Wall Street Journal looks at lending; credit unions offer better rates
03/16/2010 10:42 am
The Wall Street Journal analyzed the lending of more than 7,200 credit unions, banks and community banks. The Journal found that lending through banks has fallen 7.5 percent and consumer lending is off 3.8 percent. Working with the FDIC, the Journal uncovered that lending was pulled back in 90 percent of the banks with more than $100 billion in assets. Credit unions were featured in the area of credit cards and auto lending. The article pointed out that credit unions usually had better rates, specifically looking at Piedmont Advantage Credit Union in Winston Salem, N.C and it's new program where it offered cards at 6.99 percent fixed rate. This was a two-percent drop from previous rates. Antelope Valley Federal Credit Union in Lancaster, Calif., was featured in the auto loan section. The Journal wrote, "(members) can cut their rate by 0.25 percentage points if they sign up for direct deposit and by the same amount if payments are automatically deducted from an account at the credit union. Lending is up 167%."
A very good placement for credit unions. The story was printed in the Weekend Journal. To read the full story,