| If you have recently found yourself with a less than perfect credit score but are still in need of a car loan, maybe you should consider looking into interest rates from credit unions.
You may find that the interest rates from credit unions are lower than those you will get offered by a bank because banks have to provide reports on profit margins every quarter to their stock holders.
Of course, this may also mean that the credit union may be more stringent in who they lend money to, but do some research anyway and find out if they give out damaged credit loans and what the rates are they charge.
Even if they charge a rate that is one percentage point less than your bank, you could still save hundreds of dollars over the life of the loan.
If this seems like it might be the way for you to go then go to your local credit union and join. You must be a member of this type of financial institution before they will consider lending you money.
Many of these institutions require certain criteria be met before someone can join and open an account such as, being employed by a certain company in the area, living in a specific area, or being a member of, or having served in, our nation's armed forces. Some will even check your credit score and if it is not high enough they will deny your request to join.
Over the past few years, however, many of these institutions have relaxed their membership requirements in order to attract more members. Plus, opening an account in a credit union entitles you to some perks. Lower and fewer account fees being on top of that list.
The best advice I can give you if you want to try this is to go into your local branch and talk to a teller or personal account manager or loan officer. Any of them should be able to tell you the steps to take to open an account or process to follow for applying for a loan.
Be sure to get all the information you need on fees and the APR they charge for their loans so you can make an informed decision before committing to anything.
Word has it that if your credit score is 600 or below you might find it easier to talk to another type of lender but if you can keep your credit score above 600 then a credit union is your most likely source for getting the loan you need for the car you want.
Too many people are ready to scam you out of your hard earned money these days so do be careful when looking for a loan and do not settle for the first one that states your credit is not a problem. You could still be subject to paying a huge amount of interest or other fees that they decide to tack on.
Talk to a reputable source and definitely check out interest rates from credit unions in the process. |