Credit Union Car Loan Rates
Low credit union car loan rates can help you secure a loan with payback terms you can afford. Unlike other loan lenders, credit unions have the lowest rates of all. Instead of the usual 4-7% interest rate, credit union interest rates hover around 2.75%. Thanks to credit union car loan rates, average people can refinance their current car loan with ease, while at the same time enjoying a low-interest rate that doesn’t punish them for refinancing in the first place.
One of the most important things to remember about car loan refinancing is to pay back the loan on time, according to terms. It only takes a single loan default to hurt your credit score. And if you default on multiple loans, you can be barred from acquiring additional loans in the future.
Refinancing Makes Sense! Lower Your Monthly Payments!
The whole idea behind refinancing is to lower your interest rate, and thusly, your monthly payment amount becomes lower too. You may be able to do this with your current lender, but if not, there are other lenders out there who can help.
And refinancing makes good financial sense, especially in limited budget scenarios where the extra cash comes in handy. However, borrowers should be aware that car loan refinancing can be difficult to accomplish because of the following 3 factors :
1. You Can’t Borrow Enough To Pay Off Your Original Loan
Most people with car loans owe more on the loan than the car or truck is worth. This is due primarily to age/wear and tear, so borrowers should be aware that in order to make refinancing work out in this scenario, they would have to have a few thousand dollars lying around to cover the remaining amount of the first loan. But if a borrower has this money handy, refinancing is definitely a beneficial action to take.
2. Your Car Or Truck Is Too Old / Not Worth Enough
Refinancing makes sense, but with older vehicles, you’ll find that the interest rate increases along with the age of the vehicle itself. If your vehicle is new (1-2 years old), you can acquire refinancing between 4-5% easily. But as vehicles age, the interest rate advantages associated with refinancing become less and less.
3. Your Credit Score Is Too Low To Qualify
When it comes to credit union car loan rates, your credit score means everything. On average, buyers with really good credit pay only about 4% in interest rates (according to 2010 statistics). Whereas people with bad credit pay an average of 13.1%. Make sure your credit score is good enough to legitimize your refinancing effort, or you may find the interest rate defeats the refinancing effort entirely.
Tips You Can Use To Keep Your Borrowing Power Strong And Healthy
1. Don’t Extend The Length Of Your Current Loan – Many people make the mistake of extending their original loan terms beyond the original payback period. While extending your loan time span while refinancing can have its advantages, statistics show it usually creates more of a problem for borrowers than a benefit. The more time borrowers spend with an active loan in place, the more chance they could run into sudden financial problems.
2. Don’t Agree To Outlandish Fees Or Up-Front Charges – A reputable lender will only charge you the necessary fees to cover the cost of the application and paperwork process. Some lenders even go as far as paying you for the chance to refinance your vehicle. If the terms of a refinancing contract are “out of this world” expensive, stay away from it.
3. Do Everything You Can To Improve Your Credit Score – The higher your credit score, the lower your interest rate will be when taking out a loan. And you’ll find that a good credit score allows you to secure loans at rates FAR below the average rate.
Credit Union Refinancing Loans Come With Tons Of Great Features
Compare and save! Refinancing with credit union car loan rates comes with tons of great features! Rates starting as low as 2.75%, no payments for 90 days, no application fees, easy payment options, flexible loan terms of up to 75 months, 100% financing for qualified buyers, no pre-payment penalties, and much more!
And there’s never been a better time to refinance car loan! Borrowers who act immediately to refinance car loan rates do the very best. You can get a lower interest rate, lower monthly payment, and pay back your original loan with ease! From there, you can use the money you save to live well across the entire length of your new loan repayment. Statistics show that people who live well/treat themselves well during their loan repayments pay back their loans more successfully.
Credit Union Car Loan Rates Give You A Second Chance!
It’s no secret that taking advantage of super-low credit union car loan rates gives you the best chance at making your refinancing work out the best. The world we live in DOES make it difficult to refinance a car loan in order to save money, but with a good credit score, a newer vehicle, and access to super low credit union rates, you can really make it happen!