Direct Lending Through Your Credit Union

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - May 17, 2018

When consumers need a car loan, the best place to begin the search is often a local credit union. Credit unions are often a better source for loans because they’re typically more customer focused than banks.

Why it’s Easier to go Through a Credit Union

Credit unions are member-owned financial institutions that are usually more member driven. Unlike most large corporate-owned banks, credit unions don’t have to worry about paying shareholders. This means credit unions tend to charge fewer user fees than banks, and they also pass additional savings on to their members in the form of lower interest rates on lending products like car loans.

Being member-owned, however, means that not just anyone can walk into a credit union and open an account. Qualifying for membership in a credit union typically involves such things as being in a profession, living in a particular geographical area, or belonging to a fraternal organization.

Members May be Able to Get Loans without Perfect Credit

Just because it may be easier to qualify for a car loan from a credit union doesn’t mean that everyone will be approved. If you’re struggling with credit issues, you may find it’s still difficult to get approved, especially if your credit score is below 620. Members in good standing, however, have a better chance of getting a direct loan from their credit union than from a bank.

Banks are usually able to offer lower interest rates for auto loans, but they tend to extend these loans only to borrowers with good credit, namely scores of 700 and above. Banks are also more likely to charge overdraft fees, ATM fees, and monthly service fees to their account holders – all fees members typically aren’t charged at credit unions.

What if I Don't Belong to a Credit Union?

You don’t belong to a credit union, you say? These days, membership requirements aren’t as narrow as they once were, and chances are there’s a credit union out there for you. You just need to do a little digging to find the right one.

If you can’t find a credit union that’s right for you, CarsDirect can still help you take the stress out of finding the right lending solution for your situation. We work with dealerships across America with the lenders available that work with people who have credit challenges. Getting the process started is a breeze, just fill out our online auto loan request form, and we’ll get to work matching you with a local dealer!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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