1. With us, you have a better chance of getting your loan approved.
So how do auto loans work from credit unions? Even though the loan application process is the same and the underwriting process is similar, the credit union may make some adjustments that a commercial bank would not. Many credit unions are also more inclined to listen to their members’ needs and unique situations—sometimes adjusting terms of a loan accordingly.
2. We have lower rates.
A five-year term is the most common loan term for a new or used car, and rates at a credit union are typically much lower than the average rate at a competitor bank. The savings in interest alone is a major reason to consider this financing. Just think of what you can do with that money.
3. We provide personalized service.
Because they are non-profit organizations and work to provide members with high-quality customer service, operations decisions are made by a group of volunteer board members rather than a corporate office. You can openly discuss your concerns about your loan, talk about flexible repayment options, and review your financial situation with a professional lending officer. This can alleviate some of the pressure of applying and securing financing for your vehicle and you can be more confident that the credit union is working with your best interests in mind.
4. We offer educational resources.
Many credit unions will provide information such as financing options and how to make the best decisions when assessing the value of your car purchase. If you’re a first-time car buyer and apprehensive about the loan process, you can turn to a credit union for unbiased answers.
5. We offer a non-sales approach.
Unlike commercial banks, which often give their lenders bonuses or some type of compensation for the loans they get approved, credit unions, as not-for-profit financial institutions, work for their members and do not try to sell you something you don’t need.
The bulk of a credit union’s profits go back to members in the form of lower rates on financial products and more flexible loan options. If you don’t like the pressure of working with lenders from a commercial bank, best credit union for car loan is the answer.
If you want to know more about how long do you have to be a member of a credit union to get a loan or the usual credit union car loan requirements, visit our website now!