CREDIT UNION

[Anonymous]

I took your advice and approached a new, local credit union that I'd heard such good things about, and for good reason.  I was pleased with how they welcomed my business.  DH TU score was 590 and we are "credit poor" which is why the score is lower and they approved him for an auto loan.  They also were very thorough and understanding with the review of his CR.  I am definitely pleased.

As a side note tho, DH is finding that auto market is very tight for used cars as dealers have too much money in them and aren't very easy to deal with.  At least we know we can do something if need be.

Thanks for all your input!

[Anonymous]

Congrats! I am also looking at our local credit unioins. What was the amount financed and rate?

[Anonymous]

Haven't found a vehicle yet, but was told due to credit score would be looking at 11% - and depending on year of auto, length of loan, etc., may differ.  That was less than what my bank had quoted and they were offering about 13% for scores of 629 or less.  My band even said to look for a credit union!

The CU uses TU for score and the bank uses Experian.  Experian score was a lot higher, but yet the bank didn't want to loan us.  Recently had officer go to prison for stealing, so they're being extra careful with the feds in their faces.

We may not even trade now, but at least I know I can with this economy.  Everyone's scenario is special and has different measurement.  We're credit poor with no credit cards to help, but have just got one and it will take a couple of months to make an impact on score.  Cap 1 has a credit building program and we've gone from $300 starter limit to now at $750 and in 3 more months of pay on time, will have $1,000 limit.  That will definitely help!!!

[Anonymous]

I just joined a CU last week when I bought a car. 

The overall process was pleasant and stress free, and the interest rate that I got was 3.5% lower than the best rate I would have ever expected from a bank! I have decided to open a credit card with them and move all of my banking over. The credit card they just approved me for is 2% lower and double the limit of any of my current cards.

See ya later Chase, Target, WaMu and HSBC!   

Credit Unions are the way to go  Especially now with the traditional banks getting shadier by the minute.

Can you open a checking account with them?

If you can move your banking over you may be able to save yourself more on the interest. My new credit union offers an additional .25% off when you open a checking account, another .25% percent off if you direct deposit your pay and a additional .25% off if you have the payment automatically debited monthly. Saving .75% on my car loan just by making my life easier is definitely a good deal!

[Anonymous]

That is great!! 11% is not bad. At least you know where you stand. The good news is now you can take your time and pick the car out that you want- without having to worry about the dealer financing! Congrats again. I am going to join our local credit union- I will keep everyone posted.

[jay_s]

Do you know if the credit unions use the Auto Enhanced FiCo scores?

[kbella]

Congrats!  I wonder if my experience with a CU was rare.  I joined a CU through my husband's work for the specific purpose of knowing we'd need to get a car.  Until the CU quoted us 19.75% with 20% down.  We ended up getting 11.99 at the dealer.

[Anonymous]

I just refi'd a motorcycle loan that HSBC had at 21.8%(!!!) with a local credit union at 7.9% that my bank, BofA wouldn't touch! Going to save me THOUSANDS! Horray for credit unions!

[Anonymous]

I haven't applied yet, but the loan officer at my credit union told me I could only get the best rate (which they said was 6.5%) if my experian scores were above 750. Honda told me if I had over 720 I would get their best rates, which are much better than 6.5%... we'll see what actually happens in a couple weeks...