Why Financing Your Car Loan at a Credit Union Is a Smart Choice

When you’re buying a new or used car, people typically go straight to the local dealership. While dealerships make their own financing programs sound especially attractive, it’s always to your benefit to shop around for the best auto loan rates-starting with local credit unions. Here are some reasons why you’ll find better auto loan rates and more personalized service at a credit union.

You have a much better chance of getting your loan approved if you have second-rate credit or have had some credit problems in the past. They will more likely listen to your personal story over a traditional commercial bank.

A credit union is different than a traditional bank or other lending institution. They offer loans and other financial services to people through a cooperative membership and it is much more than just a place to house a checking or savings account. They show their members financial interest as a high priority and they are not in business to sell their members anything just to inflate loan volumes. Best of all, their profits go back to their members in the form of lower rates on other products and services like savings and loans. There are 377 credit unions in California with over 1550 local offices. Overall, throughout the country, they save their members approximately $8 billion a year in fees, dividends, etc.

Most credit unions offer better rates to their members or other financial institutions. Especially the banks available through the local car dealerships. Whether you have a large or small down payment for your new or used car, they can educate you on the best possible deals for your auto loan. According to the latest report from Informa, the average rate on a $30,000 new car loan from a bank is 4.16% and from a credit union is 2.82%; which is a 32% reduction in rate and equates to a savings of $1,100 over the life of the car loan.

As a member you have access to educational resources. Almost every credit union has a member or resource center where members can educate themselves about financing options and how to evaluate the value of their vehicle purchase. If you are an inexperienced car buyer you can turn to them for an unbiased opinion. Most importantly, they can show you how to calculate the real value of the car you want to purchase, not just what the dealer tells you, which will ultimately affect your final decision.

Enjoy a member-centered approach. Since loan decisions are made by a local volunteer board rather than a corporate office, members have a more personal experience. This local approach gives you the opportunity to discuss your loan options, discuss flexible repayment choices, as well as review your entire financial situation with your personal loan representative. This type of personal interaction takes away the pressure of applying and locking in your financing and you can be assured they are working with your best interest in mind.

A car loan is helpful. But a good car loan can make a dramatic difference in your life. Financing your next vehicle with your local credit union can save you money, reduce worries and minimize hassles. They specialize in good car loans that fit your specific requirements.

allU.S. Credit Union (http://alluscu.com) can help you finance your next vehicle. When you find your perfect new or used car, visit us and we can pre-approve you for the car you can afford that fits your lifestyle and budget. We can make purchasing your next car a fun and stress-free experience! allU.S. Credit Union, Positively Different!

Car Financing for Retirees or Senior Citizens

The major chunk of the driving population comprises of senior citizen and retirees. Some require a car to fuel their leisure needs, while others acquire it as a reward for the long years of hard work. Car financing help you not only in saving your substantial fixed income, but they also act as a medium to procure your car faster as against buying a car with cash. However, the benefits of car financing are far greater than that.

What is the Key Benefit of applying for Car Financing?

Enables you to buy a newer car

Whenever any amount is spent on repair of an old car, it usually burns a hole in your pocket before it needs mending again. With the help of car financing, you can quit spending on repairing and invest the same money into a newer car that will run for a longer period. The best part about it is that the cost is spread over a longer time frame, making it easier to pay. Also, to add to it, planning of finance is in check so you know exactly the amount of payments left for the loan to be repaid.

How can you obtain Car Financing if you are a Senior Citizen or a Retiree?

· Down payment as a means to shorten the repayment period

Down payment refers to the initial payment on acquisition of an automobile and the remaining amount is paid through monthly payments. That way when the down payment is made, the overall amount on the loan gets reduced substantially. Thereby, the amount charged on interest is decreased and the monthly payments are mitigated at the same time. It surely reduces the financial burden in the later years, for the senior citizen. In the end, a big down payment points towards one thing – an early mortgage free life.

· Advantage of a good credit score

A good credit score can be the decision maker that determines whether a loan will be approved or rejected. Many a times during an application for an auto loan, credit score and repayment history can pose to be a challenge. Due to absence of a fixed income, senior citizens may not be the most preferred group of customers. However, a constant inflow of social security income and other retirement perks prove to be credible documentation for acquiring an auto loan. A good credit score can be a strength in not just establishing goodwill but also negotiating a lower interest rate overall.

