Have you ever gotten a credit union car loan? If you have, you will probably never get a car loan from anyone else. It seems that Credit Unions became very popular about 20-30 years ago. The biggest discussion about them is the way they do business as well as the great services that they offer to their members. When you first visit a credit union and begin comparing interest rates, you should brace yourself for a big shock – in most cases.
Understanding the Role of Credit Unions
They are actually non-profit businesses who serve a specific group of people. Since there are no shareholders to contend with, they pass the savings on to their members. This is why you would be crazy not to get a credit union car loan. The quickest way to verify my last sentence is to check the rates of any of them and see for yourself – it’s pretty amazing actually.
When people become eligible to join one, it is not uncommon to see them move every single one of their bank accounts to their new credit union. Honestly, it is very hard to beat getting a small dividend each month in your checking account instead of a $10 monthly “service fee” – THAT, in itself is amazing.
Requirements of Members
Obviously, with many great deals and solutions, there always seems to be a catch. The catch here is that you have to qualify for membership at a credit union. In most cases, they simply serve a group of people who work at a specific place. For instance, in most states you will see a credit union for state government employees. Other big ones are those set up for armed service members – like the Navy Federal Credit Union.
The deal is if you are not a member of that specific group, then you are not allowed to have membership. However, some credit unions loosened those requirements over the years. For instance, if a family member belongs to the credit union, then they might let you join. Or if your employer serves their specific membership group in some way, some of them will let you join. You judge have to get out there and find which ones you could qualify for. If you ever served in the military, then you will have no problem getting into one of them and getting a great credit union car loan.
So after you join, they will usually give you all sort of benefits and discounts. They will give you a free term life insurance policy, they will give you reduced terms for travel, they will provide emergency auto services that are similar to AAA – or they may even give you a free AAA subscription.
And when you look to apply for a car loan with them, you will be amazed. They will give you guidance as to whether or not you are getting the best deal for the make and model of the car. They will offer you great car insurance terms if you need it. And many of them will provide you a list of “preferred dealers” which means if you buy a car from one of these car dealers, you will get deep discounts and lower interest rates.
Incidentally, this is the best way to get pre-approved auto loan. When you show up at that car dealer with a pre-approval blank check for a car loan, they treat you as a cash buyer and give you an insane deal.
One of the best things about getting auto loans from credit unions is that they will approve your loan within minutes – most of the time.
Read more about getting your credit union car loan here – https://www.dmv.org/buy-sell/auto-loans/credit-union-car-loans.php