Why Financing Your Car Loan at a Credit Union Is a Smart Choice

When you’re buying a new or used car, people typically go straight to the local dealership. While dealerships make their own financing programs sound especially attractive, it’s always to your benefit to shop around for the best auto loan rates-starting with local credit unions. Here are some reasons why you’ll find better auto loan rates and more personalized service at a credit union.

You have a much better chance of getting your loan approved if you have second-rate credit or have had some credit problems in the past. They will more likely listen to your personal story over a traditional commercial bank.

A credit union is different than a traditional bank or other lending institution. They offer loans and other financial services to people through a cooperative membership and it is much more than just a place to house a checking or savings account. They show their members financial interest as a high priority and they are not in business to sell their members anything just to inflate loan volumes. Best of all, their profits go back to their members in the form of lower rates on other products and services like savings and loans. There are 377 credit unions in California with over 1550 local offices. Overall, throughout the country, they save their members approximately $8 billion a year in fees, dividends, etc.

Most credit unions offer better rates to their members or other financial institutions. Especially the banks available through the local car dealerships. Whether you have a large or small down payment for your new or used car, they can educate you on the best possible deals for your auto loan. According to the latest report from Informa, the average rate on a $30,000 new car loan from a bank is 4.16% and from a credit union is 2.82%; which is a 32% reduction in rate and equates to a savings of $1,100 over the life of the car loan.

As a member you have access to educational resources. Almost every credit union has a member or resource center where members can educate themselves about financing options and how to evaluate the value of their vehicle purchase. If you are an inexperienced car buyer you can turn to them for an unbiased opinion. Most importantly, they can show you how to calculate the real value of the car you want to purchase, not just what the dealer tells you, which will ultimately affect your final decision.

Enjoy a member-centered approach. Since loan decisions are made by a local volunteer board rather than a corporate office, members have a more personal experience. This local approach gives you the opportunity to discuss your loan options, discuss flexible repayment choices, as well as review your entire financial situation with your personal loan representative. This type of personal interaction takes away the pressure of applying and locking in your financing and you can be assured they are working with your best interest in mind.

A car loan is helpful. But a good car loan can make a dramatic difference in your life. Financing your next vehicle with your local credit union can save you money, reduce worries and minimize hassles. They specialize in good car loans that fit your specific requirements.

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Educators Credit – Extremely Beneficial For Youngsters’ Financial Future

Not too many people seem to know what credit simulation is. This is surprising seeing what a useful tool it is. Basically, like any simulation, that of credit allows you to enter different financial parameters belonging to a hypothetical situation. Then it predicts for you what would happen if you were to enter, deduct, invest, etc money in a particular way. Particularly helpful to people who chronically rack up bad credit scores, this software allows one to foresee what financial pitfalls lay ahead as a consequence of taking certain decisions. It is also useful when taking on any financial obligation like a mortgage or a loan of any sort – how to plan out payments throughout the year or years ahead, and how much of a risk it could turn out to be. Credit simulation provides advice too.

Credit simulation is also a useful tool for the executives and managers at credit agencies, banks, insurance agencies, etc to explain through a simple and potent visual how different economic circumstances could progress and what steps they as advisers and the client could take together. This is an ideal support system that aids decision making by clearly illuminating every aspect and consequence of the decision to be made.

And it is highly beneficial as an educative program for youngsters and students who are just now learning how to handle their monies. It works effectively to give them sufficient of a picture of the way that banking and other financial institutions, processes and laws work for and against them, it hypothesizes fiscal circumstances so they recognize how to best handle their portfolio, what their liabilities and assets are. It is absolutely apt in inoculating them against becoming one of those hapless individuals who are constantly battling to repair a bad credit score. It helps any one, at any age be more financially responsible.

There are several different types of credit unions formed to best protect the fiscal interests of certain sectors of society. One such is the Educators Credit Union. These unions are formed on the basis of a county or state for the benefit of teachers, students, alumni, PTA members and their family members. The advantages could be really low interest rates on home, automobile (used as well as new) and real estate loans and even on credit cards for members. Credit counseling, easy bill payments, even theme park discounts, scholarship, free or subsidized education, free financial literacy are all perks available to members of an Educators Credit Union.

It provides educators with resources like a curriculum to teach personal finance to adults and young ones alike with lesson plans, worksheets and presentations. Similarly for students of different age groups the Educators Credit Union would usually have online fun games or tutorials which imbibe in the young ones healthy financial practices and a solid knowledge base preparing them for the future. Even for adolescents on the brink of adulthood, they have shared bank accounts and classes on saving and information on other financial transactions through youth friendly counseling.

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