When people look around to buy a new car, some of the first places they go to are either banks or the dealerships. But, what many people are not aware of is that credit unions are an excellent option for an auto loan. Large banks have certain advantages over credit unions. But, the deals offered by the latter are something you shouldn’t miss. Here are a few good reasons why you should explore what a credit union has to offer when it comes to a car loan.
You are an owner in a credit union
When you open an account in a bank, whether it is a checking or a savings account, it makes you a customer of that bank. And it’s not a bad position to be in at all. You will get the services you need. You have to follow the standard protocols when managing your accounts and finances. But, things are different with a credit union. Signing up for a credit union makes you a shareholder in the institution. It means that you are not a customer but a co-owner. And what does it mean for you? As a customer-owned institution, a credit union does not have to pay to any third party investors. It is a non-profit organization. So they don’t take advantage of every chance they get to nickel-and-dime their members. Credit unions make sure to provide their members the best financial benefits available.
Credit unions offer lower interest rates
One of the main reasons to choose a credit union, interest rates are lower by 1 percent compared to banks. This financial institution is very competitive compared to other lenders. And it is not limited to car loans. Even the interest rates for mortgages and the fees for other services are lower than banks.
Credit unions offer a more personalized service
There isn’t much of a difference when processing an auto loan with a bank or credit union. You will be asked to speak to their loan specialist. You’ll submit certain documents and everything else is pretty much the same. Yet what’s nice about a credit union is that they are more flexible and more willing to work with you. They are not very strict with credit issues especially when you have a unique scenario. Your story is more likely going to be heard in a credit union. And it’s something that doesn’t usually happen at larger financial institutions.
The loan process is more user-friendly
Gone are the days when members have to go to the credit union office to process their car loan. Today, loan applications can be done on the phone, online or through an auto dealership. The process is now much easier and user-friendly.
Credit unions offer several other benefits
Because credit unions are owned by their members, they enjoy the profit earned. Members get to enjoy these benefits in the form of lower costs and interest rates. You also receive member education. This will guide you to the best financial options for your situation.
It’s easy to become a member
Often you can only become a member of a credit union if you are a part of a certain group, organization or industry. Most credit unions today will allow anyone to join.
Car loans are one of their primary products
A lot of auto dealerships will refer customers to a credit union for an auto loan before they refer them to a bank. It’s because car loans are a huge part of what credit unions do. They have better and more favorable pricing when it comes to car loans. It is one of their core services.
To get an auto loan with a personalized touch and better interest rates, a credit union is your best bet. For more information, you can contact Calcite Credit Union and request to speak to a loan officer.