If you’re interested in auto loans, credit unions can be a fantastic resource. They are accessible and offer competitive rates. An auto loan from a credit union can be one of the best among the ones offered by several lending institutions. Credit unions are more about offering different kinds of facilities in financial services to their members. They care less about making money.
Membership of a credit union is just like being a stakeholder in one of the corporations. By becoming a member of a credit union, you don’t just buy a share in the institution. You also get a valuable voice in the procedures and daily affairs of the credit union’s branch. Another exciting thing about your membership in such an institution is that you get to vote on certain matters.
These are mostly the measures directly affecting the community, which works in conjunction with the institution. One thing to be kept in mind is that a credit union is a not-for-profit provider of financial services. The rates that are associated with its loans and accounts differ greatly from the traditional banking institutions.
Generally, credit unions are always the first preference for many individuals looking for auto loans. These institutions have lower monthly instalments and lesser rates of interest on loans. Therefore, there it can be very beneficial. Here are some of the other benefits:
1. They are more ‘understanding’
Credit unions take your situation into account. There’s always a possibility of hitting a rough patch in your life for some reason. In such situations, credit unions will make the necessary adjustments with regard to loan repayment. They will ensure the repayments are possible and affordable for you. And adjust accordingly. In the traditional banks, you can be more penalised as they are generally less understanding of personal situations.
2. Profitable repayment features
Most of the credit unions are now keeping up with the advancements in technology. You can make mobile and online payments in recent times for your credit union auto loans. A lot of credit unions are also giving their members the chance to finish paying down their loans early.
They won’t charge you a penalty or a fee for early repayment. The traditional banks would try to extract the maximum from you in the form of penalties and interest.
3. Discounted insurance
You might be able to sign up for discounted auto insurance with a credit union auto loan. This greatly depends on the credit union you are with. And with this feature, your wallet is protected while making sure that the loan is repaid. Some credit unions also have certain programs offering mechanical service insurance. This ensures maximum coverage for the amount spent on repairs done on the vehicle.
4. A non-profit environment
This is one of the most delightful features of a credit union and the auto loan you hold in it. In many other financial institutions, you’re charged for all their services. Therefore, this includes the ones that are generally seen as basic components of holding an account in any financial institution. It is obvious that there are ulterior motives behind everything that they do.