Best Credit Union Auto Loan

What To Know Before Applying For An Auto Loan

When looking for a car loan, it is best to shop around with a few lenders before making your decision. Each lender has its own methodology when reviewing your application for a loan and setting your interest rate and terms.

Generally, your credit score will have the biggest effect on the rates offered. The higher your credit score, the lower APR you will receive. Having a higher credit score may also allow you to take out a larger loan or access a broader selection of repayment terms, but there are still ways to finance a car with bad credit. Choosing a longer repayment term will lower your monthly payments, although you will also pay more interest overall.

If you find a few lenders that you like, see if they offer preapproval going through this process will let you see which rates you qualify for without affecting your credit score.

Best Credit Unions For Car Loans

Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

If youre shopping for a new or used car, dont overlook a local or national credit union. As member-owned institutions, they typically offer lower auto loan rates than banks or other lenders. For example, the average APR for a 60-month new car loan at credit unions was 2.87% compared with 4.78% for banks, as of Q2 2021.

The catch with a credit union is that you must be a member to get a loan. Membership requirements may include living in a particular area or working for specific organizations and companies. However, some credit unions have nationwide membership, so joining may be easier than you think.

We have identified seven of the best credit unions with the best car loan rates.

How To Refinance A Car

To refinance an auto loan, gather all the necessary documents. Then, evaluate your credit profile and your car’s information to determine if refinancing is beneficial and if you qualify. Lenders will post their requirements online and some even allow you to file for pre-qualification.

Before starting the application process, shop around and compare offers from different auto refinance lenders. When you settle on the best one, submit a formal application and wait for the lender’s formal offer. If accepted, you can finalize the document, settle the previous loan, and start your loan payments with the new lender.

You May Like: Orion Federal Credit Union Memphis

Our Editorial Review Policy

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the contents accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our sites advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our sites About page.

Navigate Your Auto Purchase With Ease

Buy your new or used car using our one-stop shop.

Car buying service

$1,062

FAIRWINDS Credit Union auto loan

FAIRWINDS rates as low as 2.4%APR New Car – 36 Mo

5.06%APR New Car – 36 Mo

$1,062 is the difference between the amount paid in interest between FAIRWINDS Credit Union’s rate at 2.40% APR compared to 5.06% APR for the National market average over the life of a $25,000 auto loan over 36 months.

*Based upon independent research conducted by Datatrac for 134890 financial institution locations in the National market as of October 9, 2022.APR = Annual Percentage Rate

Don’t Miss: Who Owns Navy Federal Credit Union

No Detours And No Delays Whether You’re Buying A New Or Pre

• Competitive, low rates for new and used or refinanced vehicles 1
• Fast, easy, secure application that gives you an immediate decision
• Easily manage your account online and with our mobile app
• CUTX offers an Auto Protection Program2 including GAP, VSC, CVP and Payment Protection options
• Use our Car Buying Service to search for your next new or used vehicle and lock in a great price

Best Car Loan Rates: Conclusion

You can find the best auto loan rates for you through banks, credit unions, online lenders, and dealers. There are also a variety of factors that affect your interest rates and many methods for you to get the lowest rates possible. We encourage you to look around and compare your options to find the best auto loan for you.

You May Like: Hyatt San Francisco Union Square

Raise Your Credit Score

You can do a few things to get a lower interest rate. For example, you can raise your credit score over a few months to a year if you work hard at it. Even 20 or 30 points can move you up a bracket and make a big difference in your auto loan options. You can also make a larger down payment to reduce your APR.

We Can Make That Dream Vehicle More Affordable And Within Your Reach

If you have your eye on a new car, found a great deal on a used vehicle or want to refinance a higher-rate loan from another financial institution, our best-in-market auto loan rates can help you fit comfortably in the driver’s seat. LOC Credit Union has some of the best auto loan interest rates around. Preapproved auto loans are available for those who qualify so you know how much you can afford to spend before you start shopping.

Our auto loans offer:

• Low fixed rates on new and used autos
• Up to 115% financing
• Ability to lock your rate in for up to 45 days while you shop
• Flexible terms up to 120 months for some vehicle purchases based on year and dollar amount
• The ability to leverage any equity in your vehicle to pay off higher-rate debt elsewhere at the rate of your auto loan
• This option is perfect to simplify your debt into a single low rate payment and is available even if your car is paid off
• Not sure of your car’s value? Check Kelly Blue Book or Edmunds

You May Like: Central Willamette Credit Union Albany Oregon

Penfed Credit Union Reviews

PenFed is not accredited by the Better Business Bureau and is not currently rated by the organization.

