thinking of applying at US Bank or CU

Anonymous · ‎03-30-2011

Hi all,

I've been researching used auto loan rates and it seems my local CU has competitive rates but I don't have membership at the moment. US Bank on the other hand has good rates but I have no relationship with them.

Here's a bit of my history:

-8 year old credit profile

-Highest score (im not if its FAKO but was obtained through privacy matters) is EQ 759

-Monthly gross income of $4500

-Rent is $1200

-Credit card payment: $100/month

-I have very low utilization across three cards with $5000 in credit (probably in the neighborhood of 20-30%)

-No student loan, no mortgage, no other installment loans

- I have one paid off vehicle, previously financed with TFS for $22k

I am now looking for a used car loan in the range of $34-36k, and I want a 72 month loan just to keep the payment lower but i do intend to pay more than the minimum.

So, I've already calculated and it does seem I should be easily approved but the question is which bank. The CU i am trying to join is SchoolFirst (formerly OCTFCU). Does anyone have experience with these guys?

Creditaddict · ‎03-31-2011

I would apply to both and take the better rate... I really suggest 60 months though.

cdtotten · ‎03-31-2011

I agree, I would apply to both, but I would expect the CU would provide a better rate. They may expect some money down though on a purchase that size. Don't do 72 months... always a bad idea. 60 months should be the longest any car loan ever is, 48 is better. You will be so upside down in the car that if something does happen, you would be in trouble.

Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU

Take the FICO Fitness Challenge

Creditaddict · ‎03-31-2011

@cdtotten wrote:
I agree, I would apply to both, but I would expect the CU would provide a better rate. They may expect some money down though on a purchase that size. Don't do 72 months... always a bad idea. 60 months should be the longest any car loan ever is, 48 is better. You will be so upside down in the car that if something does happen, you would be in trouble.

+1 but I believe usbank is offering a 2.9 currently on 48 or 60 months (forget exactly) on 3 years old or newer.

So is navy fed if you can get in with them.

Anonymous · ‎03-31-2011

Thanks for the reply everyone. With regard to CU, do you need an established relationship before applying for loan? or can you just sign up and apply immediately?