A credit union auto loan works by using money deposited by members to lend to others. This money is paid back over time and includes interest, like a rental fee for the borrowed money. The borrower repays the loan and the interest, which helps the credit union earn cash. The profits from lending go back to the membership, which is why a credit union is a better option than a commercial bank. However, a credit card or other form of credit is not acceptable for a credit union auto loan.
A credit union’s lending criteria are less strict than a traditional bank or lender. However, it would be best to have good credit to qualify for a low-interest loan. Most credit unions gather information from your credit reports and use history. They also know about your employment and income history. To avoid having your application denied, you should have a … Read more