• They are owned by their members. Anyone who opens an account with a credit union, albeit a small one, becomes a partial owner. So, every member has an equal right to vote for the leadership position of the union. However, to become a member, one needs to qualify. For this:
  • You should live, work or worship in a particular city or area,
  • Be a member of a certain group e.g. the same college, armed forces, a church, etc.
• You will have to fill out an application form, prove your eligibility, provide the name of a relative, employer or organization you work for and personal information such as your place of residence and work.
• Thereafter you will have to choose the financial services you are interested in.
• Once you are eligible for being a member of the credit union, the next requirement is to open an account with it.
• Credit unions are federally insured or protected by National Credit Union Share Insurance Fund (NCUSIF).
• They consist of an upper management body which formulates strategies, makes policies and so on. This board generally comprises of elected volunteers.
• Service precedes profitability in credit unions and this is the reason for which they offer competitive rates for their services and products.
• Most credit unions offer savings and loan accounts to their members along with other additional products and services.
• Credit unions provide services such as Checking Accounts, ATM Cards, Credit Cards, Auto Loans, Payroll Deduction, Direct Deposit, Notary Service, Mastercard Cash Advance, On-Line Access, Mastercard Gift Cards, Wire Transfer, ACH Origination, Bill Pay etc.

• Credit Score - Credit score of a person is an important factor in deciding the amount of car loan they will get. Check out your credit score to calculate as to what amount of loan you would be able to qualify for. Also a good credit score can help you save on interests.
  

• Down-Payment - The amount you pay for down payment decides the amount of loan you would further need. If you have enough savings in your hand then you can easily pay more amount as down payment initially. Higher the amount, the lesser will be the amount of loan you would need, thus making it easy for you to qualify and get approved for a car loan. You can easily calculate the amount of loan and the interest thereon after considering the amount of down payment.
  

• Monthly Instalments -  An important aspect while determining the value of your car loan is the amount of monthly instalments. Plan your budget and calculate what amount of money you can easily pay. You want a loan with monthly instalments that will blend with other expenses you might have. Stick to the rule of not spending more than half of your monthly income on financial obligations towards other parties. Aim for a low budget as you will have an auto insurance to cater to on the purchase of a new car.

• Tenure - Do the rounds with lenders in your area and tell them your preferences based on where you stand financially. For clients with a good credit score, lenders usually recommend short-term loans. These loans have lower interest rates and higher monthly instalments. If you are looking for lower monthly payments and don’t mind higher rates of interest, then long-term loans are your best bet.
  

• Know Your Repaying Capacity – Do not borrow an amount which you cannot repay. Check if you have enough monetary and income sources to make sure you make no defaults on repayment of interest and loan amount.

• Take Loan From A Credit Union – It is a wise decision to opt for loans from credit unions. To apply for loan, a credit union membership is quintessential. From liberal policies to low interest rates, they offer a wide range of home loan options to their members.

• Start Saving For The Down Payment – No matter what type or amount of loan you opt for, saving early for the down payment is imperative. Saving and planning for your down payment helps you to take advantage of better options and to meet your financial commitments on time.

• Avoid Long Term Loans – Longer the period of loan, more the interest rates. To avoid shelling out dollars, it is highly advisable to take loans for a shorter tenure which are affordable and easy to repay.

• Ensure Complete Paperwork – To get qualified for home loan promptly, make sure that you possess all the necessary financial documents that your lender asks for.

• Plan Your Budget – If you are planning to take a home loan in near future, plan your budget accordingly. Cut down on other expenses to make sure that you save enough to fulfil your financial commitments that shall arise when you opt for a loan.

• Choose An Ideal Loan Option – Thoroughly research for all the available loans options and select that one whose terms and conditions suit you the best. Carefully choose the loan type after considering your financial status and requirements. Focus on all the aspects of the loan rather than just taking into account the low interest rates.

• Improve Your Credit Score – You must have a good credit score to secure the best deal. The lender would certainly consider your credit records to ensure himself whether you would be able to repay your loan or not.

• Use A Mortgage Calculator- It requires you to enter some basic details like price of home, your down payment savings, payments per year etc. The easy to use calculator allows you to calculate mortgage payments you would need to pay on the basis of the information you fill in.

View Full Image