How do you get a loan from a credit union?

Answer 1

Go down there and apply for it helps to be a member and have money in it , My credit union at work gives better percentage rates than banks

Answer 2

The first thing (and most important!) is that you have to be credit worthy. That basically means that you can't have a bankruptcy on your credit bureau that is less than seven years old, and your BEACON score needs to be relatively good (say, about 630 or higher).

A BEACON score looks at your credit reporting from all angles, and will spit out a number that tells the lender at the CU whether or not you are likely to pay the money back. A low BEACON score indicates (more than likely) that you've been reported to a collection agency, had loans written off, credit counselling, or have recently declared bankruptcy. A low score pretty much says that you have a rotten history of paying money back, and that you're a bad credit risk. The higher your BEACON score, the better your chances of getting a loan.

Your chances are also higher of getting approved if you have a good, long-term job, a permanent residence (ie: you haven't moved around a lot in the last little while), or you have a financially stable, credit worthy person co-sign the loan with you. Collateral, like a car, real estate, or other assets (term deposits, bonds, that kind of thing) will help, as well.

If you want to know more about managing your credit, I suggest looking at Equifax's website (www.equifax.ca) -- they have good info on credit management.

On the purely technical side, all you really have to do is call your CU and tell them you want to talk to a lender about getting a loan. Sometimes, you can apply over the internet, or with the CU's Call Centre right over the phone. It's actually a fairly painless process, although you might need to provide proof of income.

Good luck on your application!

Answer 3

Apply; just like a bank.