MADISON, Wis. (2/19/16)--A new article from NerdWallet advises consumers to seek out credit unions for small-dollar loans.
Banks typically only offer personal loans above a certain threshold, typically $3,000, leaving consumers with few options.
The article is very direct: “Your local credit union is the best place to get a small dollar loan,” it advises readers.
Many credit unions across the country offer loans as small as $500, and almost all offer amounts lower than $3,000, Fadhila Holman, president/CEO of Cooperative Center FCU, Berkeley, Calif., told NerdWallet.
Holman explained how some credit unions have no minimum credit score or income requirements for a personal loan. Rather, they look at the borrower’s debt-to-income ratio and history with the credit union to make sure he or she can afford the loan.
“Since credit unions are built to serve their members, you’re more likely to get an affordable small dollar loan at a reasonable interest rate than at other types of financial institutions,” the article said.