• Improve Your Credit Score: Before you apply for a secured loan it is essential that you have an accurate knowledge of your credit rating. If it shows any loan defaults or late payments, you are likely to be quoted a higher interest rate. Hence, you must contact a reliable financial institution and ask for ways in which your credit score can be improved.

• Offer Valuable Collateral: Another important factor that can help you get a better rate is to offer a valuable collateral against the loan. The collateral's market value should be at least equal to or more than the amount of money that you intend to borrow. This will make the lender comfortable and sure about your trustworthiness and solemnity in repaying the loan.

• Analyze Your Needs: You should carefully analyze your financial needs before applying for a secured loan. Make sure that you borrow only the amount of money that you actually require. A higher loan amount is most likely to correspond to a higher interest rate. You should also try to opt for a smaller duration to repay the loan to avoid more interest payments in the end.

• Compare Different Policies: Lastly, it is equally important that you compare the rates of policies and the insurance premiums. A credit union is likely to offer much lower interest rates than banks and other financial institutions. However, you must do thorough research about the policies and terms offered by them.

Getting a new car financed has become the norm of the day as many people find it a convenient way of getting a car of their dreams regardless of whether they have the money required for the purchase. However, most of the people take the plunge into auto financing without understanding the intricacies related to it or having any basic knowledge of how such loans operate. Loans can be either short-term ones or long-term ones depending on their period of repayment. Loans for which the repayment period is stretched over a long period are the long-term ones whereas short-term loans are those that are paid off quickly usually within 24 to 36 months.

Long-term loans last for 48 months or longer and can stretch up to 72 months in some cases. Such loans might seem more lucrative than the short-term ones but prove to be more expensive in the long run. The interest rates for such loans are lower than those for short-term loans but considering the long periods over which the monthly installments are spread out, they end up being much more expensive. Short–term loans on the other hand have slightly higher rates of interest which could be a bit discouraging for some but take less time to get repaid and save on costs too.

If you are keen on getting a short-term loan at very competitive rates of interest, credit unions could be a better option than other financial institutions. Credit unions are financial institutions formed by people with some common bond who pool in their assets for providing loans to members. Credit unions are usually smaller organizations than other financial institutions, which means that you are sure to enjoy faster services and personalized attention. There is always some scope for negotiating on the rates of interest in credit unions, which gives more flexibility to a borrower.

So, if you are looking for a loan repayment plan in which you get to repay the amount borrowed within the warranty period to avoid paying for repairs out of your pocket, getting a short-term loan from a credit union could be the smartest option. You can also get an extended warranty on long-term loans but this will only lead to an increase in your monthly payments and defeat the purpose for which you got such a loan. Therefore, before getting an auto loan, always consider the repayment period and the effect it will have on your overall expenses.

If you want to procure 72 month auto loans or short term loans in Central Texas, visit us at Greater Central Texas Federal Credit Union only. We are located at 3305 E Elms Road, Killeen, TX 76542.