Does a better rate on a loan really help lower monthly payments that much? Does it really matter where I get my loan? How much difference could there be in a few points?
Check this out:
It’s a fact. Loan interest rates are usually lower at a credit union than at a bank, which translates into smaller monthly payments for you and your family. Take a look at these national loan rate averages:
| Credit Union | Bank | |
| 48-month used car | 5.94% | 7.50% |
| 48-month new car | 5.70% | 6.92% |
| Credit card | 11.90% | 13.89% |
| 36-month unsecured | 10.78% | 12.54% |
Source: Datatrac, March 2008
Using these same loan interest rate averages, check out how the credit union monthly payments compare to bank monthly payments:
| Credit Union | Bank | Annual Savings By Choosing a Credit Union | |
| $10,000 used car loan, 48 months | $234.58 | $241.79 | $86.52 |
| $20,000 new car loan, 48 months | $466.95 | $478.18 | $134.76 |
| $6,000 balance on a credit card that you are trying to pay back in 12 months | $532.81 | $538.41 | $67.20 |
| $7,000 unsecured loan, 36 months | $228.44 | $234.31 | $70.44 |
These rates are just averages! If your interest rates are higher, you could potentially save even more by borrowing at Northwest Georgia Credit Union instead of a bank. In fact, between better loan and deposit rates and lower fees, credit union membership confers a real financial benefit to consumers, to the tune of about $240 a year per member household.*
*Source: Credit Union National Association
A few points can make a big difference! Educate yourself before you go searching for a loan and save money by getting the best rate you can find!
