How to Get An Auto Loan From a Credit Union

Quick Answer: To get an auto loan from a credit union, start by reviewing your budget to determine what you can afford. Then, gather necessary documents such as proof of income, identity and insurance. Apply for pre-approval to understand the loan amount and interest rates you qualify for, before car shopping.

Buying a car is a significant investment, and getting an auto loan through a credit union can be a smart way to finance it. Credit unions typically offer lower interest rates and more personalized service than traditional banks. If you’re looking to get an auto loan, CCCU shares a step-by-step guide to help you secure an auto loan from a credit union.

Step 1: Review Your Budget

Before you start shopping for a car or a loan, take a close look at your finances. Determine how much you can afford for a down payment and monthly payments. A good rule of thumb is to keep your car expenses to less than 20% of your monthly income.

CCCU recommends using an Auto Loan Affordability Calculator to help you find the sweet spot between what you want and what you can afford.

Step 2: Gather Necessary Documents

Prepare all the documents you’ll need for the loan application to help create a smooth and timely experience. These typically include proof of identity, income, and current car insurance information. Being prepared can speed up the approval process, so speak with the lender in advance to see what documents they need.

Step 3: Check Your Credit Score

Your credit score will significantly impact the interest rate you qualify for. Obtain a copy of your credit report and check for any errors that could affect your score. If you’re a Bonus Checking user, you can obtain a copy of your credit report for free. The higher your score, the better your loan terms are likely to be because you’ll qualify for better rates.

Step 4: Apply for Pre-Approval

Contact your credit union to apply for a pre-approval. The pre-approval gives you a clear idea of how much you can borrow and at what interest rate. It also shows car dealers that you’re a serious buyer, which can be an advantage during negotiations.

Step 5: Choose Your Car

With pre-approval in hand, you can start shopping for a car within your budget. Check with your local credit union to see if they have their own auto brokers as they may offer you extra savings for your loan rates or terms.

Did you know that CCCU has its own car dealership? With Members Auto, when you purchase a vehicle using their brokers, you get an extra rate discount on a loan with CCCU.

Step 6: Finalize the Loan

Once you’ve selected a car, finalize the loan with the credit union. Review the terms carefully, including the interest rate, monthly payment, and loan duration. Make sure everything fits within your budget before signing the agreement.

Conclusion

Choosing a credit union for your auto loan provides benefits like lower rates and a more personalized approach to financing. At CCCU our financial service representatives are ready to get you on the road with a rate and term that fits your lifestyle. Visit www.CCCULV.org or call us at 702-228-2228 to get prequalified!