· Debt-to-income ratio

Once a senior citizen applies for an auto loan, they may discover that an average credit history and growing retirement accounts are not sufficient. More often than not, lenders look for customers with a steady income. This is to maintain equilibrium between the debt owed to the lender and income earned by the senior citizen. Thus, disclosing income records becomes essential in obtaining an auto loan. With multiple incomes that are healthy, getting approval for an auto loan becomes easy.

· Fixed APR

As in any other loan, variable and fixed rates are the parameters on which the interest rate of an auto loan is based. When compared to other loans, one of the major advantages of car financing with a fixed rate APR or Annual Percentage Rate will be that the amount will be constant throughout the term of the loan. This ensures that you will be shielded from any fluctuations in the interest rate. Therefore, the uniform repayment including the fixed APR induces more confidence in opting for an auto loan than other type of loans. Moreover, in your retirement years, it seems best to go for low risk fixed rate loans.

So if you are curbing your desire to buy your dream car or simply holding back, when it actually is a necessity, applying for car financing seems to be the ideal move.

RapidCarLoans.net understands the importance of a car in your life. So, it works hard to provide instant approval for you. Trust the automobile financing company for finding you pre approved auto loans in your city as well as every other state of America.

Auto Loans 101 – 5 Questions To Ask Your Lender

Investing in your dream car is a process that can feel a little overwhelming. From choosing the correct car model to cracking the best deal with your auto lender, the procedure surely requires some prior research. When it comes to auto loans, discovering a suitable auto lender can be a tricky business. It might not be every day that you are exposed to the various options that different auto lenders provide. Therefore, it is imperative to understand how a particular auto loan program impacts your pocket. Sometimes, knowing which questions to ask makes all the difference.

So, which are the key questions to keep in mind while applying for an auto loan?

1) What is the type of interest rate on the loan?

Usually, there are two types of interest rates on an auto loan, namely, fixed rates and variable rates. Under fixed interest rates, the monthly payments of your loan are uniform throughout the term of the loan. Planning of future finances becomes fairly easy with a fixed rate auto loan as you know the exact amount to be paid. With variable interest rates, the interest rates fluctuate indicating a change in the monthly payments. Therefore, it’s always advisable to choose an auto lender providing fixed rate auto loan.

2) How long is term period of the loan?

You must take care of finding out the term of your auto loan. Some auto lenders may render low-interest rates spread over a span of a shorter time frame, for instance 2-3 years. It can hike up your monthly payments as against a term period spread over 5-6 years. Hence, before choosing an auto lender, it’s wise to evaluate all your options and then choose the one that is suitable to your needs.

3) Does the loan require down payment or balloon payment?

Down payment refers to the initial lump sum amount that you pay to the dealer. Alternatively, if you pay a lump sum amount to the lender at the end of the term of the loan, it is called balloon payment. A loan structure composed of either of the two payments helps in reducing the overall loan amount, thereby decreasing the monthly payments. Thus, if you have enough cash to put aside for down payment, it can hugely help in reducing the loan burden of future payments.

4) Is the loan entitled to any penalties?

Due to the excitement of getting a car, we often tend to skip a detailed review of the financial contract before signing it. Many a times, a pre-payment penalty is included in the contract if the loan is repaid early. Each auto lender may have varying penalties; therefore it’s always a good idea to ask your auto lender if there are any extra charges attached to the auto loan.

5) Does the loan include payment protection?

A clause of payment protection in your auto loan program can safeguard you in times of unforeseen circumstances or even extend credit insurance for your auto loan. When comparing loans from different auto lenders, make sure you get the best deal by thoroughly evaluating all the terms and conditions.

Therefore, when you are offered different auto loan options, scrutinize them carefully. Surely the above discussed questions will help you understand your situation better and thereby aid you in choosing a suitable auto lender for your car.

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A Cosigner Guarantees Easy Auto Loan Approval

Do you dream of a big car? Is your credit score low? If so, do not let the lender ruin your chances of getting easy auto loan approval. You should try reaching out to a friend with a good credit score and ask him to cosign your auto loan. Applying with a cosigner will help you qualify for the loan easily.

