Does a better rate on a loan really help lower monthly payments that much? Does it really matter where I get my loan? How much difference could there be in a few points?
Check this out:
It’s a fact. Loan interest rates are usually lower at a credit union than at a bank, which translates into smaller monthly payments for you and your family. Take a look at these national loan rate averages:
Source: NCUA, June 2015
Using these same loan interest rate averages, check out how the credit union monthly payments compare to bank monthly payments:
|Credit Union||Bank||Annual Savings By Choosing a Credit Union|
|$10,000 used car loan, 48 months||$220.37||$231.11||$128.88|
|$20,000 new car loan, 48 months||$438.98||$457.60||$223.44|
|$6,000 balance on a credit card that you are trying to pay back in 12 months||$633||$636||$36|
|$7,000 unsecured loan, 36 months||$223.61||$226.66||$36.60|
These rates are just averages! If your interest rates are higher, you could potentially save even more by borrowing at a credit union instead of a bank. In fact, between better loan and deposit rates and lower fees, credit union membership confers a real financial benefit to consumers, to the tune of about $240 a year per member household.*
*Source: Credit Union National Association
A few points can make a big difference! Educate yourself before you go searching for a loan and save money by getting the best rate you can find!