Are Loans Cheaper at Credit Unions?

Borrowing money is never easy or cheap. Most of the time, you end up poorer than ever after borrowing a $900 loan. Nevertheless, there are some situations in life where you just have to bite the bullet and there are lenders available for financing whether its a student loan, mortgage or cash advance. Banks may be cheaper but not everyone can qualify and pass their credit check. We have the information to help you find where to get cheaper loans at credit unions, and attend school, buy the car or home despite today’s credit crunch.

Cheap School Loans

Many have now realized they paid too much for their college education without getting a well paid job in return. For underclassmen, you still have the chance to choose a community college and avoid ridiculous tuition fees at private schools. This will help you avoid years of being in debts due to college expenses which can amount to $100,000 and above.

The best school loan to take is the Free Application for Federal Student Aid, or FAFSA. As long as you are enrolling in a full time course, students can get up to $5,500 from the Stafford loan program. For adult students over 24 of age or your parents have bad credit, you can be eligible for additional college money of $4,000 to $7,000. You may think thats a lot, but note that current tuition fees are over $10,000 and still rising. As of 2009, the annual interest rate on Stafford loans is 7.1 percent. It is really cheap considering that you can opt for income based payment where you only pay a certain percentage below your income every month.

Low Finance Charge Personal Loans

Sometimes, you just happen to run of out money before your paycheck arrives. What if you forgot to pay the bills and theres no electricity or water at home? Such situations happen very frequently among the 20s to 30s working population and you can use a short term personal loan to get by for a month. You can get cash advance online and have the money in your checking account securely. Its that fast and simple. However, it is not that cheap since the annual rate can be as high as 300%, so never ever owe such lenders money for more than 3 months.

Cheap Car Loans

Drivers have it tough with rising gas prices, car insurance and the difficulty of getting approved for online car loans. If you have bad credit, buying a car with financing comes with very high interest rates whiles banks will only give 0 APR car loans to borrowers with above 700 FICO scores. For example, credit union used car loans may be found at 6.5%, while some online lenders may charge 7.5%. New car loans may be slightly cheaper at around 6.4% but this is negated by the higher price for a brand new vehicle.

Inexpensive Home Loans

Home loans are perhaps the biggest loan you will ever take and hardly anyone buys a home with no financing. However, it is also the cheapest loan available due to the fact that it is secured with your home and that home prices tend to appreciate with time. To get a home loan, you need to have reasonable credit, a stable income, and money for the initial down payment. Generally, credit unions offer cheaper home loans to their members at 5% for a 30 year mortgage. If you are already a homeowner and need to tap on the value of your home for some financing, credit unions offer cheaper home equity line of credit at 4%. Here’s more mortgage tips for new home buyers. As you can see, there are many monetary benefits to joining a credit union where their loans can save you a lot of money.

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