Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Secured Loans In Killeen, TX

7. July 2015 Administrator Auto Loans, Car Loan (0)
A secured loan is the most convenient and easy loan method among the different types of personal loans available. The basic concept is that the borrower needs to put up any of his personal belongings with the lender in exchange for the money. In case the borrower fails to repay the loan, the lender has the legal right to claim the collateral and get his money back.

One of the biggest reasons why a secured loan is preferred is the lower rate of interest that it entails. The collateral set forth by the borrower provides security to the lender against his money. However, many other factors may influence the interest rate on your secured loan.

Here are a few tips that can help you get the best possible rates on your secured loan:

  • 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.
We, at Greater Central Texas Federal Credit Union, offer affordable secured loans in Killeen, TX. For more information, you can call us at (254) 690 – 2274.
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GCTFCU Blog | Low Income Auto Loan In Central Texas
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Low Income Auto Loan In Central Texas

14. November 2015 Administrator Auto Loans (0)
Having a low monthly income can make it challenging for you to secure an auto loan. You need a loan plan that suits your budget requirements. A number of credit unions in Central Texas provide auto loans and refinancing options to people in the lower income group. Do a thorough research and compare the interest rates offered by these institutions to choose the one suiting your requirements.

Here are the factors that you need to consider while applying for an auto loan in Central Texas:

  • Period of job: In order to get a quick approval for the loan, you must have spent at least one year in your present job. However, if you did not stick to a job for a year, a credit union may check for at least three years of uninterrupted employment. At the most, you should have changed only 2-3 employers within this period.
  • Down payment: If you are applying for a low income auto loan, you will be required to pay some form of down payment to the lender. In case you don’t have any money at your disposal, you may inquire from your lending organization about the alternatives they can offer.
  • Credit profile: If you have a higher credit score or a longer credit profile, you can get a better rate of interest for a low income car finance program.
  • Duration of the loan: You can get your loan approved at a faster pace if you choose to repay within a shorter period of time. However, loans with shorter durations usually entail higher monthly premiums.
  • Debt to income ratio (DTI): Most of the lenders prefer a maximum DTI ratio between 40 to 50 percent. To calculate your DTI ratio, add up all your bills and divide the total amount by your monthly pre-tax income.
  • Payment to income ratio (PTI): For approving a low income auto loan, most lenders prefer a PTI ratio between 15 and 20 percent. In order to compute the PTI ratio, divide your new car payment by your pre-tax income.
  • Co-signer: There are a few lenders who approve convenient interest rates for low income auto loans in case you get a co-signer and have a good credit rating.
We, at Greater Central Texas Federal Credit Union, offer low interest auto loans in Central Texas. For more information, you can call us at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.
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