CR Union vs. Bank - Which is the best way to go?

Question

I have a loan/charge account with Wells Fargo that I'm wanting to pay off (currently owe around $2400).

I've gotten two quotes that are pretty close in comparison. Which would be the best way to go.

First Financial Bank - 36 Months @ 10.99% - I don't know how much loan fees are there - I'm sure they're at least $100+

Teacher's Credit Union - 36 Months @ 12.5% - No Loan Fees or Application Fees.

Answer 1

You have asked the Five million dollar Question most likely with out meaning to.

Here are the cold hard Facts.
At the CU you pay interest in the amount of $492.61
At the Bank you will pay back interest and fees of $444.97

So even with the fees the bank is a better deal.

Now about which to choose Credit Unions were originally designed to help people the banks wouldn't. Now if this is a true Credit Union and you are a member you might want to do that.

Credit Unions and Banks do not see eye to eye. Let me explain why shortly because odds are you don't care. Credit Unions are tax exempt. But they act like a Bank so sometimes they have better rates. The Taxes collected from the banks go toward schools. The bank look at it like this say there are two competing lemonade stands one pays taxes and supports the Gov. the other receives Gov. money and aide and does not have to give back. which lemonade stand do you as a consumer choose the cheapest of course and no one blames you. Because it is not fair.

OK enough of a rant, I recommend talking to the Loan officers at each and get a feel for who you trust people tend to bank with a loan officer not a Bank or Credit Union.

Good Luck

Answer 2

well just from the info you gave the bank has the best rate so you would be saving money that way. But if you want to have a relationship with the credit union after the term of the loan, then I would go with the credit union. If you pay the loan on time, and maintain a account with the credit union, then you will have a good relationship with this credit union and in the future they will likely be more willing to extend you the credit that you want for a better rate than a bank. Credit unions help their members, and often offer better rates to members who are in good standing. So now it is up to you which you want to do.

Answer 3

I would go with the credit union. Here is why: Credit unions are here for the people. They make no profit for themselves and that is why they are self sustaining. Plus there is leway. If you are late, usually they won't charge you fees, a bank will. Also alot of credit unions offer new rates all year. You will probably be able to refinance your loan with a good payment history in the future. I have been with my credit union for over 10 years and they have always been good to me.