Customer ratings for PenFed Credit Union are among the highest in our research. The organization has an impressive 4.6-star rating out of 5.0 on Trustpilot. Customer ratings are considerably lower on the BBB website, however, where reviewers give PenFed nearly 1.2 out of 5.0 stars.

Positive reviews consistently mention a smooth and easy loan application process and low rates. Customers reporting negative experiences tend to mention slow processing times for loan applications.

Our team reached out to PenFed Credit Union for a comment on these reviews but did not receive a response.

Star One Credit Union

Star One offers loans on new and used vehicles and will finance vehicles less than 10 years old. You can also get a loan for up to 100% of a Tesla for seven years and classic cars up to 80% as well. Loans are also available for RV, boats and motorcycles. The credit union also offers optional major mechanical protection plans, GAP insurance and credit life and disability insurance. You can apply online and get preapproval so you can compare the dealers financing offers.

Star One serves Silicon Valley in Santa Clara County, Calif., and several surrounding counties, employees of corporate partners and immediate family members.

Recommended Reading: Does Publix Have Western Union

Do Credit Unions Perform Credit Checks

While credit unions are famously customer-friendly, they must operate responsibly for the good of their members, who are also the owners. Therefore, credit unions are just as likely as banks to check your credit when evaluating a loan application.

Typically, credit unions will pull your credit history from one of the three national credit bureaus. Strongly derogatory information on a credit report will certainly complicate your attempt to arrange a personal loan.

Most credit unions also subscribe to the ChexSystems Consumer Banking Report to review the history of your bank accounts. This report contains only bad news, such as mishandled accounts, outstanding debts, unpaid overdrafts, fraudulent activity, check kiting, collections, and other troubling behavior.

The Consumer Banking Report can harm your chances of receiving a loan but do little to boost those chances. In other words, it has an asymmetrical impact.

However, its also true that credit unions often look beyond credit scores when evaluating loan requests. A lot depends on your relationship with the credit union and with your loan officer.

For example, you may join a credit union as part of a campaign to overcome previous financial missteps. Credit unions often offer financial counseling and credit builder accounts. Becoming actively involved with your credit union cant help but improve your perceived creditworthiness.

Security Service Car And Truck Loan Rates

To view rates, enter your zip code above.

Your zip code is required so we may provide you with accurate rate information.

Membership eligibility required. Subject to credit approval.

APR= Annual Percentage Rate. Rates effective as of 11/2/22. Final rate is determined based upon term, creditworthiness, amount financed, and other criteria. Other restrictions may apply. Rates are subject to change without notice.

*Your purchase of GAP Advantage with PowerBuy® is optional. Whether or not you purchase GAP Advantage with PowerBuy will not affect your application for credit or the terms of any existing credit agreement you have with the financial institution. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under GAP Advantage with PowerBuy. Carefully read the contract for a full explanation of the terms.

The minimum amount to finance for 60 month terms is $10,000.00. The minimum amount to finance for 66 month terms is $15,000.00. The minimum amount to finance for 67-75 month terms is $20,000.00. The minimum amount to finance for 76-84 month terms is $25,000.00. For vehicles over 100K miles, an additional 1.00% will be added to the rate.

View our Vehicle Loan Payment Examples.

Security Service offers a variety of terms and rates to assist our members in purchasing vehicles. Based on the year selected, the available terms and rates are displayed above.

INSIDE

Read Also: Vermont State Employee Credit Union

Our Top Picks For Best Auto Refinance Companies

• LendingTree Best Marketplace
• RateGenius Runner-up for Best Marketplace
• OpenRoad Best for Low Credit Score
• AUTOPAY Runner-up for Best for Low Credit Score
• Caribou Best for Fair Credit
• myAutoloan Runner-up for Best for Fair Credit
• LightStream Best for Any Kind of Vehicle
• Digital Federal Credit Union Best for Newcomers to Credit Building

Auto Loan Ontario Provides Canadian Bad Credit Car Loans

If you need a car loan or truck loan in Ontario you have found the best loan company in Ontario! Why go to a car dealer and try to get approved? Get Pre-Approved for your Ontario car loan before you ever leave your home or office. This gives you the power to choose the vehicle of your choice that is affordable for your budget and suits your needs and lifestyle.

