then you are and after a couple years of stick to it, I am and will continue to be credit card debt free.

Answer 2

Every credit union has different rules for giving loans on unsecured debt (such as debt accrued on credit cards).

Some require that you be a member for a ceratin set period of months, say 6 months, before being given a loan.

Some state that in order to loan you certain amounts ie: $5000, you have to have had a certain amount of your money deposited in an account there ie: $500 to $1000, for that same period of time. Depends on the credit union.

It also does depends on two other things: your income and length of time on the job and/or your actual credit rating ie: your FICO score, as stated in an official credit report from one of the big three credit bureaus.

If you don't have a job, or just started one recently (under 2 years), or can't pay your other bills on time --even department store bills---or have paid a bill very late in the past couple of years--say 30-60-90 days late or more, one or more times in that period, they may simply refuse to lend you the money at all, unless you can secure the debt with a house or car title.

Go online to the credit union you are interested in joining and see. If you don;t belong to atrade or type of business or group that gets free credit union membership via your school or employer, you can always join one made for people just like you.

Check out Credit Unions of America dot org's credit union finder here:

http://www.creditunion.coop/cu_locator/index.html

Good luck!

Answer 3

My daughter works at a credit union. It is easy to join and the fees are much lower than a bank. Our's charged a $10.00 membership fee. A credit union is not for profit, they are there to serve their members. A bank is for profit. We just opened a $15,000.00 line of credit to pay off our credit card debt. It is an open line of credit that will be available to us in the future should we need it for home repairs, medical expenses or even a car loan. Our interest rate is 11.25 % fixed and we have good credit. Credit unions are much easier to work with than a bank. Go online and look for credit unions in your area, we applied online and all we had to do is go in a sign the papers.

Answer 4

The credit unions are much more customer orientated than the banks... You stand a far better chance of getting loan from one of them than any bank. Even if one credit union turns you down, be sure to hit up a different one. They too vary due to rules and workers attitudes.

If you DO get this loan YOU need to make a change and stop making debt for yourself. ONLY YOU can make this change.... if you do not change, you will simply be in the same boat in a very short time. You may need to present your changing ways to the loan officer in order for it to go your way. Show them you screwed up and you are willing to make it right and learn from it.

Answer 5

I do not know in your state, but here, you have to work with a job affiliated to that credit union, or have someone take you there and introduce you as a friend of someone that is already in the credit union to get into it. For example any one associated with a military base, can join the Mac Dill Credit Union. if you are not affiliated with then you cannot joint.
I am sorry but that is all I know about my credit union.

Answer 6

Credit unions are great............and I speak from experience..........the rates are a little better and the fees are much lower. I would really look into joining....and I believe the minimum amount varies from credit union to credit union. I started my credit union with five dollars.

And I've borrowed money from my credit union to consolidate some debt................no hassles at all.

Answer 7

I just want to say good luck to you.