When you’re in the market for a new or used vehicle, finding the right auto loan can be just as important as finding the right car. While traditional banks are a common choice, credit union auto loans often provide better value and a more personalized experience for borrowers.

Benefits of choosing a credit union car loan for your next car purchase or refinance include:

• Competitive auto loan rates: Credit unions typically offer lower interest rates than other types of lenders. Because credit unions are member-owned, not-for-profit organizations, they pass their earnings back to members through better rates and improved services. With credit unions offering competitive interest rates as ways to save, more money can stay in your pocket over the life of your loan.
• Fewer fees: Unlike many traditional lenders, credit unions generally charge lower fees for their auto loans. You’ll often find fewer application fees, processing charges and prepayment penalties. This transparency in fee structure helps when creating a budget for your car purchase.
• Member benefits: Credit union membership comes with perks beyond just auto loans. Many offer financial counseling services to help you make informed decisions about your overall financial health while teaching you how to save money. They can provide guidance on building good credit practices and managing your auto loan responsibly.
• Flexible terms: Credit unions often offer more flexible loan terms and payment schedules to match your financial situation.
• Streamlined loan approval: Many credit unions have modernized their lending processes while maintaining personal service. This means you can often receive quick decisions on your application without sacrificing the quality of service.
• Personalized service: Unlike large lending institutions, credit unions prioritize building relationships with their members.

Some credit unions use an Auto FICO Score which weighs more heavily on your auto loan credit history from other credit. Using an Auto FICO may give you a higher credit score and lower interest rate, which could reduce the cost of borrowing money for your auto loan.

When applying for an auto loan at a credit union, you’ll need to provide comprehensive information to help the credit union evaluate your application and offer you the best possible terms. This information helps establish your creditworthiness and ensures a smooth application process.

• Personal information: You’ll need to provide your full legal name, date of birth (DOB), Social Security number (SSN) and a valid government-issued photo ID. Current and previous addresses and contact information may also be required.
• Employment and income information: The credit union will need details about your current employer, including how long you’ve worked there and your monthly income. Recent pay stubs or W-2 forms may be requested to verify this information.
• Vehicle information: If you are refinancing your car, you’ll need to provide the year, make, model, mileage and Vehicle ID Number for the vehicle. If you are still shopping and don’t have this information, you can apply to get approved without it.
• Loan information: This includes the amount you wish to borrow, your preferred loan term and information about your down payment. You’ll also need to provide details about any trade-in vehicle, if applicable.
• Membership information: Since credit unions are member-based organizations, you’ll need to provide information to establish or verify your membership eligibility. This may include proof of residence, employment or other qualifying factors.

You could receive your decision instantly depending on the completeness of your application. To help expedite the process, make sure you have all required information and documentation ready before applying and respond quickly to any requests for additional information. For the fastest possible decision, consider applying during regular business hours and double-check that all information is accurate before submitting your application.

California Credit Union offers three convenient ways to apply for an auto loan. You can complete your application online through our secure website, speak with a loan specialist over the phone for personalized guidance or visit any branch location for in-person assistance. Each option provides the same access to competitive rates and dedicated support throughout your application process.