1 Year Loans w/ 12 Month Installments (Credit Unions in MD, MS, OH)

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1 Year Loans w/ 12 Month Installments (Credit Unions in MD, MS, OH)

We are now going to some work regarding credit union loans in Columbus Ohio, Baltimore Maryland, and down to Jackson Mississippi. All of these personal loans were installment based lending products whereby a credit union approved the applicant’s request for funds.

We see thousands of applications coming through each year from people who have poor credit, requiring a short-term loan of 12 months (one year), as opposed to your typical short-term loan of three months or six months. What our users really want is to avoid your typical payday loan or so-called “installment loan” whereby the terminology has been hijacked by the payday loan industry in an attempt to dupe borrowers into thinking that they are getting a more traditional loan, with a reasonable interest rate, for a reasonable amount of time, with low affordable monthly payments. When in fact, these faux installment loans are just payday loans in disguise.

Without question, the vast majority of our users (borrowers and applicants) want to find a credit union or traditional bank that will lend them money at a reasonable rate over a period of time (1-3 years). For these three loans below we are choosing to report on three different credit unions that approved customers for a normal loan in which to pay off their credit card debt and be left with 12 monthly installments at a decent rate.

Our first 12 month loan comes to us from Columbus Ohio where the borrower needed $30,000 – they make a lot of money per month from their business model and wanted to clean up this debt in one year.

There has always been a belief online (and off), that credit unions offer the best rates on almost all lending products, and that they are the last lender class that will exercise predatory lending tactics – far from being loan sharks. This is mostly true, but borrowers still have to use their due diligence when they are considering applying for a personal loan with a local credit union. Credit unions are owned and managed on a more local basis giving consumers the feeling and perception that their lending practices are honest and more on the level, but we have seen instances where the credit union managers and loan officers were practicing predatory lending.

We will leave these credit unions out of this discussion because bad behavior did not come in to play with these loan processes below.

12 Month Loan w/ Credit Union (Columbus Ohio) – Credit Union

1 Year Loan in Columbus OH (12 mo. installments) – Credit Union

So in Columbus Ohio we had an applicant who was having trouble with their business and their personal finances, yet they had a very healthy monthly cash flow in their favor. Unfortunately they had a very poor credit rating of 400 to 410 for a credit score, and they weren’t having any luck with any of the traditional banks in getting a 12 month loan.

Their bank of choice for personal and business was Chase Bank, with their branch located near their home at the corner of Buckeye Parkway and Stringtown Road which is just East of Grove city. If you are not familiar with this area of Columbus, it is South West of the Columbus downtown center, and just Southeast of the Southwest airport.

This borrower and his wife own a string of successful businesses, but because of some bad luck (and the recession of 2009) they ended up defaulting on several of their vendor accounts, and unfortunately they had made the mistake of setting up these vendor accounts with their own personal credit. This is what put them in the “fico tank” (so to speak).

As a couple they wanted to get rid of some credit card balances in a private manner so as not to attach this high interest debt to their business books. The husband transferred all of their debt onto his credit cards and they wanted to get everything consolidated and put onto a monthly payment plan for 12 months.

His total visa card balance was at $7000 approximately, with a MasterCard balance of $6300, a department store credit card balance of $2300, along with a gas card with Conoco Phillips of $800.

With all of his credit card debt it came to just over $28,000 to deal with, and the finalized credit union loan approval was for $30,000 over a one-year term. The monthly payment amount was approximately $2600 and a total of $32,000 paid back to the local CU. Total interest on the loan was approximately $1700.

This credit union does business with borrowers in all areas of Ohio, including Dayton, Akron, Wheeling, Youngstown, Cincinnati, and Toledo (of course). They have been known to be an honest lender with deep ties in the Ohio communities that we just listed. This credit union has chosen to leave their name off of this document for reasons we do not fully understand, but we understand why lenders want to control information in regards to their products and services.

