If you have bad credit and need an auto loan, you may believe that your options are limited. Fortunately, you’re not alone. Many people with subpar credit are in need of a car loan, and credit unions are a great option for such people. These organizations offer subpar credit car loans to people who qualify.
PenFed Credit Union
If you’re looking for a credit union that offers auto loans for people with bad credit, PenFed is a great choice. This financial institution is based in McLean, Virginia, and has over 1.8 million members across the country. The credit union is affiliated with Allpoint ATMs, meaning you can withdraw your money from a variety of locations. It is also federally insured by the National Credit Union Administration, which is equivalent to FDIC insurance for banks. As a result, you’ll enjoy some of the best auto loan rates in the country.
PenFed isn’t accredited by the Better Business Bureau, but the BBB has given them an A+ rating, which is better than the average. PenFed also has higher credit requirements than many other lenders, but the rates they offer are the best in the business. Plus, you can shop for a new or used vehicle from their website, and complete the loan application in one place.
SchoolsFirst Federal Credit Union
SchoolsFirst Federal Credit Union is a great option for people with bad credit who want to get a loan for a new car. It offers competitive auto loan rates, free checking accounts, and a personalized auto buying service. In addition to these benefits, the credit union offers other budget-friendly financial products and services, including low interest mortgages and real estate loans.
SchoolsFirst Federal Credit Union is located in California and serves over 1.2 million members and their families. The credit union has been ranked as the best credit union in California by Forbes. This financial cooperative has been a top credit union for four consecutive years. It offers excellent loan deals and auto insurance savings for members. The credit union offers both new and used car loans at 2.49% APR and offers financing for private car sales.
Northwest Federal Credit Union
Northwest Federal Credit Union offers auto loans to members with bad credit with low rates and long terms. It also offers auto lease buyout loans and refinancing options. For example, it rewards members with low rates if they purchase the latest model year cars. In addition, it adds 2 percentage points to its lowest rate if you purchase a vehicle that has over 100,000 miles. Its membership requirements are easy to meet.
Another advantage of credit unions is that they can offer a lower interest rate and flexible payment plans than a traditional lender. However, they will require a cosigner with good credit who can financially support you. And they will also require that your credit score be above a certain point to be approved. Not all applications are approved immediately, so you must be patient.
State Employees Credit Union
Whether you need a new or used vehicle, the State Employees Credit Union can help you get the financing you need. Their competitive rates and low minimum credit scores make it possible for people with a low credit score to get a loan. You can apply online or over the phone. You will need to provide proof of car insurance and other documents to get approved. You can also refinance your loan through another lender if your current one is not meeting your needs.
Applying for a loan from a credit union is similar to filling out an application at a bank. The information you need to fill out is standard. Most credit unions offer loans for new or used vehicles. However, some do not offer third-party financing, and some require you to apply in-branch.