Who is a Cosigner?

A cosigner is a credit worthy person who agrees to share your loan obligation. If you are a first-time car buyer or a college student, with zero credit score, getting the help of a cosigner makes a lot of sense. It is because he will lend a helping hand to you as well as help you to build a good credit score.

A cosigner increases the chances of getting easy auto loan approval. His credit score adds weight to your auto loan application. Basically, a cosigner guarantees the lender that you will make regular payments. If you are unable to do so, the cosigner has to assume the responsibility of the payments.

What are the Requirements for becoming a Cosigner?

1) Willingness to cosign the auto loan

The cosigner must be willing to make the payments, if you miss them. It is because he is equally responsible for them. Remember that the agreement should be in writing, as the lenders do not accept verbal agreement from the cosigner.

2) Proof of cosigner’s ability to pay

A cosigner must prove that he earns a sufficient income to cover the amount of the auto loan. He must have a stable employment status. If he fails to prove his financial capability, the lender may reject the auto loan application.

3) Cosigner’s employment and residence

Stability in employment and residence of the cosigner is prerequisite for easy auto loan approval. The lenders are in favor of those cosigners who have lived at one address and have worked in their present job for a long period of time.

What are the Advantages of having a Cosigner?

1) Low interest rates

A cosigner not only gives you an opportunity to have a reliable transportation option but also saves you from high rate of interest.

2) Credit Score

A cosigner will allow you to obtain easy auto loan approval and help you build your credit score. In order to build your credit score, you must make regular payments to the lender.

3) Experience matters

A cosigner should be a person with a good credit score. He can also provide you with valuable financial advice. So you will not only receive better interest rates but also a sound financial advice from your cosigner.

What Happens If You Miss The Payments?

· If you miss the payments, do not think that the lender cannot sue the cosigner. As the cosigner is responsible for the auto loan, the lender will not shy away from suing him.

· When someone agrees to be your cosigner, he puts his credit score at risk. And, if you fail to make the payments, it hurts his score as well.

When a cosigner agrees to sign the auto loan application, he accepts the equal responsibility to make regular payments. So don’t risk the cosigner’s credit score by avoiding the payments. Remember that when you make regular payments to the lender, it allows you to drive your dream car and also wins your cosigner’s trust.

If you are a young car buyer with zero credit history, finding a cosigner becomes necessary. But, do not worry if you do not know someone with a good credit score. Rapid Car Loans will help you obtain no cosigner auto loans. Apply now and obtain low rate car financing.

How to Acquire a Higher Loan-To-Value Percentage on Your Auto Loan?

Often while purchasing a new car, obtaining an auto loan that is equal to the value of your car can be tricky. The whole point of applying for a loan is to ease the financial burden in acquiring your new car. Therefore, it is best when the maximum amount of your cost is covered through the loan. Therefore, any auto loan with an impressive loan-to-value percentage is sought after.

So, what is loan-to-value percentage and how does it work?

Technically, a loan-to-value percentage is the amount of the loan financed, relative to the value of the car. It is usually calculated by dividing the loan amount by the current value of the vehicle.

Under an ideal scenario, the loan-to-value percentage is below 100%. However, on a situational basis, lenders can extend loans up to 150% of the value of the car. For instance, assume you want to buy a car worth $50,000 and the loan-to-value percentage on the auto loan is 120%. It indicates that you still have $10,000 to spend on other expenses while you can easily cover the cost of your new car.

A lower loan-to-value percentage means a lower risk for the lender. However, there are a few ways to obtain a loan-to-value percentage which is higher than the value of the car you want to purchase.

What should you keep in mind to obtain a Higher Loan-To-Value Percentage?

· A Clean Credit History

A squeaky clean credit history is by far the most essential factor in not only getting an auto loan, but also getting higher loan-to-value percentage. Without a good credit history, accessing an auto loan can be difficult and it might cost you a tad bit more. Therefore, it is imperative to maintain a good credit record as it is exceedingly important in acquiring a higher loan-to-value percentage.

