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5 Reasons to Consider an Auto Loan from a Credit Union

Credit unions are not-for-profit financial cooperatives. The best ones offer loans, checking accounts and credit cards, much like traditional banks. But they charge lower fees and interest. This is because these institutions work to promote the well-being of their members, rather than focusing on their own profits. This allows for narrower operating margins and reasonable rates.

No wonder the market size of credit unions in the US stands at $81.6 billion in 2021, having grown 4.5% each year on average since 2016. So, if you are planning to buy a vehicle in the near future, consider an auto loan from a trusted credit union. Here’s why.

1.      Reduced Rates

You could access subsidized rates by opening additional accounts with a reputed credit union along with rates starting as low as 2.24% for new cars. This makes upgrading to a new vehicle financially less burdensome. The interest rates for used cars start at just 3.24%. Up to 100% financing is available for the entire purchase.

2.      User-Friendly Process

The top credit unions offer online account application. The entire procedure is simple and convenient. You are eligible for membership if you are 18 years and older, with valid government-issued identification. You can also continue an application that was previously saved. Don’t hesitate to call the customer hotline in case of any questions.

3.      High Approval Potential

Commercial banks are quite stringent about the minimum credit score required. But credit unions can work with less-than-perfect scores. You can still access minimum fees and reduced borrowing rates that serve the community and the interest of the members. So, you actually save money on auto loans.

4.      Personalized Services

Credit unions put their users first. The solutions, therefore, are tailored to fit your needs. A group of volunteers offer a human touch to the process. This eases quite a bit of the pressure, since you can openly discuss all your concerns. The lending officer can review your financial condition and offer the best-suited loan solution. Get in touch with the top credit union, such as those in New Jersey, to start a conversation.

5.      Non-Sales Approach

Credit unions don’t sell you unnecessary products. This is especially useful for new members, who might not have fair knowledge of the banking world. So, there is no sales pitch, unlike commercial banks that send out regular emails. All of this is because credit unions are non-profit organizations with a member-centric approach.

Expert credit unions offer financing for all types of cars, brand new or pre-loved. Loan approval chances are higher, along with plenty of perks. It could be the most viable option in 2021 and beyond for auto loans.

 

 

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