Don’t let the recent credit crunch stop
you from purchasing your next vehicle. A
great option right now is to get your auto financing through a credit union.
Credit unions are often open to making auto
loans to their members and in most cases will handle any credit scenario.
Not only that, they often times have better rates than the banks.
Yet many consumers are leery of joining
a credit union, unsure of what being a member entails, and unwilling to pay steep
membership fees.To clear up any misconceptions,
let’s take a look at the history and structure of credit unions.
Credit unions are non-profit financial
institutions that were initially formed in the early part of the 20th
century in support of specific companies or local/state municipalities like: United
Airlines, State of Colorado, Qwest (Mountain Bell), and many more.
In the beginning you had to work at the company, or in some cases be related
to someone working at the company, to join.
With the shifting of the general economy away from “employer for life” mentality
and the sale, acquisition and merger of large corporations, credit unions have had
to make the shift as well.
As a result, credit unions have had
to come up with a way to stay alive and competitive.
First order of business: find more members. To do this they have created
easy ways for people to join.Some credit
unions have opened membership to certain surrounding communities, while others have
welcomed members who live or work in certain counties.
In many cases membership fees to open an account are only a few dollars.
These changes have been extremely positive for both the general public and the credit
unions.Now more and more of the general
public can enjoy the benefits of the credit unions.
The benefits of credit unions are numerous.
First of all they are member owned, not publicly
traded, so there is no influence from Wall Street.
They are fiercely protective of their members, so you won’t get bombarded with “affiliate”
advertising.They offer incredible rates
from loans to CD’s.
And in this economic market here is
the best secret about credit unions: they don’t spend millions of dollars on gimmicks
to lure in new customers; in fact they spend very little on marketing, considering
that they are competing in the financial sector.
Because of this, they are solid, dependable, and they have liquid assets that they
are looking to loan out, in the way of low interest car loans.
Currently most credit unions are offering at, or below market, interest rates
on auto loans, and they are still qualifying members with all types of credit scenarios.
/ There has never been a better time to join
a credit union
If you’re ready to learn more about
the credit unions in your area, here are some steps to take:
-
Contact your company’s HR department
and see if your company is affiliated with a credit union.
-
Find the credit union league website
for your state and get a list of the participating credit unions.
-
Go to each credit unions’ website to
identify membership eligibility and shop rates.
Credit unions are a great option if
you are in the market for an automotive loan.
It is worth the effort to research unions in your area and compare interest rates
and loan details.
The result may be a highly competitive car loan and a long-term financial
partner.