· Type of Car

Whether you are buying a new car or a used car, your repayment options and loan-to-value percentage can greatly vary. Surely, buying a new car has its own set of benefits as you are backed by a warranty for a few years. Additionally, the loan-to-value percentage on used cars may not be absolute as against new cars. Therefore, an auto loan for a newer car can cover your loan completely and in some cases even extend it to an amount more than the cost of the car that you want to purchase.

· Steady Income

The primary criterion for qualifying for an auto loan includes a steady income. For any lender, a steady income stands as proof that you are capable of repaying the loan amount in the given time period. Usually, lenders ask for payment stubs or bank statements to validate your income. With a steady income of the past few years, obtaining a higher loan-to-value percentage is possible.

Taking the above points into consideration, you get a clearer picture on how a loan-to-value percentage on an auto loan works and the factors you should consider so that you can bargain for a higher amount on your auto loan. Always carry out an extensive research and read the loan agreement meticulously before you decide on choosing an auto loan.

You can avoid down payment and reduce the chances of paying an upfront amount to the dealer by opting for higher loan-to-value percentage on your auto loan. Get in touch with Car Destination and get approved for a higher loan amount instantly. Apply now.

Why Getting a Pre-Approved Auto Loan Is a Smart Decision?

The traditional process of buying a car is a familiar procedure. Keeping a rough idea of the car in mind, you set out to look for the dealerships that offer the models that interest you. Prior to making a selection, you carry out research pertaining to the car and finally come to the stage of filling out the paperwork. This chain of activities is known. However, investing in automobiles is a crucial decision and getting your loan pre-approved is one of the smartest steps that you can undertake to ensure a solid backup of financing.

What is a Pre-Approved Auto Loan?

Typically, a pre-approved auto loan means that you have already found yourself an auto lender who is willing to finance the money for your car that you wish to purchase. The money that is sanctioned for the auto loan is at your disposal for you to buy the car. It is helpful as you can buy a car that is of a lesser amount than the pre-approved loan amount and invest the remainder of the money elsewhere.

Why is it a Smart Decision to get a Pre-approved Auto Loan?

· It helps you to stay on your Budget

Many a times, people get swayed and are pressurized into making an undesirable car purchase that is higher than the cost of the car that they had originally set out to purchase. However, with such auto loan, you can exactly map out the amount of finance that you require and focus on the cost of the car. It is ideal as you can stick to your car buying budget and also keep yourself from succumbing to sales tactics that pressurize you into buying a car that exceeds your budget.

· You are able to identify the Best Interest Rate

Surely, shopping around car dealerships is a convenient method for purchasing a car. However, getting such auto loan can protect you from falling for high interest rates. Also, it will enable you in finding out accurate interest rates at the same time. Therefore, by getting pre-approved, you can be sure that you have secured yourself the best interest rate for your auto loan.

· Check your Credit Report

One of the great aspects of getting a pre-approved auto loan is that a credit report is required by your auto lender before you can start car shopping. Essentially, a credit report can be a great means of checking if you have been behind on any payments. Also, a credit report can help you to fix your credit score before you purchase your new car. It comes of great help as a good credit score ensures a good bargain for a lower interest rate. Hence, by applying for a pre-approved auto loan, you can fix your previous bad credit rating and improve your credit report.

A pre-approved auto loan will not only back you up with sound financing, but also help you get the best deal for your car. Thus, before you set out to purchase your dream car, a pre-approval may be one the smartest options for you out there.

Applying for a pre-approved auto loan is a smart car buying decision. It will enable you to buy your dream car quickly and easily. Trust CarDestination for an affordable loan process. Apply now to get guaranteed car loan approval at the click of a mouse.

Low Rate Auto Loans – Look Beyond the Monthly Payments

Buying a new car is never easy. A lot of information is required while searching for the best auto loan deals. Auto loans can be difficult to understand, but with a little homework, you can grab the best deal with low interest rates.

Do not be a Careless Car Buyer

When you enter the automobile market to buy a new car, you should look for auto lenders that provide quick approval, dedicated customer support and low interest rate. It is important to clarify your doubts before signing the loan contract. If you sign the loan contract without asking enough questions, you will have to accept whatever terms the lender offers to you.

