If you are in the market to purchase a used or new car, you may want to seriously consider working with a credit union to secure the loan you need for your vehicle.
#1: Low-Interest Rates
One of the biggest reasons to consider working with a local credit union is that they generally offer lower interest rates than big traditional banks. As a credit union is a not-for-profit institution, unlike a bank, it can offer lower interest rates on loans to customers. It is a benefit they provide and a way to ensure that they get the business they need to thrive.
Getting a lower interest rate is a big deal. Being able to save a percentage point on more on your car loan can save you some serious money on what you end up paying for the vehicle. A higher interest rate will increase the total price you will pay for the vehicle, which is why you want to shop around and find a low-interest rate.
#2: Personalized Community Service
Next, working with a credit union, you will enjoy more personalized service due to the credit union's community ties. Credit unions are much smaller than banks, and they have closer ties to the communities where they are located. They are going to be more flexible with the underwriting process. They are going to look at not just your credit score but also at your personal story. The underwriting process usually has to follow a strict criterion at a big bank, and your personal story doesn't matter that much.
If you have a unique financial situation, you are more likely to get the support you need from a credit union than from a big, national lender.
#3: Easy Application Process
Back in the day, you have to go into the credit union to get your auto loan. Now, most credit unions have more user-friendly ways for you to complete your credit application. You may be able to complete the application at an auto dealership they have a relationship with, or you may be able to complete the application online or even over the phone.
In general, it is best to work directly with the credit union, so if you want a loan, give them a quick call and see what the process is like. Keep in mind that when you personally speak or meet with someone, you will be able to provide context behind the numbers.
Remember, to get a loan from a credit union; you will have to join the credit union and become a member. It is free to join with most credit unions, or you will be charged a very small nominal fee.
Once you become a member, you can use all of their services. Credit unions offer lower costs and rates on other financial products, such as home equity loans, unsecured personal loans, and even mortgages. You can set up a checking and savings account with them as well.Share