Many people struggle with high car payments and are unaware that refinancing is an option. Refinancing your car can lower your monthly payments and help keep some extra money in your pocket. A credit union can help refinance your auto loan with lower interest rates compared to the rates of banks.
Credit unions, unlike banks, can offer their members lower rates because they only operate locally. In other words, they are not huge, corporate companies out for profit. Credit unions are small, nonprofit organizations run by the same members that bank there.
There are certain factors that should be considered before talking to a refinancing agent at a credit union. If your credit score has improved since you first took out your loan, it can help you qualify for refinancing.
These are 5 tips to finding the best credit union:
- Check Websites: Check their websites for information on auto loan rates.
- Compare credit unions: Make a list of at least 3-5 different credit unions and compare their rates.
- Choose a reasonably priced car: A lower priced car can help you get a lower monthly payment.
- Compare lenders and credit unions: Look at banks and other financing companies and compare their rates to those of credit unions.
- Save up for a down payment: The more money you put down, the smaller your payment could be.
Refinancing can be a great opportunity to lower your payments if you are having trouble making your current payments.
If you would like more information on how a credit union works or becoming a member, contact our Valley Federal Credit Union main branch in Brownsville at (956) 546-3108.