Credit Unions and Car Loans

[spearmint]

I belong to a credit union and basically just use the checking account to cash my paycheck - money in, money out. I've belonged to it for about a year. How easy is it to get a loan from the c.u. for a car? Is it easier than a bank? My credit score is only about 580, though.

[StartingOver08]

Credit Unions usually have much better rates than the banks for auto loans. They typically are a little easier for their underwriting requirements. Remember they are 'member owned' so they can set up their own proceedures.

[3littlebirds]

I've worked for CU's most of my adult life and processed many a car loan application...

They can be easier to get credit through because they are more willing to look at your whole situation, especially if you have the documentation to back up your story regarding why your credit has suffered. That being said, even though CU's haven't been hit as hard by the country's financial system woes because they don't mess around with sub-prime loans, they too are currently tightening their lending guidelines. Definitely try the CU to which you currently belong first since you already have a relationship with them. If they cannot help, you could always try another.

And StartingOver is right, rates are typically much better than banks, especially for those who have less-than-perfect credit scores. It's still going to be high, but not as high.

Side note - if you can have your paycheck direct deposited and would be willing to sign up for automatic loan payments every time your paycheck comes in, that would be a good thing when they are looking at your application.

Good luck!