A credit union auto loan can be an ideal choice for car buyers who want to save money. These lenders often offer lower rates and more flexible terms than banks or other financial institutions. However, it’s important to do your homework before deciding on any lender. Eligibility requirements and other details that could impact your monthly payment vary by lender.
When shopping for a new or used vehicle, consider getting financing credit union auto loan before heading to the dealership. Securing an auto loan before you shop can give you a better idea of how much you can afford to spend and puts you in a better position to bargain or walk away from the deal.
Credit unions typically require applicants to be members to apply for loans. During the application process, applicants must provide information about their income and employment situation as well as their credit history. Credit unions also look at borrowers’ debt to income ratio and other factors that may affect approval.
Like other lenders, credit unions may have minimum loan amounts. The amount the credit union will lend to a borrower depends on the type of vehicle being purchased and the borrower’s other financial assets. Credit unions are member owned, so they work to “give back” to their members through lower loan rates and other benefits.
This Texas-based credit union offers new and used auto purchase and refinance loans, as well as financing for lease buyouts and specialty vehicles. CU of Texas also offers an online car-buying service for new and used vehicles in partnership with TrueCar that can help borrowers find vehicles near their ZIP code, as well as special member pricing at local car dealers. CU of Texas requires a credit score above 720 to qualify for a new auto loan and above 660 for a refinance.
A Texas-based credit union with branches in several cities, this lender offers new and used auto purchase and refinance loan options. TFCU also offers a unique feature called MyAutoLoan, which lets borrowers manage their auto loan and payments from one dashboard. The site can also show borrowers the potential impact of interest rate changes and other factors on their auto loan payment schedule.
TFCU’s new and used auto loan rates are competitive. This lender also provides a free loan-rate estimator, which doesn’t affect the applicant’s credit score, as well as an auto refinance calculator that shows how much a new loan will cost compared to the current rate. This lender also offers GAP insurance, mechanical repair coverage and other benefits with an auto loan.
A credit union that allows members to apply for an auto loan without having to be in the same location or industry, this Illinois-based lender offers new and used auto purchase and refinance auto loans as well as personal lines of credit. Its online auto loan application includes a live chat option, and it offers a free rate estimate without impacting the credit score. It also offers a 0.25 percentage point rate discount for auto loan borrowers who set up automatic payments.