Stop spending money on frustrating expensive vehicle repairs fixing that old car or truck you may be driving…you are wasting your money. Don’t let past credit issues hold you back from upgrading your old tired automobile to a new or newer vehicle. Now you can get approved for a car loan in Ontario from the comfort of your home or office with your privacy assured. Don’t settle for less just because you have bad credit, have a bad credit rating, no credit, bankruptcy or collections. No application denied!!

Don’t Miss: Teachers Federal Credit Union Riverhead

How To Get An Auto Loan

Once you find the right auto loan for your situation, follow these steps:

1. Shop around. It is usually best to compare rates and terms from at least three lenders before moving forward with an auto loan.

2. Prequalify. Prequalifying with lenders lets you see your potential rates without a hard credit check.

3. Complete your application. To complete your application, you will likely need details about your car, including the purchase agreement, registration and title. You will also need documentation like proof of income and insurance, proof of residence and a driver’s license.

4. Make payments. Your payment schedule will start as soon as you receive your auto loan. If needed, set up a calendar reminder or automatic payments to keep you on track with your monthly bill and avoid late payments.

Should I Finance Through The Car Dealership

Financing your car purchase at the dealership is convenient because it allows you to shop for a car and a loan in one place. Dealers recognize the value of convenience, and if thats your number one priority, getting an auto loan from your dealer is a great option.

Another benefit of getting your auto loan through the dealership is that they might offer you a rebate if you choose to buy your car and finance it with them. If youre offered a rebate or any kind of special, just make sure you read the terms and conditions carefully before signing any paperwork.

Borrowers who have below-average credit , may also find that the dealership is more willing than a bank or credit union to finance their vehicle purchase. Of course, it will cost you more, but it may still be your best or perhaps your only option.

Financing through the dealership has some drawbacks that every borrower needs to consider. First, the dealership rarely has the most competitive interest rates. In many cases, the dealer is just a middleman who connects you with their lender partners, either marking up the interest rate and profiting from the difference or earning a commission on your loan.

Finally, car dealerships may have a reputation for using high-pressure sales tactics, and while not all salespeople at dealerships are pushy, you might feel uncomfortable with their style of doing business.

Don’t Miss: Credit Unions In Cleveland Ohio

Compare Auto Loan Rates In September 2022

• Auto Loan Rates

• Wide range of repayment options

Cons

• Good to excellent credit required
• No prequalification offered

Who this lender is best for: Lightstream is best for those looking to finance their vehicle as soon as possible and prefer a fully online experience.

Impact on financial wellness: You will undergo a hard credit check following application submission you cannot prequalify to check your rates ahead of applying.

Time to receive funds: Funds become available as soon as the day you apply.

Fees: Lightstream has no fees.

Additional requirements: While credit requirements are not disclosed, the most competitive rates will only be offered to those with excellent credit.

Special features: Repayment terms ranging from 24 to 84 months and the ability to borrow as much as $100,000.

• Discount for members only
• High minimum loan amount

Who this lender is best for: Best if you intend to finance your vehicle via a dealership rather than fully alone. To receive the most competitive rates, it is also best for those that hold an account with Bank of America.

Impact on financial wellness: Following the application, you can expect a hard credit check.

Time to receive funds: Funds will become available as soon as the same business day.

Fees: You can expect to pay title and state fees in some states

Additional requirements: Bank of America requires that the car you’re financing be no more than 10 years old, with no more than 125,000 miles and valued at no less than $6,000.

Good New And Used Car Loan Rates

For an auto loan term of 48 months, good new car loan rates from credit unions are 2.67% or lower while good new car loan rates from banks are 4.60% or lower. New car loan rates tend to be lower on average, but loan rates for used cars are slightly higher. To put this in perspective, below is a table comparing new and used auto loan rates with different terms.

Average New And Used Car Loan Rates

You May Like: Teachers Federal Credit Union Login

How To Apply For An Auto Loan

Although there are some small differences in how you apply for an auto loan depending on the lender, the process is mostly consistent. Hereâs a step-by-step guide to applying for an auto loan: