Unity One Credit Union Summer Loan Sale starts June 1

Unity One Credit Union wants to help you build your future with a low-cost, personal loan. Starting June 1 until July 31, expect a great rate.

  • Rates as low as 5.99% APR*
  • Terms up to 36 months
  • Borrow up to $20,000
  • No collateral needed
Build Your Future

*APR = Annual Percentage Rate. Rate quoted “as low as.” Must qualify for the lowest rate. Other rates may apply. Minimum loan amount of $500. Offer expires July 31, 2015. Not available on existing Unity One loans. Some restrictions may apply. Payment per $1,000 borrowed for 36 months at 5.99% is $31 monthly.

About Unity One Credit Union

Established in 1927, Unity One Credit Union is the oldest credit union in Texas. A member-driven and not-for-profit cooperative, Unity One CU served the employees and families of the BNSF Railway for 70 years. However, after transferring its corporate headquarters to Fort Worth in 1998, the credit union expanded its field of membership to include other non-railroad companies, organizations and individuals. 

Today, anyone who lives, works, worships or attends school in Fort Worth, Blue Mound, Saginaw, Haslet, Keller, Colleyville, Bedford, North Richland Hills, Southlake, St. Paul, MN and Kansas City, KS may apply for membership. Unity One CU has seven branches to serve over 30,000 members nationwide. For more information about Unity One Credit Union, visit www.unityone.org. Think outside the bank.™

Your best chance for getting a low cost loan

low cost loansMany credit union lenders use credit scores or look at five critieria known as the 5 Cs of Credit before deciding whether you are trustworthy to lend money to. If you are in the market for a credit union loan, it may be best to have these Cs together to ensure that you get the low cost loan that you desire, whether that be for a car, boat or home improvements.

Here they are or I would like to speak with a loan officer.

Capital: Most of the time you need money to borrow money. To show that you can cover the some of the loan costs is a comfort to many lenders. Showing that you have the ability to make a down payment may give the lender confidence that you are a good manager of your money and are sure to pay back what you owe on time. Owning a home or having a savings account can be evidence of capital.

Capacity: No one wants to loan money to someone who is unable to pay. Would you loan your brand new iPad to a stranger that doesn't have a way of replacing it if it were broken? Lenders want to make sure that you have more money pouring in than pouring out. Showing that you have been on a job a good while, with increases in income can make a lender, once again, feel more confident.

Character: People with deep pockets can also be irresponsible. That's why credit reports are needed. Lenders can check repayment history and reputations just by checking your credit report. They are looking for unpaid debt, the amount of debt and slow repayment--among other things. If you establish a history of paying your bills on time, you should be in good shape. Also, make sure that your debt isn't more than what you bring in. Try to keep your debt to income ratio at 50 percent or less.

Collateral: Your possessions that you can use as collateral are very important to lenders. If you don't pay them, you may have to give the lender your collateral as partial payment for what you owe. An example of this is your car. It may be labeled collateral when you sign for an auto loan. If you don't pay the car payment, the lender can take the car. With credit cards, there is not collateral; so, lenders look at the other Cs.

Conditions: Some lenders may be more lenient about past credit troubles if you can prove that are moving past a bad experience like unemployment or identity theft and are working toward rebuilding your credit history. The local economy can also be considered.

How creditworthy are you? Are you on the road to getting a low cost loan at your credit union or financial institution? If you are not sure, feel free to speak with a Unity One Credit Union loan officer at no charge.

How are credit union rates determined? A CEO shares.

Have you ever checked out credit union rates and thought. . .your deposit rates are awfully low or your loan rates are too high?  It’s understandable to always want the best rate available to have a low cost loan, and we strive to provide that as often as possible.  In fact, at any given time, you will likely find that at least one of our loan rates or one of our deposit rates are among the best in the markets we serve.  However, it is very unlikely that we could ever offer the highest deposit rates and the lowest credit union loan rates across the board.

The Federal Reserve sets the bar

It all starts with market rates as established by the Federal Reserve.  The Fed Funds rate serves as an index for overnight or short-term deposits.   The Fed Funds rate (currently near zero!) establishes what the credit union can earn on its own ovLow cost loanernight deposits which are used to fund your daily transactions.    We can do one of two things with your deposits – we can invest them in Treasury or Agency securities or we can lend them to other members in the form of auto loans, mortgages, etc.  Because we are earning so little on our deposits, we are very limited in what we can pay our members.

A stronger CU

Loans are our main source of income, so it is vitally important that we price loans to not only attract a lot of borrowers but also to cover our costs and make a small profit.  So, when pricing loans we start with the costs associated with loans – the cost of funds (the yield we are paying on deposits), servicing costs (the operating costs related to processing and servicing the loan) and loan losses (the loss ratio we experience when people can’t pay back their loans).   We add these yields and ratios together to establish the “break-even” rate; then we add a little cushion for profit.   Keep in mind that all of our “profits” (net income) go directly to reserves in order to build a stronger credit union and serve you better.

Maximize returns

The credit union lives off of the difference (spread) between what we pay out and what we earn.   Our stated objective is to maximize our returns to members.  Unlike banks, we are not trying to maximize profits.   Yet, like any company, we need to achieve some profitability just to keep growing, adding services and strengthening the credit union.  It is a true balancing act to please both depositors and borrowers simultaneously.

Simple, transparent pricing

As you look at deposit rates and loan rates that are often published in newspapers, you will note that there is usually a very narrow spread between the lowest rates quoted and the highest rates quoted.  This is because all financial institutions price deposits and loans in a similar fashion as I’ve described above.  When you see a rate that is far above or far below the average, look out for the fine print!  Many times the best rates come with a catch such as a high minimum deposit or a large down payment, in the case of a loan.  We, at Unity One, believe in simple, transparent pricing with no fine print and we believe in offering consistently competitive rates with the occasional rate special to reward our members.

Are you in the market for a credit union loan but want to discuss your options with no obligations. Talk with a Unity One trained staff person.

Discuss your Options. Click Here.

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