A credit union is different from a bank in that it is a not-for-profit institution. To obtain a loan through a credit union, you will need to be a member.
Many of the larger credit unions are now offering options for student loan refinancing. Since they are not-for-profit corporations, credit unions may be able to offer better interest rates and charge fewer fees than banks and other financial institutions.
Refinancing your student loans can help you lower your monthly payments and potentially save you money over the life of your loan. Credit unions typically offer highly personalized services for their members, but they may not have as many options as larger banks.
Refinance Student Loans With Credit Unions
There may be a small origination fee or annual fee associated with membership, and you may need to open a checking or savings account with the credit union. Some credit unions require you to be affiliated with a certain industry, university, company, or geographical area to become a member.
Credit unions often offer more personalized services than a bigger for-profit bank. Since they are not-for-profit institutions, credit unions can regularly provide favorable loan terms and interest rates. Credit unions can also offer their customers more personalized service than bigger, for-profit financial institutions.
Typically, to receive the best rates on a refinance, you will need to have a high credit score (over 700 is ideal). A credit union may be more flexible with credit requirements than the larger players.
Application and Credit Scores
If you have more than one student loan and are looking to consolidate them into one loan, a refinance through a credit union is an option. Refinancing your loans through a credit union can save you money by potentially offering you a lower interest rate than you are currently paying. Continue reading Should You Use a Credit Union to Refinance Your Student Loans?