Why you should choose a Texas credit union for your auto loan

Thinking about purchasing a new or pre-owned vehicle? Obtaining an auto loan from a Texas credit union may be your best option. 与银行不同, credit unions are not-for-profit financial organizations, with members who are also part owners. This means members can vote on certain credit union operations, regulations, and processes. 银行s are for-profit businesses and owned and controlled by shareholders — people who have stock in the bank.

有超过 5000个信用合作社 在美国和 202个信用合作社 在德克萨斯州. Similar to for-profit banking institutions, credit unions can provide members with home and auto loans, 投资选择, and checking and savings accounts. 然而, as not-for-profit organizations, credit unions are taxed at lower rates, and these savings can be passed on to members. 

More than 121 million Americans are credit union members. They often share certain characteristics, such as attending the same school or place of worship, or belonging to the same labor union or homeowners’ association.  

How do credit union auto loans work?

发放这些贷款, credit unions utilize funds deposited by members and lend them to other members. Credit unions are able to make this money back when borrowers pay interest on these loans. This allows them to share the funds with members through lower fees, 特殊津贴, and higher interest on savings accounts or dividends.

汽车 贷款利率 from credit unions can be much lower than the rates offered by other lenders. The current average rate for a vehicle loan in Texas is 5.60个月贷款27%，但可以低至 .99%新开 & used vehicles when borrowed from a credit union. 

Interest rates offered through dealerships can also be high because dealers often work with various lenders to provide loans for buyers. Although state auto loan interest rates will vary depending on the financial institution, a borrower’s credit score will also influence the rate and loan term they receive. 

辅助产品 比如缺口保险, multi-shield保护, 残障保险, or an extended warranty can also be much cheaper when purchased through a credit union versus a bank or auto dealership. Credit unions also offer lower loan minimums for anyone purchasing less expensive, cpo汽车, or for consumers who are able to make large down payments.

Applying for an auto loan at a credit union is similar to the loan application process at a bank. Members should bring their identification cards, 就业信息, 收入证明, 信用评分和历史记录, 汽车保险证明, and details of the vehicle they’re interested in purchasing. 

How do I join a credit union?

有超过 200 credit unions in Texas, so you simply have to find one that interests you and explore its membership qualifications. Members typically must meet certain affiliation requirements, such as attending a particular college, working in a certain industry, 住在一个特定的区域, or having family members who already belong to the credit union. 

Joining a local credit union has advantages — it is familiar with the community and will likely offer products that are tailored to meet specific needs. Credit union members also have access to lower interest rates on other types of loans and better interest rates on savings accounts, 支票账户, 或光盘. 

In terms of auto loans, Texas Tech Credit Union members have access to some of the lowest interest rates in the state.

Joining Texas Tech Credit Union is simple and open to current and former students and many other members of the community. 点击这里 to see if you qualify for membership.