GCTFCU Blog | Checklist For Getting An Auto Loan From A Credit Union

How To Apply For A Secured Loan

With lower interest rates, secured loans are one of the favorite funding source for borrowers. The reason for lower interest rates in case of secured loans is the fact that lenders asks for a collateral as security against the amount financed. Examples of collateral used for secured loans are funds in the savings account, certificate of deposits, valuable property such as house or a commercial property, etc. It is important to know that the value of collateral should be equal to or greater than the loan value.

Following are some points worth considering when applying for a secured loan:

Your Financial Situation: Before applying for a secured loan, the first thing to do is to assess your financial situation. Figure out how much loan you need, suitable loan term, feasible EMI, etc.
Credit History: Once you have made up your mind to get the loan, check your credit history and see how it will affect your loan application. A good credit score increases your credibility.
Loan-to-Value: Assess the loan-to-value in order to know your borrowing capacity and the interest rate that will suit your financial circumstances. A lower loan-to-value translates into a better interest rate.
The Interest Rate: Inquire about the interest rates offered when looking for a secured loan. Ask the loan officers about suitable options and ways to secure a better rate.
The Term Of The Loan: The period over which you have to repay the loan also impacts the cost of the loan. A shorter period of repayment may lead to higher interest rate and vice versa.
Fees And Monthly Payment: When obtaining a secured loan, keep in mind that it involves various payments such as application fee, loan origination fee and cost of appraisal.
The Application Process: Credit Unions offer borrowers the choice of applying online. During the process, applicant is required to provide details such as the name, address, date of birth, income and employment status, etc.

Visit Greater Central Texas Federal Credit Union to apply for secured loans. The credit union offers secured loans on low interest rates to its members. For more information on how to apply for secured loans, visit: 3305 E. Elms Rd., Killeen, TX – 76542. You can also contact: (254) 690 – 2274.

Checklist For Getting An Auto Loan From A Credit Union

Are you looking for an affordable and convenient source of credit for a vehicle? If yes, you should consider visiting a nearby reputed credit union for a better and detailed insight into auto loan financing. Credit unions are convenient and time saving financial institutions catering to all sorts of financial requirements of their members.

Listed below is a checklist for anyone interested in an auto loan from a credit union:

Determine Your Budget: Start with making a budget so as to choose the right auto loan in terms of pricing (monthly payments).
Get Pre-Approved: Even though your credit union will conduct a credit score check on its own, it is advisable to get the loan pre-approved from the credit union. This helps in determining the APR, amount that you can borrow and the duration of the loan. Pre-approval improves negotiation and increases the chances of getting the most appropriate deal for your budget.
Identity Proof: This includes a driver's license, a government-issued I.D. with your name and photograph.
Income Proof: This is required to see whether you will be able to repay the auto loan. A credit union assesses one’s assets, income, credit history, monthly expenses, employment, etc. You may be required to show your pay stubs of the previous month, tax forms, W-2 or W-4.
Residence Proof: Credit unions are required by the Federal law to provide information about a client’s residence proof. For this, you may be required to produce documents such as a utility bill, medical bill, tax bill, cell phone bill, lease agreement, mortgage statement, bank statement, renters or homeowners insurance policy, etc.
Credit And Bank History: The credit union will review your credit history along with your credit accounts, credit limits, account balances, etc.
Debt-to-Income Ratio: Late payments and total debt obligations, unpaid bills and collections, foreclosures, etc. are considered by credit unions to determine debt to income ratio.
Down Payment: An important part of preparing for an auto loan is to determine the mode by which you will pay the down payment. This could be by cash, credit card, debit card, personal check, etc.

In conclusion, credit unions are a convenient means of financing with limited qualification requirements. They offer a variety of financial services in addition to auto loans e.g. personal and home financing options. When approaching a credit union for an auto loan, it is recommended to go prepared as per the checklist provided above for faster initiation of the loan process.

Greater Central Texas Federal Credit Union provides affordable auto loans to its members. Members can borrow auto loans from the credit union on both new and pre-owned vehicles. For more details on the checklist for getting an auto loan from a credit union, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.

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