Why Not Try A Credit Union Car Loan
Purchasing a car is a big investment and many people don’t have the cash it takes to make this kind of purchase.
However, for these types of larger purchases, loans are available that can help you to get the vehicle that you need.
Of course, when you’re searching for a car loan, you have a variety of options. However, one option that you may want to consider is going with a credit union car loan.
In many cases, you’ll be able to enjoy more benefits with this type of a loan than you will with loans from other types of lenders.
Here is a closer look at credit unions, the benefits they offer, tips for qualifying, and more helpful information you can use.
What is a Credit Union?
Before deciding to go with a credit union car loan, you may be wondering what a credit union really is. Basically a credit union is a type of financial institution that includes people that have a specific bond, such as a union, a business, or even a church.
The assets of these people are pooled, allowing loans to be made to other people. It’s important to realize that members of a credit union are not considered shareholders.
However, members do enjoy benefits like low rates on loans, fewer service fees, higher rates on savings, and more. You may be surprised to find out that credit unions actually provide a large portion of auto loans and can offer excellent credit union car loan rates.
Benefits of Going with a Credit Union Car Loan
If you decide to go with a credit union car loan, you’ll find that this type of a loan definitely offers some excellent benefits. One of the main benefits you’ll enjoy is the easy of obtaining these loans.
Usually it is easier for you to get a loan when you go with a credit union. Credit unions are designed to help their members get help when they need it, which means you are more likely to get that loan, even if your credit isn’t quite perfect at the time.
This means that even during tough economic times, you can still get the loan you need so you can purchase a vehicle.
Another great benefit of going with a credit union for your car loan is that usually the credit union car loan rates are lower than the rates charged by other types of financial institutions, including most banks.
Usually you’ll be able to get reasonable rates that make a credit union car loan an excellent choice. You’ll also find that these credit unions often offer 100% of the price of the car you want to buy.
This also makes it easier for you to purchase a car since you may not have to come up with a large down payment before purchasing.
Qualifying for a Credit Union Car Loan
Of course, while qualifying for a credit union car loan may be easier than qualifying for loans from other financial institutions, you still will find that there are certain criteria that you have to meet.
If you’re buying a car for the first time, there are some things to keep in mind that can help you to qualify for the loan that you need.
First, it’s important to work on strengthening your credit rating before you apply. Make sure you have established a bit of credit history.
If you don’t already have a credit history, simply applying for a credit card with a small balance and paying on time can be enough to establish a history that will look good to the lender.
When it comes to qualifying for a credit union car loan, you’ll also need to show that you are steadily employed as well.
They want to see that you have at least had a job for a year and sometimes they may way to see a job history of 18 months, depending upon the credit union.
If you show you are employed, it shows that you have the income to pay off a loan and also shows that you take financial responsibility.
In some cases, you may want to offer a down payment. This can show lenders that you are serious about the car loan, although not all credit unions will require you to pay a down payment.
If you are not able to qualify for the credit union car loan yourself, you may want to consider having someone co-sign that loan for you. This can help if you don’t have a credit history or if your credit is on the weak side.
A good cosigner may help you get the loan that you need as well as providing you with better credit union car loan rates.
Compare Loans to Save Money
Last, even if you are considering a good credit union car loan, it is a good idea to compare the loans available to you.
Check out various credit unions and don’t forget to check out the rates and terms that other financial institutions can provide as well.
While you’ll usually find that the rates of credit unions are reasonable, take the time to shop around.
Most of the time, you will find that your credit union is able to offer you great terms and rates on the car loan that you need.