Usually, car buyers look at the monthly payment amount and if it’s low, they sign the loan contract. They do not even take note of the loan terms, interest rates or the actual price of the car. Remember that if you behave like a careless car buyer, you will end up with a high rate on the loan.

Beware of Loan Sharks

A loan shark is always looking for a victim. Usually, loan sharks are unlicensed money lenders. They provide little or no paperwork to car buyers. They don’t even provide clarity to you about the interest rates on the loan.

On-Hand Advice for Finding Low Rate Auto Loans

· Take your time to understand the different types of interest rates.

· It’s important to know the monthly payments towards your car.

· Calculate how much you’re actually paying for the car.

· Explore other auto loan deals.

· Watch out for a loan shark. They may seem friendly at first, but borrowing from them is never a good idea.

· Compare interest rates from other sources such as banks, credit unions and online auto financing companies.

· Always know your credit score because a good credit score will fetch you a better interest rate.

· Don’t sign up for a longer auto loan term. It is because you will end up paying more money towards interest.

· Be aware of the add-ons such as chrome plating wheels, wheel locks, seat-warmers, etc. When you purchase add-ons from the dealer, it gets added in the auto loan amount which means you have to pay more interest in the long run.

When you apply for an auto loan, you must consider several factors carefully and then, make a decision. It is important know the monthly payments as well as the interest rates before signing the loan contract. Remember that if you are careless car buyer, you will not be able to get a low rate auto loan deal.

With CarDestination, you can enjoy low rate auto loans and make car buying affordable. Do not worry if your credit score is not good. You can opt for pre-approved bad credit auto financing and buy the car of your choice today.

Why Should You Opt For Dealership Financing?

If you are scanning through used cars or new cars for your next purchase, there is a good chance that you may choose auto loans as your preferred option of financing. Due to the current state of economy, not many potential car buyers pick cash payment for the purchase of their new car. A majority of the drivers opt for auto loans. There are numerous ways of obtaining finance for the purchase of your new car, some methods being simpler than the rest. Dealership financing is one of the preferred methods that not only helps you in getting a tailor-made auto loan, but also eases the whole process of acquiring a new car.

How is Dealership Financing different?

Typically, dealership financing is when the dealers extend a loan to their customers. Simply put, it is an in-house financing method wherein either; the dealer will himself finance the auto loan or find a loan for you by visiting banks and credit unions, ensuring that you get the best loan. Usually when you shop around for cars, it becomes an added task of finding a lender for your loan. Dealership financing is different with regard to its aspect of keeping the transaction strictly between the buyer and the dealer, thereby making the whole process a lot simpler.

What are the Reasons for choosing Dealership Financing?

· Convenience

One of the best parts of choosing dealership financing is that everything that you need for the purchase of your car is available under one roof. In a usual case scenario, you might have to make rounds between the dealership lot for choosing your car and the third-party lender for obtaining an auto loan. However, with dealership financing, the process is simplified as your dealer becomes your lender. It is convenient in the sense that you can choose the car of your liking while arranging the auto loan, all at the same place.

· Flexibility

Accommodating a tailor-made auto loan that suits your needs is another feature of dealership financing. As it consists of a more realistic approach, dealerships often provide flexibility in auto loans. It means that you can have flexibility in choosing a budget for your car as well as deciding the monthly payments of your auto loan. Although every lender makes sure that you do not miss out on your loan payments, a dealer presents you with additional financing options that are flexible according to your needs.

· No Discrimination on the Basis of Credit Score

Ideally, it is an arrangement between you and the dealer to ensure that you make monthly payments comfortably. Thus, while negotiating for the finance of your car, the dealership will take into consideration a lot more than just your credit score. Therefore, if you have a bad credit history or a poor credit score, you can still stand to get your loan approved. Also, it can prove to be a credit booster as you are availing a loan with a low credit score.

Dealership financing has its own set of benefits. From arranging a deal that can put you in a position to afford your monthly payments, boosting your credit score and getting you the car you desire, a dealership financed auto loan may just be what you need.

CarDestination works with reputed zero down car dealerships to help you buy a car instantly. You can select your favorite car from a large inventory of used cars as well as new cars. Apply now to enjoy easy approval on dealership financing.