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The Benefits of Borrowing

Borrowing money has become a common feature of the world we live in today. Some people borrow money so that they can get the things they need, like money for their education, for a home, or for an automobile, while others borrow to buy items and have experiences that they have always wanted. When it comes to borrowing, there is no right or wrong reason.

The loan industry is vast, and the type of loan you take out can affect your long-term financial situation. Too many times we’ve heard horror stories of people taking out loans they won’t be able to repay to spend on things they can’t afford, hurting themselves in the long run.

Therefore, it is vitally important to understand the different types of loans available, how to identify good rates - and good financial partners - and how to pick the loan that is right for you. In this article we are going to help you do just that, by running through the ins and outs of borrowing, so you are prepared to make a smart decision on your next loan.

Finding the right loan for you

First things first, if you want to find the right loan for you, you need to understand rates, and how to identify good ones. Doing your own research is essential, but you can take steps and utilize available resources to make sure you aren’t fighting this battle alone.

Many websites offer useful loan calculators that let you compare rates and fees for different loans. One of the best moves you can make is to check your local credit union to see what kind of loans they offer and their rates - they will almost always have the best rates available among financial institutions.

When looking for a loan, it's crucial to consider the Annual Percentage Rate (APR). This includes the interest rate and any fees associated with the loan.

Your credit score also plays a vital role in determining the loan rates you’ll have available. As you can imagine, the better the credit score, the lower interest you’ll be charged, while a poor credit score can lead to higher rates or denied requests. Credit unions can help you out here again, as they are far more likely than banks to lend to people with lower credit scores.

You can help maintain a higher credit score by paying your bills on time, keeping your credit card balances low, and checking your credit report regularly for any errors, which you should then point out to your financial provider.

How the banking industry impacts loans

In recent months, we’ve seen the banking industry take a hit with several banks running into trouble across the US and, indeed, the world. In difficult times, financial stability and safety are extremely important.

Credit unions are unlike other financial institutions, given that they are not-for-profit organizations. This means they are member-owned and member-run, and in times of turmoil, they do not engage in the same risk-taking as traditional banks, instead prioritizing the financial security and stability of all of their members. Members also benefit when the credit union turns a profit, which is then returned to members in the form of lower rates on loans, higher yields on savings, or dividends.

Additionally, credit unions are federally insured by the National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration (NCUA), for up to $250,000 for individual accounts. The peace of mind that this grants to credit union members can’t be understated.

Now that we understand a bit more about loans, how to find good rates, and the industry as a whole, let’s take a look at some of the most common loans available in today’s market.

Auto Loans

Car and auto loans are perfect for anyone looking to buy a new or used motor vehicle. The better providers, such as Riverways Federal Credit Union, offer an online application process that allows you to get pre-approved in minutes, as well as competitive rates and flexible terms to fit any budget.

Recreational Loans

Recreational loans are loans that people take out if they are interested in buying a boat, an RV, or some other sort of recreational vehicle.

Home Mortgage & Refinance Loans

Home mortgage loans are, you guessed it, loans for people that want to purchase a property or refinance a home loan. Riverways Federal Credit Union offers both fixed and variable-rate mortgages, allowing members to borrow in a way that suits their specific needs.

Personal Loans

Personal loans can be used for any purpose, including consolidating debt or paying for unforeseen expenses. These loans are unsecured, adding additional flexibility for would-be borrowers.

GAP and MBP Insurance

Guaranteed Asset Protection (GAP) and Mechanical Breakdown Protection (MBP) insurance are available to protect your vehicle in the event of an accident or the vehicle being stolen. GAP covers the difference between the actual value of your vehicle and the current amount you owe on your loan, while MBP insurance covers the cost of any repairs or component replacements you may need.


Home Equity Lines of Credit (HELOC) is a type of loan that lets you borrow against the equity in your home. Home improvements and other large expenses can be financed this way, and the low rates and flexible terms on offer at Riverways Federal Credit Union make these loans a viable option for many credit union members.

Indirect Loans

Indirect loans are offered through Riverways Federal Credit Union' network of dealerships, making it possible to finance a car or other vehicle purchase. Riverways works with a variety of dealerships to offer competitive rates and terms, making it much easier for members to get the financing they need for their new vehicles.

Agriculture Loans

Agriculture loans help farmers and ranchers looking to purchase land or equipment for their activities. As a credit union, Riverways Federal Credit Union understands the importance of supporting local farmers, and their agriculture loan offerings reflect that commitment.

Commercial Loans

Commercial loans are available for businesses looking to finance their operations, whether that be real estate purchases, equipment purchases, or working capital. Riverways Federal Credit Union understands the unique challenges and opportunities that come with being a part of a community and is committed to helping small, local businesses prosper with competitive commercial loan rates.

Construction Loans

Finally, we have construction loans, which are available for individuals looking to build the home of their dreams or complete a renovation project. There is no greater relief than having a place to call home, and Riverways wants to help as many members of its community construct their dream homes.

Choose Riverways Federal Credit Union for your next loan

At Riverways Federal Credit Union, we want to use our expertise and experience to help our members achieve their goals, no matter what those may be. Our loans have brought joy to countless families, individuals, and businesses in Missouri to date, and they will no doubt continue to do this moving forward.

Contact Riverways today to chat about the loan you need to make your dreams a reality.

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