So you can see by the amount of money that was being paid to this credit union every month, this couple had to make sure that their cash flow(s)were solid enough that they could manage this size of payment on a monthly basis. The good news is that they paid off this loan in full, and the APR was reasonable at around 10%.

Reason for 12 Month Loan: To Consolidate Credit Cards

  • Visa Card Balance: $7000
  • Mastercard Balance: $6273
  • American Express Balance: $12300
  • Dept. Store Credit Card Balance(s): $2300
  • Gas Credit Card Balance(s): $800
  • Total Credit Card Debt: $28673
  • Finalized Approval of Loan: $30000
  • Effective APR: 10.5%
  • Monthly Payment Amount: $2605.97
  • All Paid To Lender: $31705.93
  • Interest on Loan: $1705.93
  • CU Loan Term Length: 12 months/1 year
  • Credit Rating (FICO#): 405
  • Loan Nomenclature: CCCL
  • Area of Residence: Grove City
  • Other Areas with Credit Unions: Dayton, Cincinatti, Toledo, Akron, Wheeling
  • City of App. Origin: Columbus
  • State of App. Origin: Ohio
  • Lender Class: Credit Union

Baltimore Maryland 12 Month Loan w/ Credit Union

1 Year Loan in Baltimore MD (12 mo. installments)

Our second 12 month loan was in Baltimore Maryland and this borrower did business with a credit union to consolidate some high interest debt. He applied with a local CU near their residence of Townson, which is North of Baltimore (best route is Highway 45/York road). His own bank would not approve him for this loan, which was the PNC Bank over on West 1st Avenue, in the area of Grandview Heights of Columbus. He use to live in downtown Baltimore in an apartment but moved up North to Townson with his fiancée back in 2008.

He was turned down flat by the PNC because his credit rating wasn’t high enough in their judgment. His credit rating at the time was a FICO of 623, and his DTI ratio was unfortunately considered to be too risky for them.

He was talking to his fiancée while they were on a road trip to see family in Mount Vernon when she suggested he try talking to a friend of hers who is a loan officer at a Baltimore-based credit union. When they returned from holidays he went and did just that.

He ended up getting approved for a $45,000 loan for a one-year period with 12 monthly installments of close to $4000 (ouch right!)

This applicant chose to leave his actual name out of this document in order to protect his privacy (how can you blame him – after all, we are talking about the Internet here), but suffice to say that he makes really good money as a money manager (I know it’s ironic), and he was able to make these large payments for 12 months.

One of the things that applicants have to always remember when they are trying to get approved for a 12 month loan, is that it’s likely that their monthly payments will be rather large for that year, so they have to be prepared for a lean year as they are paying down the debt. Some would say, “why would you put yourself in such a bad situation where you have to pay back such a large sum of money for 12 months” – but the fact is when you can get a loan approval with a credit union that has an effective APR of 9%, it’s the only smart thing to do!

If you can clean up all of your debt in one year…….then why not. It beats the hell out of paying 18% to 25% on credit cards.

The total amount of money paid back to the CU was $47,000 (and change), with a total of $2200 in interest on the note. All of this was wrapped up 12 months later when this borrower was able to start over with a clean slate. It wasn’t easy though, and the extras in life had to be put aside for one year. A small price to pay for some financial security that was long overdue.

This credit union has offices throughout Maryland and in neighboring Washington DC. They have offices in Alexandria, Columbia, Arlington, Westminster, and Bethesda as well.

This credit union is now in our list of approved lenders that we have checking out all of the applications that run through Financing-USA.com, and they have a reputation for being an honest lender / couldn’t resist the plug – sorry 😉

Reason for 1 Year Loan: To Consolidate Credit Cards

  • Visa Card Balance: $4758
  • Mastercard Balance: $23890
  • American Express Balance: $12840
  • Dept. Store Credit Card Balance(s): $1200
  • Gas Credit Card Balance(s): $743
  • Total Credit Card Debt: $43431
  • Finalized Approval of Loan: $45000
  • Effective APR: 9%
  • Monthly Payment Amount: $3878.90
  • All Paid To Lender: $47193.34
  • Interest on Loan: $2193.34
  • CU Loan Term Length: 12 months/1 year
  • Credit Rating (FICO#): 623
  • Loan Nomenclature: CCCL
  • Area of Residence: Townson, Baltimore, MD
  • Other Credit Unions Nearby: Washington DC, Alexandria, Arlington, Bethesda, Columbia, Nottingham, Westminster
  • City of App. Origin: Baltimore
  • State of App. Origin: Maryland
  • Lender Class: Credit Union

