If you need to purchase a vehicle, credit union auto loans could be the best option for you. If you’ve gone through bankruptcy or have a bad credit score then you can still qualify for this kind of auto loan. Having bad credit should not deter you from looking for a reputable credit union to refinance your auto loan. You will find that there are many credit unions available, all offering different deals.
You need to shop around and find the most suitable one for you. Compare and contrast between each credit union and look at what kind of rates they are offering as well as their terms and conditions.
The next step to take is to obtain a copy of your credit report, your driver’s license permanent address, employment details, and your current insurance card, as they are all requirements when you visit your local credit union. You could opt to go to an associated credit union or an alliant credit union. The credit union rates will differ from bank rates and so you need to research well.
Step ThreeWhen you get there you will need to ask for a loan officer who will take you through the process of acquiring your auto loan. You should already know the amount you require to purchase the vehicle of your choice, as this will determine how much financing you need. Your bad credit will not limit how much financing you get, although you need to negotiate well in order to get a low interest rate on your auto loan.
Step Four You need to be realistic by staying within your budget. You should also be aware that with bad credit some car dealers will remain with the vehicle’s papers or your auto loan financing details. If you’re purchasing the vehicle from a dealer, then your loan officer will need a buyer’s order from the dealer. Many credit unions offer the option of allowing you sign all documents on site so that the process is speeded up.
Step Five You might find that the credit union will require that you have a down payment or deposit. You want to look for a credit union that specializes in bad credit auto loans so that you get the best deal possible. They will also tend to be more flexible and some may not require you to have a deposit or an amount as down payment.
Getting financing to purchase a vehicle even with bad credit will enable you to improve your score especially when you make your payments on time and do not default on any payments. Having a vehicle may be essential for you, so getting financing to purchase one could be your best solution even with bad credit.