The last several months have brought many changes within the lending industry. Fewer banks are extending credit in the form of loans, and credit cards- frankly no can can predict where the credit card industry is headed. Many consumers have tightened their purse strings and scaled back on purchases to save money and while more and more people are tackling debt the need for financing certain items will continue. So where do you turn if you are looking for a credit card or loan in the current economy? Consider smaller banks and credit unions which offer many benefits that often get overlooked when consumers seek out bigger institutions. Unlike the retail business, bigger doesn't always mean better when it comes to finding the best rates for credit cards and loans. Here are a few reasons why you local bank may be your best option for lending needs.

Serves The Community - As a result of technology many people enjoy the convenience of choosing a bank across the country if they wish. While this can be a great way to save time and streamline your finances you may never see the people who are handling your business. Smaller banks and credit unions operate within the community. They sponsor local events and sports teams. Working with a local lender also gives many people the peace of mind knowing they can stop by the bank and get personalized information or assistance should they have the need.

They Need Your Business - Big name banks have a huge client base to make their money. Smaller banks and credit unions who do not have national recognition must compete for your business and will more often work harder to meet your needs.

Lower Rates - Local lenders may provide better rates and less stringent requirements for loans than larger institutions. Since they have a much smaller client base and need your business to survive-the Bank of Your Hometown, USA will operate under different guidelines when lending money than their larger counterparts.

Personalized Service - Local banks know their customers. You may pass the loan officer at the grocery store or see your teller at soccer practice. These people live and work in your community which often results in more friendly and helpful service. By putting a face to the name both customer and institution can work closely together to ensure your banking needs are met.

Other Services - Local credit unions often offer savings in other areas such as insurance plans or Christmas clubs. Many offer online banking and billpay which combines the convenience of bigger banks with the personal service found locally. They can help you with automotive and home loans, investments and financial counseling as well.

Small banks and credit unions offer the same services as nationally recognized institutions. They do this while operating within your community, often providing greater savings to their clients with personalized service. In the current state of the economy, working with the “little guys” might just be the best way to secure the financing and personal attention often lacking in larger banks.