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  • Dec 10, 2021

5 Reasons To Apply for an Auto Loan From Your Credit Union

Don't struggle with paying all at once from your own pocket when buying a car. Here are five reasons to apply for an auto loan from your credit union.

Whether you plan to buy a car for yourself, a used car for your teenager, or for restoration to sell back, purchasing a vehicle can become quite costly. There are situations where you need to finance the car if you don't have enough money upfront.

Thankfully, you can go through a credit union to make a proper purchase. They offer low-interest rates, fewer minimum loan requirements, and establish good relationships with their members. Here are five reasons to apply for an auto loan from your credit union.

Low-Interest Rates

Credit unions have become notorious for having lower interest rates for their loans. They offer higher saving rates, working with their members rather than for-profit like other lenders. From there, they offer more competitive rates in comparison to banks.

Better Approval Odds

One of the best reasons to apply for an auto loan from your credit union is significantly higher approval rates. If you have less-than-perfect credit, credit unions are more willing to work with you.

They offer a holistic approach to loan application reviews and weigh outside factors besides your credit score, finding the best loans that meet your financial needs.

Easy Membership and Benefits

It was previously thought that credit unions were only open to workers in the industrial and government fields. That thought has changed, and credit unions welcome just about anyone into their membership.

Credit union members have ownership versus shareholders, and profit comes right back. As such, they offer lower costs for things such as mortgages, home equity loans, unsecured personal loans, and credit cards.

Lower Fees

Besides your auto loan, credit unions have lower interest rates. This is due to the non-profit aspect and having ownership from the members. Any profit gets returned to the member. A member receives reduced fees and higher interest rates on deposit products, as well.

Lower Loan Minimums

Compared to banks, credit unions may lower minimum-loan amounts. A low loan minimum would be helpful during your car purchase if you don't require a significant portion. Credit unions also offer more flexibility with loan amounts.

All in all, applying for a loan has become easier than ever. If you’re looking for a car loan in Massachusetts, look no further than GFA Federal Credit Union. Whether you plan to purchase a car, boat, or RV, we have loans to provide for your vehicle!

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