Auto Loans

When you’re in the market for a new or used vehicle, finding the right auto loan can be just as important as finding the right car. While traditional banks are a common choice, credit union auto loans often provide better value and a more personalized experience for borrowers.

Benefits of choosing a credit union auto loan for your next car purchase include: 

• Competitive auto loan rates: Credit unions typically offer lower interest rates than other types of lenders. Because credit unions are member-owned, not-for-profit organizations, they pass their earnings back to members through better rates and improved services. With credit unions offering competitive interest rates as ways to save, more money can stay in your pocket over the life of your loan.
• Fewer fees: Unlike many traditional lenders, credit unions generally charge lower fees for their auto loans. You’ll often find fewer application fees, processing charges and prepayment penalties. This transparency in fee structure helps when creating a budget for your car purchase.
• Member benefits: Credit union membership comes with perks beyond just auto loans. Many offer financial counseling services to help you make informed decisions about your purchase and overall financial health while teaching you how to save money. They can provide guidance on building good credit practices and managing your auto loan responsibly.
• Flexible terms: Credit unions often offer more flexible loan terms and payment schedules to match your financial situation. This flexibility extends to refinancing options if your circumstances change down the road.
• Streamlined loan approval: Many credit unions have modernized their lending processes while maintaining personal service. This means you can often receive quick decisions on your application without sacrificing the quality of service.
• Personalized service: Unlike large lending institutions, credit unions prioritize building relationships with their members.

Credit unions typically evaluate your FICO Auto Score or VantageScore when reviewing your application. Unlike your regular credit score, the FICO Auto Score ranges from 250 to 900, while VantageScore spans from 300 to 800. A good credit score usually starts around 670 for FICO scores, but credit unions look at multiple factors, including:

• Payment history
• Current debt levels
• Length of credit history
• Recent credit applications
• Types of credit accounts

When applying for an auto loan at a credit union, you’ll need to provide comprehensive information to help the credit union evaluate your application and offer you the best possible terms. This information helps establish your creditworthiness and ensures a smooth application process.

• Personal information: You’ll need to provide your full legal name, date of birth (DOB), Social Security number (SSN) and a valid government-issued photo ID. Current and previous addresses and contact information will also be required.
• Employment and income information: The credit union will need details about your current employer, including how long you’ve worked there and your monthly income. Recent pay stubs or W-2 forms will be requested to verify this information.
• Vehicle information: You’ll need to specify the make, model and year of the vehicle you’re interested in purchasing. For used vehicles, you’ll also need to provide the Vehicle Identification Number (VIN) and current mileage.
• Loan information: This includes the amount you wish to borrow, your preferred loan term and information about your down payment. You’ll also need to provide details about any trade-in vehicle, if applicable.
• Membership information: Since credit unions are member-based organizations, you’ll need to provide information to establish or verify your membership eligibility. This may include proof of residence, employment or other qualifying factors.

The timeline for receiving your auto loan decision typically ranges from a few hours to a few days, depending on your specific situation and application completeness. To help expedite the process, make sure you have all required documentation ready before applying, provide prompt consent for credit report pulls and respond quickly to any requests for additional information. For the fastest possible decision, consider applying during regular business hours and double-check that all information is accurate before submitting your application.