Credit Union in Jackson Mississipi 12 Month Installment Loan

1 Year Loan in Jackson MS (12 mo. installments)

The third and final application was processed and approved by a credit union located in Jackson Mississippi. We haven’t actually documented many loans from the area of Jackson, or in the State of Mississippi for that matter. We will be rectifying that situation in the months to come. This was also a 12 mo. loan that took place back in 2011.

The borrower was a young woman who had some relatively small credit card balances she wanted to consolidate into one monthly payment. The effective APR she ended up getting approved with this  Jackson-based credit union was 14%. Once again, this is still much better than what the credit card companies were charging her for interest.

The finalized loan was $5000 to be paid back with 12 installments beginning in May of 2011 and ending in April 2012. Her total credit card balances were held on her Visa Card and her American Express card. Her American Express card had a $3900 balance and her visa was $1200. She can get approved by her bank which is Country National Bank in Jackson at the branch located at W. Cortland St. and S. Blackstone street.

The credit union she got the loan with approved her even though she had a miserable credit score of 440, and she has some defaulted the payments on her Visa card. Why you ask – because she holds a steady job as a dietitian working at Allegiance Health in Jackson. She has been there for over eight years and makes a steady, solid income.

The reason she ended up being in debt in the first place is because she went through a divorce and she had been struggling with her finances ever since she became a single mother. Recently, she has got her act together and reduced her monthly payments to creditors, as well as getting a raise in her new position at Allegiance.

Some of the other areas this credit union has branches include; Hattiesburg, Laurel, Birmingham Alabama, New Orleans Louisiana, Ann Arbor, Battle Creek, Charlotte, Lansing, and Fowlerville.

Reason for 12 Month Loan: To Consolidate Credit Cards

  • Visa Card Balance: $1200
  • Mastercard Balance: n/a
  • American Express Balance: $3900
  • Dept. Store Credit Card Balance(s): n/a
  • Gas Credit Card Balance(s): n/a
  • Total Credit Card Debt: $5100
  • Finalized Approval of Loan: $5000
  • Effective APR: 14%
  • Monthly Payment Amount: $475
  • All Paid To Lender: $5700
  • Interest on Loan: $700
  • CU Loan Term Length: 12 months/1 year
  • Credit Rating (FICO#): 440
  • Loan Nomenclature: CCCL
  • Area of Residence: Jackson, Mississipi
  • Other Areas with Credit Unions: Gulf Port, Hattiesburg, Laurel, Birmingham AL, New Orleans LA
  • City of App. Origin: Jackson MS
  • State of App. Origin: Mississipi
  • Lender Class: Credit Union

Conclusion – 12 Month Loans with Credit Unions in MS, OH, and MD

This concludes our quick study on these three credit union loans that were all 12 months in term length. It’s no surprise that consumers are more often than not finding some better interest rates and terms with CUs, as opposed to large traditional banks such as the Bank of America, and Key Bank for example. Finally, there seems to be a bit of a loosening going on in the consumer lending industry since the recession of 2009, but we have a long way to go yet before there is some full-on liquidity in these markets.

Consumers and small business owners are struggling, and we can only hope that more credit unions begin to loosen up their purse strings and let the cash flow.

Getting approved for a 12 month loan is not an easy task. All of these borrowers spent a lot of time tracking down honest lenders who would deal with them in an honest way, with no small print and no predatory practices in play. If you want to find a loan for a 12 month term we suggest trying your local credit unions first before trying any of the major banks in your city. You can also use our application form below to let our lenders see your request for funds.