Financing a new car is hard, but credit unions offer easy-to-use financial services that can make it easier to get a loan. If you don’t have great credit or are buying a cheaper car and only need a smaller loan, a credit union might be the best place to get one.
Still not sure if you should get an auto loan from a credit union? Let’s look at how credit union car loans work and why they are an excellent way to pay for a car.
Five Advantages of Obtaining A Vehicle Loan From A Credit Union
Are you ready to consider how getting an auto loan from a credit union can help you? Let’s talk about some benefits of obtaining a vehicle loan from a credit union.
Lower Rates
Credit unions are not-for-profit organizations that reinvest their profits back into their members. Because of this, credit unions are often able to offer lower rates to their members than other types of lenders. Credit union vehicle loan rates might be 1% to 2% less than the average rate offered by banks.
Personalized Service And Investment In The Community
When calculating the terms of your auto loan, customer service may not be your priority. But it is an advantage! Since credit unions are typically smaller than banks and have strong relationships with the areas they serve, you will work with employees who understand your situation better than a large bank.
Suppose you have a low credit score or need help making future payments. In that case, the individualized care you will receive from a credit union could mean the difference between financial success and a financial disaster.
Reduce Lending Minimums
Because credit unions are focused on what their members need, they often have lower minimum loan amounts than banks. If you are buying a cheaper car or can make a big down payment to lower the funds you need to borrow, a credit union is more likely to work with you to reduce the amount you need.
Simple Loan Application Method
While the fundamental elements of the loan proceeds are the same at a credit union, you may likely complete them online or over the phone with less paperwork and meetings. You will also save money for your other banking needs and get more individualized financial advice.
Simple Membership With Improved Approval Odds
The requirements to become a member may appear to be a disadvantage of obtaining an auto loan through a credit union, but it’s actually a benefit! The process for joining the majority of credit unions is easy and quick, and it opens the door to many other financial opportunities. If you search for credit unions in your area, you will likely find several.
Being a credit union member improves your chances of obtaining an auto loan. When it comes to lending money to members, credit unions can be more flexible than banks, which have strict rules about who can get loans. If you have less-than-perfect credit, you may have a greater chance of being approved at a credit union like Heritage Financial Credit Union. For more details, get in touch with Heritage Financial CU today.