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Do Credit Unions Work with Bad Credit?



Whether you have just a few financial obligations or many, it can be difficult to maintain a strong credit score. While a higher credit score does offer plenty of assurances, having a lower credit score shouldn’t put you out of consideration for the financial services you need. Joining a credit union is simple and not dependent on your credit score. And if you're looking for a bad credit loan, credit unions can often be more flexible than banks.


Can I Join a Credit Union with Bad Credit?


Yes. A credit union is very similar to a bank, with the key difference being that credit unions are not for-profit institutions. That means when it comes to fees and regulations, credit unions are often more flexible than traditional banks. All it takes to join Public Service Credit Union is a deposit of $25 to start a savings account -- maintain a balance of $50 or more or have direct deposits of $800 or more per month into the account and there are no service fees.


While you can join a credit union with bad credit, your credit score can still impact your ability to borrow. That said, as long as you have evidence of your ability to repay a loan, your credit score is more likely to impact your interest rate. Even if you have a lower score, you’ll often pay less than if you were to go to a regular bank, and you will typically have more flexible terms. Credit unions also look at your overall credit history so you’ll have a better opportunity to secure the loan you need.


Bad Credit Loans from Credit Unions


Public Service Credit Union offers auto loans, home equity loans, mortgages, personal loans, and even loans for boats and RVs. We offer low rates on loans that you can check before you apply. Not sure how much you need to borrow? We have loan calculators to help with your math.

If you have a history of bad credit, one of the best ways to improve that score is to show that you can be a trustworthy borrower. If you are turned down for a loan because of bad credit, consider applying for a credit card and making regular small purchases that you pay in full every month to rebuild your credit and then reapply.


Let Public Service Credit Union Serve You


If you have no credit a history of poor credit, trying to navigate your options for a bad credit loan can be difficult. One of the best parts about joining Public Service Credit Union is having access to financial experts who are guided by your success rather than a bank's profit margins. We can help you figure out what options are open to you and recommend a course of action to rebuild your credit today. Find a PSCU location near you or contact us to get started today.

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