Financial loans, whether secured from a personal or public source, are the first port of call in a situation where you need to borrow money to gain ownership of a house or vehicle. A loan is based on the fact that the bearer will repay the amount with the said interest over a fixed term. While bank loans are the most popular kind, local credit unions are fast gaining popularity as the preferred alternative to high-street financing companies. With a compelling list of advantages credit unions are more cost friendly and easier to apply to. Some of the benefits of dealing with credit unions are mentioned below.

• The number one pull of credit unions is the fact that they offer loans at a substantially cheaper rate as compared to traditional banks. The primary reason behind the existence of a credit union is to be able to help the community and all the credit union members. Thus the staff at credit unions helps their members in fulfilling their dreams by providing quick financial assistance at cheaper rates.
• Credit unions are non-profit organizations and the interest you pay is used to help other community and credit union members. This gives a feeling of helping others while your own needs are addressed simultaneously.
• Securing loans are not the only purpose that credit unions help with. You can use them just like a regular bank in order to deposit funds, withdraw them, to use locker services, financial advice and many more services. As a credit union is an easy and cheap source to secure loans they stand out distinctly as a more favorable financial institution.
• The staff at credit unions has a subtle yet different approach to dealing with their clients. They are helpful and focus on addressing all your queries at once, especially the ones related to taking certain necessary measures to qualify for a loan successfully, should you fail in the first attempt.  

There are several other advantages that come with taking your financial dealings to a credit union like access to a well spread network of ATM's and personalized customer support.

• Flexible loan conditions: As a secured auto loan requires the borrower to present a collateral, it minimizes the risk for the lender. Hence, the terms and conditions of the loan are quite flexible which eliminates any sort of financial burden on both the parties involved. The borrower need not have a high income to be eligible for a secured loan.

• Lower interest rates: Pledging an asset by the borrower subsequently brings down the interest rates on a secured auto loan. The lender is assured that he can take over the possession of the vehicle in case the borrower is unable to repay the loan. Lower interest rates imply easier and regular monthly payments, which in turn, improves your credit rating.

• Quick Approval: Compared to other types of loans, it is much easier to get approval for a secured loan. Due to minimal risk, there is no need for the lender to conduct through background checks or income verification. Thus, secured auto loan applications are approved much faster, usually with 48 to 72 hours.

• Economical repayments: The interest rates are much lower when it comes to a secured auto loan. This eventually means that the borrower has to give out less money for monthly repayments. You can even request to increase the term of loan repayment to make it even simpler to pay back the capital along with the interest.

• More Reliable: By keeping a guarantee with the lender, there are minimal chances of the borrower defaulting on the loan. Also, knowing that the vehicle will be confiscated if he fails to repay the credit encourages him to be regular in his payments.