I'm trying to get a new car, but not sure if the credit union will give me a loan. are credit union's more relaxed?

I'm trying to get a new car, but not sure if the credit union will give me a loan. Are credit union's more relaxed? Ya so I tried applying for a car loan at a bank but they wouldn't give me a loan.So now a few months later I'm going to try in a few weeks to open a loan at a credit union.

I have heard that they are alot more relaxed and give loans alot easier. What do you think? Asked by whit 45 months ago Similar questions: car credit union give loan union's relaxed Business > Financial Planning.

Similar questions: car credit union give loan union's relaxed.

The usual reasons are things like: debt-to-income ratio is too high, recent bankruptcy, history of late payments (or non-payments), problem verifying income, etc. If you appear to be a particularly bad risk, a credit union will likely be apprehensive about making a car loan to you. However, in general, your impression is basically true. Credit unions have a deserved reputation for being somewhat more willing to extend credit to people with poor credit history.

But that doesn't meant they are gullible.At least in my state, credit unions are much more willing than banks to do car loans. But a lot of credit unions (banks, too) practice what is sometimes called risk-based lending. In a nutshell, what that means is that if you've got a great credit rating, they might offer you a car loan at something like 5.25%.

If you've got poor credit score, they might still offer you the loan -- but at a much higher interest rate, say 8.5% or 11% if you're a really bad risk. The best thing to do is to join a credit union before you need a loan. You can often open an account with a little as a $5 deposit.

If your credit is bad, take the initiative. Make an appointment with a loan officer. Explain that you know you've had problems with and that it's adversely affected your credit-worthiness.

Show them that you're serious about restoring your credit rating, and you'll probably find them willing to work with you to improve your score. Good luck! Sources: years of volunteer service on several committees at my credit union...

See inside There are some important differences between credit unions and banks:Credit union:Are not-for-profit institutionsCan serve only those individuals within their field of membershipHave members, each person who deposits money has a share of ownershipMembers elect a volunteer Board of Directors to represent their interestsDemocratically controlled by membersAre member service-drivenReturn profits to members in the form of lower loan rates, higher savings rates and free or low cost services. Are federally insured by the National Credit Union AdministrationBanks however,Are profit-oriented institutionsCan serve anyone in the general publicHave customers with no ownership in the organizationHave a paid Board of Directors who represent the owners; customers do not have voting privilegesControlled by stockholders and paid officialsAre profit-drivenReturn profits to a small group of stockholdersAre federally insured by the Federal Deposit Insurance CorporationEspecially the points:'Democratically controlled by members' and 'Are member service-driven' are important here. They exist to serve their members, but also rely on them.So, whether the credit union is going to be more willing to grant you a loan is dependant on the members, and how they are organised.

In general, they can take a bit more risk, as they don't have to make a profit, and are not driven by shareholders, so that gives you a bit more chance. However, if a bank is not going to give you a loan for a car, they might do that for a good reason. Please consider why they refued it.

They probably think it is going to be risky, as you might not be able to pay off the loan. Maybe that is an indication that you shouldn't try and get that loan in the first place?(sorry for interfering with your business like this, but I though I just give you this warning) Sources: http://www.affinityplus.org/member/cr_vs_bank.asp .

It is very good to think about it and look around before going into the dealership. Know what is available through a credit union, then go to the dealer. You know the dealer wants you to be able to buy their car.

They are pretty concerned about it these days. Most will have a list of options for you that depend on your financial situation. Most of those options will be from lending institutions with fair rates.

If you can't get someone to lend you money, you need to start working on your credit rating. Only poor risks have trouble qualifying. Even poor risks can buy cars though.

Maybe just not the one you have your heart set on. Sources: Sold cars for 3 months .

1 If you have a history with them - they can be. Otherwise, they tend to be very tough. But car loans are always open to repo, so you have to ask to know.

If you have a history with them - they can be. Otherwise, they tend to be very tough. But car loans are always open to repo, so you have to ask to know.

" "why don't ammazon accept credit union" "can money be garnished from a credit union on a unpaid loan" "Receiving a car as a gift, due to credit the loan/document would not be under my name, how can I validate its a gift. " "do you have experience with a credit union?" "Where can I get a personal loan for $2,000 with not so good credit? " "what is the role of education in successful financial planning?

" "i have no credit and need to buy a car. I want to buy it from a owner not a dealer, so can I get a loan from a credit un.

How to get an auto loan with 587 credit score.

Can money be garnished from a credit union on a unpaid loan.

Receiving a car as a gift, due to credit the loan/document would not be under my name, how can I validate its a gift.

I have no credit and need to buy a car. I want to buy it from a owner not a dealer, so can I get a loan from a credit un.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.