how easy is it to get a loan from a credit union?

[Nocturnal]

does anyone know? its for a car. roughly 7-8 grand?

does anyone know how much credit do you NEED?

i dont have the best credit nor do i have the junkest credit.

so im wondering if i would be able to. and if i cant, would a co signer help me in the chances of getting one?

and how much are the usual interest rates?

 

[kranky]

The higher the down payment, the better your chances. If your credit is shaky they might ask you to make a larger down payment if you are trying to make a small one. Your credit rating will probably affect the interest rate they offer.

If you've been a CU member for a while, they'll probably bend over backwards to get you the loan. After all, they are in business to lend money, not turn people down.

Here are the current rates for a CU I'm in (your CU will be different), you can see that they show a range of interest rates. If you think the rate is too high, you can always ask if a higher down payment would affect the rate.

 

[Murpheeee]

Credit Unions are generally easier to get loans from than regular banks, they also usually have better interest rates.

But like kranky said, go with a nice fat downpayment to show you are serious.

A joint-applicant is another option....then they'll consider both credit historys

 

[bmacd]

i was 18 when i got my first loan through the credit union. My dad co-signed for me and i got the loan for $13k. To my understanding, i can't get established credit until i'm 21 anyways, so...

-=bmacd=-

 

[Lvis]

I got my first loan though a credit union, 4K, to buy my brand new (82) toyota corolla. I had no credit at all, at the time. They looked at the fact that I'd been a customer for over a year, had saved a regular amount in my savings account, had a nice down payment, etc.

They do seem to work with you more than a regular bank will. Can't hurt to ask.

 

[T2T III]

When I was recently looking into financing for a new vehicle, I checked a couple of resources for the financing which was for a 60-month term. The credit union that my wife had access to wanted 5.74% for the interest rate. PeopleFirst.com had the same loan for 5.49%. However, when making the purchase, the dealer offered us 4.99% financing because we have an outstanding credit rating. If I were you, I'd check a couple of sources out. PeopleFirst.com will respond back to you within 15 minutes after you have submitted the on-line application and let you know what they can offer you in regards to an interest rate and amount of money for a loan. Plus, you might also find that their rate is a little better than your credit union which was the case for me.

 

[kranky]

wje, I think your outstanding credit rating was a big factor in the way it worked out for you. The OP isn't quite so lucky. But in any event, it never hurts to check all available options.

 

[Lvis]

I recently got a loan with people first, got the best rate they offered, too. My credit is ok, but not perfect. (divorce dinged it a bit) They have been great to deal with, and the blank check they send you makes it easier to dicker with the car dealers. I think they are affilitated with, or perhaps owned by mbna. If you have an mbna card, this might help.

 

[EXman]

It is a lot easier to get it from the credit union than at a bank that is for sure.

CU's are supposed to work for their customers. not like banks...

 

[dman]

The worse your credit the better your luck would be at a dealership. They have a bunch of banks they can go to for financing, but, they'll screw you with a crazy high interest rate and/or extended term (5yr on a used car). So, it is in your best interest (no pun intended) to go to a bank/credit union and apply before shopping.

Keep in mind that they will all only finance the loan value of the vehicle, so, you have to come up with the difference between that and the sell price, and then anything above that will be what helps you. So, if you can find a good deal on a used car (selling close to or below the loan value) you'll be in much better shape.


----- A long story about another option:

A family member of mine had an ordeal recently, she has OK credit. She decided she needed a new car and bought a 4yr old civic (that was in great shape w/ low miles, but still 4yrs old) from a dealer who was going to have her finance it for 4-5 yrs so she could make the monthly payments. Turns out they let her drive it away w/o securing the financing so on Monday she got a call saying she needed to come back down w/ some significant extra cash to get her financing. She freaked because she didn't have the extra cash.

I was able to get involved at that point. I read the contract and basically is said if she didn't get the financing she had to return the car and they had to refund her money / down payment. (Fortunately she did not do a trade in -- or we would have had a bunch of headaches trying to get that back). Bottom line: She did not have to pay anything more, unless she wanted to. I told her she could get a new civic for the same payment but it'd be 6yr loan (which would still be a good deal vs the 4yr old car with a 4-5 yr loan). At the end the new car would be 6yrs old v 8-9yrs the other way.

So we returned the used civic and walked next door to the new car dept. We negotiated for a 2002 EX and did the paperwork again. A couple days later my sister called saying that she didn't get approved for a 6yr loan but they had secured her on a 5yr loan (that we hadn't agreed to). Turns out the 6yr car loans are only valid on new cars >$25K -- at least in this case. Well, she could return the car and get the money back OR make higher payments. We decided we'd shop elsewhere at that point and return the car. Of course the dealer was amazingly now able to sell the car at cost which suddenly made it affordable again.

 

[Nocturnal]

thanks guys, but im not totally sure if im gonna be buying a used car from a dealership. it might be from an outside party.

thanks for your advice though i appreciate every single one of it.

what would i do without my anandtech family?

thanks!!!

 

[RossMAN]

Credit Unions are definitely better/easier to get loans from than banks. Although they use the same lending criteria, Credit Unions usually have a little more leeway (sp) and take into consideration special circumstances. So definitely apply at your local CU. Interest rates differ based on the financed amount, term, and your credit score. Your CU might have their used car interest rates on their website, it's worth checking out, mine has savings/checking/loan rates all listed on their website. For instance my CU is offering used car rates starting at 5.4% with a term of up to 4 years. So maybe shoot for a 4 year (48 months) term.

Since your credit isn't perfect I would definitely recommend first applying with a co-signer, it should definitely improve your chances because they're going to take into account THEIR good credit/income and your not-so-good credit/income.

The only way to find out if you'll be approved or not is to first find a car (pref in good condition and for a good deal) and apply for a loan with a co-signer.

Best of luck.