• Non-Profit Organizations: Youngsters are more likely to resonate with credit unions as they are formed to help people as opposed to the sole purpose of making profit. The main reason for which credit unions earn revenue is to stay viable. Every member is treated fairly regardless of how much money he/she has. Credit unions work to use their profits for the good of members in the form of low interest rates, less fees and more perks.
• A Credit Union Is A Local Institution: Giving back to community is something many responsible youngsters are keen on doing. A credit union is the perfect place to start at a local level. The money saved by members of a local community is utilized for supporting the very same community by helping them materialize their goals and desires.
• Financial Education: Youngsters looking for a head start in financial education are better off at credit unions. One of the cooperative principles of credit unions is to educate its members and help them with managing their personal finances.
• Better Customer Service: Credit unions are committed towards customer service and value. Members are offered competitive interest rates and great service. The representatives they are staffed with are helpful and friendly.
• Easy Eligibility: The criteria for eligibility as member of a credit union is that the prospective member should be living in the area within which the union is situated.
• Trustworthy: Most youngsters prefer being members of a credit union for the simple reason that they feel they can trust the union. The reason for this amount of trust is that credit unions are known to work in the best interest of their members and are keen on assisting them in making the best financial decisions.

Getting a secured auto loan can be a confusing and overwhelming process for many, and there are several things that can go wrong in such a loan. You need to be very sure about the terms and conditions of such a loan before you sign your auto loan contract. Feel free to ask questions, carry out research, and explore all your options before you seal the deal. Here’s a look at some of the most common pitfalls while applying for a secured auto loan, and how to avoid them:

• Sitting across the desk from your financier with your fingers crossed as you wait to hear your credit score is not a good idea. You need to be very sure about where you stand, and make an effort to improve your credit rating, before walking in to get an auto loan. Contact a credit bureau for information on how you can rectify errors in your credit report. Even a small change in your credit can have a big impact on your loan and the interest rate you get.
• One of the easiest ways to ruin your auto loan is to end up spending more than you had set out to. If you are sure that you want a cheap auto loan, it is important to know exactly how much you can afford to spend towards monthly car payments (no more than 20% of your net monthly income) and stick to this figure.
• Take time out to carry out some basic research on the going interest rates on secured auto loans in the market, before visiting the dealership. This way, you will know whether the rate being offered to you is a fair one.
• Do not let the loan officer drift to insignificant aspects of the deal, by intertwining them with what really matters. Your primary focus at all points should be the APR being offered to you, as this is what shall actually matter in determining how much you end up paying in the long run.
• Signing the papers under pressure in a rush to finalize the deal is another common pitfall that most buyers make. If you feel that you are losing control and succumbing to the seller’s pressure, a better idea would be to walk out and return, if you must, once you have cooled down.

Keeping your head cool and doing your homework before entering the loan agency office can help you get that lowest used car loan that you have been looking for, leaving you with a loan that you’ll be happy about for as long as you drive the car.