Are credit unions more lenient when it comes to your credit score when applying for a loan?
Answers:
No.
The ONLY difference between a credit union and a bank is the ownership. A credit union is owned by its members, and therefore exists primarily for service, not for profit.
They're not any more interested in making a risky loan than the bank is.
some are
Every Lender and there underwriters have different rules no matter if its a bank or credit union. Check around 3-4 places before hooking up with a lender. Interest rates from all are not the same.
The short answer..no.
However each bank is different in how they review and approve loans. So the particualy credit union that you use could be very easy on approval, and the one down the road could be stingy.
But as compared to regualr banks there is no difference. A loan is a loan and risk is risk.
credit unions are what you call risked based lenders. they will consider anyone when it comes to lending and they have special programs that allow you to put up some form of collateral if your credit isn't all that good.
The majority of banks because I can't speak to all of them are non-risked based. they prefer to give loans only to people that have good credit scores and have high enough income levels. not all banks do this and it also depends on the type of loan. a mortgage is completely different than a personal loan and also completely different than an auto loan.
If you have bad credit and are looking for a unsecured loan or credit card. the chance is good you will be declined everywhere you go. if you go to credit union and want to say put up your car or motorcycle then you can the loan. if you are looking for a car loan, make sure that the loan is less than the value of the car and you should be better off.. if you credit is completely horrible. the only option that you will have for lending options is a secured loan through a credit union
From my observations I would say they are more lenient. Most banks seem to rubberstamp every loan that goes through. You can at least talk to a credit union, and they will listen to you.
But that doesn't mean they will give out a high risk loan either.
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