No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
So, I needed to take out a personal loan in order to help my girlfriend (who lives outside the US) buy a used car (for cash). At first I tried Marcus, who I have a savings account with, and they turned me down (you can see my credit score and age of credit below). I then did the Credit Karma pre-approval check thing (neither CK nor Marcus does a hard pull to check if you're pre-approved), and only one lender--Upstart--made me an offer. The offer was truly awful: what they wanted beyond the principal of the loan ($6,000) was 22% interest, PLUS an origination fee which added another 12% (I don't know if they calculate the origination fee as a percentage of the principal or if it's a fixed fee). Anyway, no way was I taking that "deal." Oh, and this was for a 36-month loan.
Next I was going to try Amex personal loans, but then I had a thought: what about the credit union I've been a member of for close to 20 years? I mean, duh! I looked at the loan section of their website (which I'd never paid attention to before), and it looked pretty good...so I took the plunge (there really wasn't a "pre-approval" option, so I knew I was in for an HP). An HP is what I got, instantly (Transunion), and they said they'd get back to me in one business day.
Today was one business day, and I hadn't heard from them, so I called, thinking they might have some questions for me, and to let them know I could be flexible with the amount I was asking for. I'm glad I did, because I decided to decrease the amount I was borrowing (I had originally asked them for $7,000). The very helpful CSR (they're all like that at this credit union, which is in Wisconsin) approved me on the spot, and gave me my interest rate: 6.4%!! Needless to say, I was very pleased...that's better, I believe, than what Marcus offers even their borrowers with credit scores in the 800s. So I got the loan of $6,000 at 6.4% interest (including their built-in "insurance" which makes your payments in the event of death or disability) for 36 months, with montly payments of $188, beginning May 2. I signed the loan agreement online, and about 5 minutes later, the money was in my credit union checking account.
Anyway, the moral of the story is, if you need to borrow some money, don't overlook your friendly neighborhood credit union!!
Great deal and good advise!
Yay you! My friendly, local CU denied me with a 758.
CUs vary greatly.
Glad that it worked out for you tho!
I’m glad you got the credit union loan but I’m surprised Upstart is the only offer you received from CK. My scores are lower than yours and received offers from Avant, One Main, as well as Upstart and one other I can’t remember. I didn’t take the offers because it was APR’s north of 25%. I think two of them didn’t have origination fees.
Credit union relationships do vary, but if you end up in a bind and they can help you like this scenario, keep them for life.
@ratchada wrote:So, I needed to take out a personal loan in order to help my girlfriend (who lives outside the US) buy a used car (for cash). At first I tried Marcus, who I have a savings account with, and they turned me down (you can see my credit score and age of credit below). I then did the Credit Karma pre-approval check thing (neither CK nor Marcus does a hard pull to check if you're pre-approved), and only one lender--Upstart--made me an offer. The offer was truly awful: what they wanted beyond the principal of the loan ($6,000) was 22% interest, PLUS an origination fee which added another 12% (I don't know if they calculate the origination fee as a percentage of the principal or if it's a fixed fee). Anyway, no way was I taking that "deal." Oh, and this was for a 36-month loan.
Next I was going to try Amex personal loans, but then I had a thought: what about the credit union I've been a member of for close to 20 years? I mean, duh! I looked at the loan section of their website (which I'd never paid attention to before), and it looked pretty good...so I took the plunge (there really wasn't a "pre-approval" option, so I knew I was in for an HP). An HP is what I got, instantly (Transunion), and they said they'd get back to me in one business day.
Today was one business day, and I hadn't heard from them, so I called, thinking they might have some questions for me, and to let them know I could be flexible with the amount I was asking for. I'm glad I did, because I decided to decrease the amount I was borrowing (I had originally asked them for $7,000). The very helpful CSR (they're all like that at this credit union, which is in Wisconsin) approved me on the spot, and gave me my interest rate: 6.4%!! Needless to say, I was very pleased...that's better, I believe, than what Marcus offers even their borrowers with credit scores in the 800s. So I got the loan of $6,000 at 6.4% interest (including their built-in "insurance" which makes your payments in the event of death or disability) for 36 months, with montly payments of $188, beginning May 2. I signed the loan agreement online, and about 5 minutes later, the money was in my credit union checking account.
Anyway, the moral of the story is, if you need to borrow some money, don't overlook your friendly neighborhood credit union!!
Thanks for sharing your story and a reminder that CUs really are there to benefit its members. Congratulations on a successful approval and APR.
I had a really good relationship with my credit untion in Indiana, but I've moved so much it started getting difficult to work with them. I miss those days though, and when I retire and settle down I'll defnitely be a credit untion member again. Congrats OP!
@LakeLife wrote:I had a really good relationship with my credit untion in Indiana, but I've moved so much it started getting difficult to work with them. I miss those days though, and when I retire and settle down I'll defnitely be a credit untion member again. Congrats OP!
I actually haven't lived in Wisconsin since 1989! I opened my current credit union account there in 2000, since I was working there in the summer. I'm really glad I hung on to my credit union account over the years since then. It was actually my main bank up until last year, when I switched to Chase. I came *this* close to closing the credit union account last year, but kept it because they have a bill pay service where they'll print and mail a physical check for you (necessary for paying my rent in my current situation), which Chase doesn't offer. BTW, I have no complaints about Chase, they've been great to work with so far, and the CSRs in my local branch have been extremely personable and helpful. However, no way is Chase ever going to, as an institution, have my financial welfare as a priority the way the credit union does.
@tcbofade wrote:Yay you! My friendly, local CU denied me with a 758.
CUs vary greatly.
You got that right! I've been with my CU for 40 years and they denied me for a credit card last fall when my FICOs were around 750. They've always been tough on loans and credit cards.