St. Louis Credit Unions Offer Competitive Interest Rates Despite Current Economy
Obtaining the best St. Louis bank rates and locking a great deal is a top priority for many. However, in the last several years, finding great savings rates and loan rates in the St. Louis area has been a challenge that Missourians struggle to overcome.
If not researched carefully and with consideration, poorly selected banking rates can push your financial situation into jeopardy.
The Rise of Credit Unions in St. Louis, MI
Banks are quickly moving away from incentives like free checking and savings accounts, and annual fees are facing an upward trend. The loss of these sought-after services can impact the overall return for consumers to enjoy.
For example, if the interest rate on a savings account yields a lower return than that of the annual fee to maintain the account, account holders are caught in a losing battle.
Local St. Louis Credit Unions are recognizing an opportunity to become more competitive than their bank counterparts by maintaining free checking and savings accounts to their members, and by also welcoming a greater amount of new loan accounts.
St. Louis Credit Unions Offering More Loan Opportunities
National-level banks are assessing loan approvals with a more rigorous eye. In an effort to steer clear of potential defaulters, banks have begun to integrate more stringent loan requirements that the majority of customers unfortunately fail to meet.
Individuals who were once considered to be ideal candidates for loans are finding themselves at a dead-end. This is where credit unions provide the silver lining for individuals seeking financial assistance.
As the resiliency of the nation’s economy falls deeper into question, Saint Louis credit unions are picking up the pieces where banks have grown increasingly selective. Lara Mark, owner of David’s Guitar Loft, hoped to secure a loan last year to open a second location for her music-shop business. When she sought to get a loan from a larger bank, she was surprised to be denied.
“With the state of the economy, they weren’t willing to extend lines of credit even though our financials supported it, and we have excellent credit,” Lara said. However, when she approached Missouri-based Arsenal Credit Union, she found greater ease in obtaining a loan to finance her growing business.
Years ago, consumers would be hard-pressed to jump ship from their current financial institution, but with a more demanding economic climate institutions who are reacting in a service-friendly direction, are witnessing an increase in membership and retention. The Missouri Credit Union Association estimates that one of five citizens are members of credit unions.