Getting a Loan in this Economy

What a major mess. Regardless of how we got here in the first place as a country each of us wonders, what's in it for me and how does this affect me? That answer depends on a large part defining who "me" is and how you are sitting financially at this minute.

We hear about the Federal Government giving the big banks a stimulous infusion of cash so that they can lend more to each of us. That doesn't mean that tomorrow you will be able to head out to Wachovia, Bank of American, Wells Fargo, US Bank or Chase just to mention a few and expect a loan officer to welcome you with open arms just waiting to dole out his cash to you for any one of your needs. In fact, unless Congress becomes more vigilant in specifying that goverment money is specifically for lending, we are not entirely sure banks will do just that. Moreover, the credit requirements to get a loan in any of these major banks are tightening in an atmosphere where the average consumer's credit scores are suffering for any meriad of reasons such as unemployment, mortgage issues, bankruptcies and the list goes on.

So where do you go? Right now the best bet is the Credit Union. I have always extolled the virtues of the Credit Union because they carry better loaning interest rates, have cash rich reserves, are run by all of its customers who are its members, like banks are insured in deposit accounts to $250,000, don't have absorbitant compensation for its officers and tend to have that smaller home town releationship with its customers. There is a credit union available to just about everyone, either on-line or in a physical location close to you. Some have membership requirements such as living, working or going to school in a specific community, membership in specific organizations such as the armed forces or job specific industries, and referrals from existing members through a family relationship. However, more and more Credit Unions are open membership oriented where anyone can join.

Consider going to a Credit Union for your next loan.