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Best Used Car Financing – If you are a member of the credit union, you may be wondering whether it would be better to get a car loan through them or a dealer. If you have bad credit, credit unions are known to be softer, but special financial dealers may still give you the best chance of getting approval in the end.
Getting Credit Car from Credit Union
How to Get Credit Car from union Credit UnionCredit is a popular financial institution for many consumers because they are nonprofit. They often charge less to their members, offer credit at competitive prices, and are more lenient if members have less than perfect credit.
Credit unions are also becoming an increasingly popular place to apply for car loans. In recent years, they have increased their presence in the automotive lending market. According to Experian, credit unions see the highest growth of all types of lenders in the market share of auto loans in the first quarter of 2018. In the first three months of 2018, credit unions represented 21.3 percent of the total market share of car financing. Of all loans for new vehicles, credit unions finance 13.5 percent of them, as well as 28 percent of all used car loans.
Of course, to get a car loan from a credit union, you must become a member with them in order to qualify. Anyone can join someone by opening an account to get a share in a credit union, but where you qualify for membership is usually dependent on where you live or your affiliation with specific groups such as your employer or residence.
But once you become a member, applying for an automatic loan is as simple as contacting them and saying you want to apply. If you visit directly, you may be asked to sit with a loan officer to discuss your situation before filling out an application. If they approve you, they will give you the maximum loan amount and you can shop the car within that price range.
Get Credit Car from Credit Union with Bad Credit
On the other hand, getting pre-approved for car loans with credit unions can be more challenging if you have bad credit. Credit unions are direct lenders and, typically, this type of financial institution is more strict about the credit scores required to qualify. In general, many direct lenders automatically reject applicants who do not meet their credit score requirements.
However, having an existing relationship with a credit union can make a difference. If you have been a member in a good position for a long time, they may be more willing to offer you a car loan even if your credit is less than perfect.
If you are a member of a credit union, have bad credit, and require an auto loan, you must first go to your credit union in your search for financing. Although bad credit can be a barrier to approval, it could not hurt to try. But if you find that your credit is blocking, the next step is to apply through a dedicated financial dealer.
Should I Get a Car Loan through Credit Union or Dealership?
For many car buyers dealing with bad credit, specialized financial dealers offer a better chance of being approved than credit unions. These dealers work with subprime lenders who have loan programs designed for borrowers with bad credit.
Although subprime lenders rarely lend directly, you can be financed by someone by working with a dedicated financial dealer. So how do you find one of these dealers in your area? Auto Credit Express can help with that.
We work with specialized financial dealers across the country, and we want to match you with local dealers who can provide auto financing options. All you need to do to start the process is to fill our secure auto loan request form. Our services are free of charge and obligation, so you can start with confidence today!