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The Benefits of Choosing a Credit Union for Your Loan Needs

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Whether you want to apply for a personal loan, finance a car purchase, or supplement your financial aid package with private student loans, choosing the right institution for your borrowing needs is crucial.

Borrowing from a major bank might be the first thing that comes to mind, but Florida credit union loan rates can potentially save you a lot of money. Here's why.

Personalized Service and Member-Focused Approach

More than 142 million Americans use credit unions. This number shows the growing popularity of these institutions, but it also reflects the relatively small member base credit unions have compared to major banks.

This smaller scope isn't a drawback. It allows credit unions to focus on member service and give each loan application the attention it deserves.

As a result, credit union loan officers can provide a more personalized experience. They might recommend the best lending products based on your individual needs or consider multiple factors beyond your credit score and income, making you more likely to qualify for the loan you want.

Competitive Loan Rates and Terms

Power Financial Credit Union offers some of the most competitive Florida credit union loan rates. Our not-for-profit model is a significant factor in making borrowing more affordable for our members.

Unlike traditional banks, credit unions aim to generate just enough revenue to cover the costs of operating as a financial institution. If there is an excess, the money is redistributed to members, who are also owners, in the form of lower fees and interest rates.

Because banks need to create a profit for their shareholders, interest rates are often higher. For instance, during Q4 2023, credit union members could expect to pay an average rate of 12.72% for their credit card while banks charged 15%. For a 36-month used car loan, credit unions offered an average interest rate of 6.33% compared with the 7.17% bank average.

Credit unions also stand out by offering a wide range of lending products, giving you access to competitive rates on personal loans, auto loans, mortgages, home equity loans, recreational loans, student loans, and more.
Remember that Florida credit union loan rates can vary significantly, so be sure to do your homework before choosing.

Lower Fees and Charges

Your interest rate is an important factor when shopping around for a loan, but the APR paints a more comprehensive picture. The APR combines the interest rate with other fees your institution may charge.

You might have to pay processing and origination fees when applying for a loan. Over the years, payment processing fees, late payment fees, prepayment penalties, and account fees will add up.

As a credit union member, you can expect lower-than-average fees, and these fees will go down if the credit union grows and generates a surplus. Plus, credit unions are more likely to waive some fees to offer a better experience.

Additional Benefits and Perks

Here are some of the benefits and perks you can expect from your local credit union:
  • As an existing member, you can qualify for further discounts on your loan rate and other banking products.
  • You'll get access to a local network of branches and ATMs.
  • Credit union employees are often members of the community who share your values and want to help you succeed financially.
  • Thanks to their personalized approach, credit unions can offer more flexible loan terms, giving you options to better meet your unique needs. 
  • With free or low-cost checking and savings accounts, you can manage all your banking needs at the same branch or via the same mobile app or website.
  • Using local banking products keeps funds in the community. That's why credit unions are essential in supporting small businesses and making financial success accessible to everyone.
  • Additional perks include financial literacy resources, rewards and referral programs, and more.
Let's Talk About Your Borrowing Needs

Bank with a financial institution that puts you first! Borrowing from a credit union comes with several benefits, including a lower rate, a more flexible application process, and a highly personalized experience.

Are you ready to compare South Florida credit union loan rates? Visit one of our branches or use our convenient online application process to explore rates for our many lending products, including personal loans, mortgages, auto loans, and more.