Car loans are a great way of getting the car of your dreams regardless of whether you have the cash or not. The only arduous phase in getting such a loan is the preliminary one where you need to do some homework on the financial institutions offering loans and what their terms and conditions are. It is very important to be clear about the fundamentals of a car loan and for this, you might have to ask your lender some crucial questions. Those taking such a loan for the first time might not even be aware of the intricacies of a car loan, and could end up in complications later on.

Anyone opting for a car loan should ask questions relating to the following points:

• Interest rate: You must ask about the rate of interest being offered on the loan to assess what your total costs will be at the end of the loan term. Credit unions are known to offer loans at very competitive interest rates, which make them a cheaper option in the long run.
• Term of the loan: Do inquire about the term of the loan, as a longer term will mean you will have to pay a lower amount of installments each month. On the other hand, a shorter term will require you to pay larger installments, which might become burdensome for some. Information on the term of the loan is very important to help you judge how much you will be comfortable paying each month.
• Down payment: A larger down payment will cut down on your interest charge thus lowering your costs while a smaller down payment will mean a higher interest. It is good to clarify how much the lender expects and what scheme of things will suit you the most.
• Prepayment of the loan: Ask your lender about the terms and conditions related to prepayment of loans. In some cases, the lenders charge a penalty from the borrower for paying back the loan before the stipulated period. Others do not charge penalties but refrain from refunding you any finance charges that you might have incurred.
• Late charges: Ask about the late charges that you will have to incur in case of a delay in the payment of an installment. The late charges are usually a percentage of the unpaid amount regardless of whether you have paid off a partial amount.

For all kinds of auto loans, contact us at Greater Central Texas Federal Credit Union at 3305 E Elms Road Killeen, TX 76542 or give us a ring at 254-690-2274.

• Focus on the community: A credit union aims at uplifting the financial understanding and positioning of its members. They plough back the finances they raise for the improvement of the objectives, thus making them a viable social organization.

• Easier loans and lower interest rates: Accessibility of loans at competitive interest rates is one of the biggest advantages of a credit union. The application process is much easier and the loans are approved in a shorter period of time.  

• Lower banking fee: Their overdraft policies, minimum balance policies are competitive and designed keeping in mind the benefit of the members.

• Easy to join: It is easy to become a member of a credit union. Membership may be accepted depending on your area of residence, thus opening its gates to more and more members.

• Education: One can trust a credit union to offer the best advice when it comes to financial constraints and liabilities. They organize periodic seminars, panel discussions, lectures, and personalized financial counseling to make the members aware of latest financial tools available.

• Accessibility: Credit Unions are managed by representatives amongst the members and thus are more receptive to an individual’s concern. They are connected digitally, giving its members various windows to interact and exchange views, all round the day.

• More personal: You can strike personal relations with the staff as they are more forthcoming in attending to your queries than anywhere else. You can discuss your problems, raise queries and express opinions as these unions respond promptly to feedback.