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Those with a high credit score and a strong financial history may be eligible for a lower interest rate, while those with a lower credit score or a less-than-stellar financial history may be charged a higher rate. This can be especially useful in an emergency situation, such as a car breakdown or medical expense.

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The bank will then review this information to determine whether the in borrower is eligible for the loan and, if so, how much they can borrow and at what interest rate. Community involvement: Credit unions are often closely tied to the in communities they serve, and they may offer special loan programs or discounts to members who live or work in those communities.