Unfortunately, your FICO credit score is not allowing you to qualify for the best auto loan rates out there. Your score is decent, but to get the lowest interest rates possible, outstanding seems to be the new industry standard. A credit union may be another possible place to get a lower rate auto loan.
Credit unions are a type of cooperative financial institution that is owned, operated and controlled by its members. Their purpose is to promote thrift and provide credit at reasonable rates. Credit unions differ from banks and other financial institutions, as the members of the union are also the owners of the union.
Many times credit unions have car loans at below market rates, as they are non-profit organizations that stress service over profits. Although internally they may be structured like banks, the members are the ones who make decisions on how they conduct business, rates and the likes.
By joining a credit union you may be able to take advantage of the lower interest rates they have for auto loans. But the question still remains, how do you become a member? Credit unions only allow people to join who have a common bond such as geographic community, workplace or religion. The best way to start your search is by entering the terminology credit union along with your local area into your favorite search engine. Also check with your company's HR manager to see if it has that type of benefit in place.
Credit unions do not offer all the products that available through banks. For example, although you may be able to secure an auto loan through a credit union, you may not be able to invest your extra income there. So next time you need to investigate a low-rate car loan, make sure to see if a credit union offer can be part of your comparative shopping.
