Posted on: 26 November 2014Share
Credit unions are similar to banks, except that they are member-owned. Because of this, they offer great products to members. If you are planning on buying a new or used car in the near future, here are three reasons you may want to consider applying for a loan at a credit union.
Credit unions generally offer lower interest rates on car loans than banks and other lending institutions. Credit unions are non-profit organizations. Because of this, they offer higher rates on savings accounts and lower rates on loans. Any profits they end up making go straight back to the members of the union.
When you get an auto loan with a credit union, you will also save money on fees. The fees they charge for loans are lower than the fees banks charge. If you are not currently a member of a credit union, you may need to join one before you apply for a loan. Most credit unions will only issue loans to members.
They Offer Loans to People With Bad Credit
The second reason to consider getting your loan from a credit union is that they don't take bad credit into account. Traditional banks have high standards in place, and they will only offer loans to people that met these standards.
Credit unions tend to work with people that have bad credit easier than banks will. According to U.S. News, a credit union will often listen to you as you reveal your situation and reasons for your credit problems. They may take this into consideration and approve a loan that a standard bank would not.
Finally, when you get an auto loan from a credit union, you will have more say when it comes to the terms of the loan. You may actually be able to choose the exact duration of the loan, which may allow you to save money on the purchase. Credit unions are also fairly good about offering loans for new and used cars.
You may also notice a difference with the way loan officers act at credit unions compared to banks. At a bank, a loan officer might work on commission. This gives loan officers incentives to push certain types of loans because of the income they will earn from these. Loan officers at credit unions are not like this. They want to help each customer find the right products, and they will only offer products that are beneficial for customers.
If you are ready to buy a new or used car and need a loan, visit a credit union like TLC Community Credit Union today. They can help you find a great loan for the car you want to buy and for your needs.