If soaring gas prices and inflation’s impact at the grocery store have sent you scrambling back to your budget in search of clever ways to cut corners, you’re not alone. With the right kind of banking partner in your corner, you also will not be alone as you figure out how to make ends meet for your family.
Credit unions tend to be more willing to work with members to make short- or even long-term modifications to loans to ease members through difficult times. We want to work with people, as people, to get you through whatever you might be struggling with.
Let’s say you’ve already poured over your budget for possible savings, and succeeded in eliminating or modifying a few line items—perhaps you’ve canceled subscriptions to a few streaming TV services and opted to downgrade to more affordable Internet or phone plans. If only you could refinance your auto loan, you discover, you might save enough each month to open up some breathing room.
If you apply to refinance your auto loan at a bank, you do so as a mere customer. If, however, you choose instead to join a credit union and apply to refinance, you do so as a member and an owner of the credit union. This makes all the difference in the world because of the many ways in which credit unions work to help their members succeed.
Unlike banks, which are for-profit corporations that serve the interests of their shareholders, credit unions are not-for-profit, member-owned institutions that are uniquely positioned to improve the financial wellbeing of their members. When it comes to profits, for example, banks route theirs to shareholders and executives, while credit unions return theirs to members in the form of lower loan rates, higher interest savings accounts, and fewer fees.
Banks are also required to pay federal income tax because of their for-profit status, while credit unions—as not-for-profit organizations—do not. This savings is likewise passed down to members in the form of the credit union’s offerings. These differences enable credit unions to offer lower rates for auto loan refinancing than banks.
But let’s say your monetary situation is more dire, and you’re concerned you won’t be eligible for refinancing. This is where credit unions excel. While banks often sell their loans to investors that have strict guidelines about what they will and will not purchase, credit unions retain more of their loans and are therefore able to be more flexible when it comes to borrowers’ needs. A credit union might just accept an auto refinance loan application that a bank would reject—and that acceptance might help you get on the road to lower monthly payments.
Finally, when it comes to your money, you need a financial institution that will actually listen to you. While you are a mere customer when you visit a bank, you are a member of the family when you join a credit union. As a member-owner, your voice matters. Your financial success is intertwined with the success of the credit union, and that means listening to you and helping you is actually in the credit union’s interest.
Make your finances more manageable with help from Millstream Area Credit Union. We look forward to getting to know you, and to helping you carve out more breathing room in your budget during this difficult time. When the prices at the pump are absurd and inflation elsewhere is making it difficult to get by, remember that having a credit union in your corner can make all the difference when it comes to finding your financial footing again.