Credit Union Car Loans Are An Affordable Option If You Can Qualify For Them
Even as everything becomes more expensive, Floridians depend on their cars as much as ever. Even if you were fortunate enough to stay employed and to work from home throughout the pandemic, it is painful to think about how much you have paid for gasoline during the past three years. If you have bought a car since the beginning of the pandemic, or if you have considered buying one, then you already know how expensive cars have gotten. In 2021, the average price of a new car was just over $48,000. Under normal circumstances, the obvious choice when you need to buy a car but cannot afford a new one is to buy a used car, but used cars are not cheap either these days. For people who have access to them credit union loans are an affordable way to finance a purchase of a new or used car. To find out more about qualifying for financial products within your means, contact a Boca Raton debt lawyer.
How Are Credit Unions Different From Banks?
From a consumer’s perspective, a credit union is a lot like a bank. Members of the credit union can open checking and savings accounts, like they would at a bank. Credit unions also offer their members various types of loans, such as car loans, unsecured personal loans, and home equity loans. Almost anyone can open an account at a bank, as most banks are large national or international companies. Credit unions are more like non-commercial organizations, however, in that they are only open to people who live in certain areas (such as the three counties of Florida’s Gold Coast; they are not as specific as being limited to Boca Raton) or who work for a certain group of employers. For example, some credit unions are specific to military families.
Why Are Credit Union Loans More Affordable Than Other Car Loans?
Credit unions’ only mission is to provide banking options and financial products for their members. Banks, by contrast, are also trying to make a profit for their shareholders. Therefore, credit unions can afford to offer lower interest rates on loans than banks can. Likewise, the interest rates of car loans from credit unions are much lower than on so-called “captive” loans, for which borrowers sign at the dealership when they purchase a car.
Do You Qualify for a Credit Union Car Loan?
Credit unions only offer loans to their own members, so it is a good idea to open a bank account at a credit union if you are eligible to do so. Even if you are already a member of the credit union, getting approval for the loan still requires a credit check. The interest rate and the amount you can borrow will depend on your credit score.
Work With a Debt Lawyer to Find Affordable Loans
A South Florida debt lawyer can help you make wise choices about borrowing and identify which loans will be the most affordable in the long term. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.