GCTFCU Blog | All About Credit Score

Buying a new car requires a good auto loan deal to make the process smooth and quick. After finalizing the car that you want to buy, it is important to determine the amount of loan that you will require. Be clear about the down payment you will be able to make easily. Also, check out the interest rates being offered by various credit unions to settle for a loan plan that best suits your pocket.

Below are some steps that can help you get the best deal on a car loan:

Gather detailed information about your credit history: Get copies of your credit reports to know your eligibility for applying for a car loan. Keep this information handy as you may be required to present the document when applying for the loan. Every credit union has a different eligibility for a car loan, so it is better to inquire beforehand. The interest rates you will be offered will depend a lot on your credit score.
Do your homework: It is imperative to shop around in order to look for the best deal on a car loan. Compare the interest rates offered by various credit unions in Killeen and opt for the one that complies with your budget. Do not forget to thoroughly read the terms and conditions of the loan plan you are considering. This will clarify all the rules and regulations of your car loan as well as avert any problems in the future.
Choose a shorter loan term: Although a long term loan will reduce your monthly cost, it will significantly add up to the total interest payments. So, it is better to limit your auto loan to the shortest time period that you can afford as this will help you repay your loan faster. Compare the loan terms of various credit unions to make a wise decision.
Concentrate on the total cost: It is important to focus not only on the monthly payments but on the total cost of the loan, including the interest payments. In order to cut down on your loan amount, you can consider paying a higher down payment towards your new car purchase.
Ask for cash discounts: You can ask for cash discounts from your car loan dealer. These discounts can contribute towards the down payment for the car. It is better to go in for cash discounts rather than asking to lower your monthly EMI.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans in Killeen, TX. We offer a wide range of loan plans with easy repayment options. For more information, you can call us at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX 76542.

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