What should I expect at my Credit Union?

[Anonymous]

My 'trusty' (I use the term loosely)Volvo is on her last leg. I had been rebuilding for the past year and increased my FICO scores from 504 mid-point ( a lovely divorce process that lasted 4 years!) to around 670-680 in the last 8 months. At any rate, I need to replace the Volvo with a certified used car so I do not pay the ~$700 repair bill each month on top my car note. I am up-side down on my current note about $800 or so. What questions should I ask at the Credit Union without embarrassing myself? I know I can qualify for a loan, but I would like to get a decent rate. My current utility on my 6 active tradelines is 4%, have not been late on anything the last 2 years, and have perfect car payment history for the two that I have financed in the past. I would appreciate it if some of you could chime in.

[Anonymous]

You can likely expect around 8 percent with your scores. With scores of 740 or better the average rate is 5 percent. You may want to get preapproved for the loan at the CU.Tell your CU LO what your eq fico is and ask what rate you qualify for with that score and your income so they don't do a hard pull and lower your score then check with local dealership's to see what rates are available on precertified don't tell them your score but do tell them what your bank is offering and if they can beat that rate AFTER YOU SETTLE ON A CAR AND PRICE & TRADE IN if you are trading. Not sure where you are located but here a lot of the dealers are offering anywhere from 0 - to 4 percent on used certified autos.  Good Luck!

[Anonymous]

Thanks for the advice. I will head over to the CU and ask them what I can get over there. I am in Lexington, KY so loans are about 1% cheaper here compared to the national average according to bankrate.com. Hate to see the Volvo go, about maintaining it is costing me close to the mortgage payments.

[Anonymous]

Understood, I went through the same thing with my Mazda. I had to get something more dependable and now I can say bye bye to paying for premium fuel and use the 87 octane. Good luck and remember, try to offer as much info to the bank to prevent cr pull. A good LO can tell you without doing the credit pull.

[Anonymous]

You were spot on! I was offered 8.25% without the credit pull. As much as I dislike car shopping this is something I have to take care off without having to pay for another Volvo repair. I'll see what I can get at the dealer. Yeah, that premium fuel is the killer although the Volvo gets respectable mileage.

[Anonymous]

With scores between 670 and 680 you can do muuch better with a CU. Much better. Most CU's pull EQ.

[Anonymous]

If you are a member they should offer you a .25 rate decrease for doing auto withdrawl. My CU also has a rewards program so I can cash points in on a lower rate in conjunction with the AW. Did they tell you what score for a better rate? Mine says 740 for best rate. Now you can shop a few dealerships and compare rates. Good luck with your car hunt!

[Anonymous]

The 8.25 was CU rate he was quoted.

[Anonymous]

I have done a lot of business with my CU over the years, they have been good to me. Now you can have fun shopping, when talking to a dealership about rates tell them your CU approved you for financing at 6.50 percent and you may get them to match that rate. I didn't finance the Honda through my CU this time. I got a better rate at the dealer using Honda Financial. Good luck with the car shopping, let us know what you get!

[Anonymous]

Yes, the 8.25% was with the automatic withdrawal discount. My CU exclusively pulls TU, but all my scores are within that 670-680 range, with their next tier being in the 690 range. I do not foresee getting into the next tier unless one of my goodwill letters magically work and a charge off falls. 8.25% is quite manageable for me at this point, however, the dealers all said they could get me their prime rate. One things gets my goat is the so called 'dealer fee'. Since there is no cap on it in KY, they range from $99 to $799. I am leaning towards the CUs recommendation that is to go with the Enterprise car sales where this made up fee is only $149. I appreciate everybody's comments.