# Credit Union Loan Rates?



## Graftgirl (27 Aug 2012)

I am about to apply to my credit union for a loan and have been doing my own calculations etc before I decide the terms and exactly how much I need to borrow.
As I do my calculations etc I note while searching on AAM and other forums that members are paying interest rates of anything from 4% and up, I know some have a discount if they are in the public sector and also others may have a special rate for a car loan or a special rate for home improvements but my credit union charges 10.5% across the board.
I have on previous occasion asked my CU if they ever run special rate promotions or one time I also asked if there was a special rate for loan a home improvement loan application I made but I was told that they have never had any other rate other than 10.5%.
My question is, Is my CU charging at the upper end of the scale or are many other CU's using this rate, also why do other Cu's have promotional rates and my  Cu say the never run any other rate other than 10.5% ever!!!
Thanks in advance for any replies..


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## Brendan Burgess (27 Aug 2012)

Don't forget that the 10.5% is the rate on the loan.

If you have to keep 25% of the amount lent in shares at 1%, the effect APR on the package is around 13% 

Credit Unions are independent. It is up to each board to set its own rates for loans and shares. 

Brendan


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## ontour (27 Aug 2012)

Some credit unions are more innovative/ creative, some have been far too innovative and creative over the last number of years.  Your credit union is charging at the upper end of the scale but there are plenty of others that I know at that rate, usually smaller credit unions.

Based on your home location, work location or profession you may be eligible to join another credit union if you satisfy their "common bond" criteria.  It might be worth investigating.


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## Graftgirl (27 Aug 2012)

Thanks Brendan, yeah its hefty when the share value is taken into consideration also. I am just a bit annoyed at the inflexibility of my particular credit union, they never budge from 10.5% as they say themselves but then I see other CU's offering promotional and reduced rates to their members, its a bit frustrating that it is so high.
Thanks


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## Graftgirl (27 Aug 2012)

Thanks OnTour for your reply, my CU would take in a large enough catchment area but it is considered rural(in a village) maybe they are just too small to be more competitive..
Graftgirl


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## Complainer (27 Aug 2012)

Do you have access to any other CU through your work, or your union or your partner perhaps?


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