Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Tips To Reduce Your Monthly Auto Loan Payment

23. June 2016 Administrator Auto Loans (0)
If you are planning to finance your next vehicle, it’s a smart idea to consider various options to lower your repayment options. Factors such as the make of the vehicle, total loan amount, existing interest rates, your credit rating etc. play a major role in determining the loan repayment you may have to pay to your credit union. It is also important to note that interest rates for used cars are usually higher as opposed to a new one.

The following tips can help to reduce your monthly auto loan payments:

  • Refinance your loan: The term ‘refinancing’ means to repay your current loan by taking another loan which has lower interest rates. It helps to bring down your monthly payments and allow you to pay off the loan amount in a less period of time, thus making the whole procedure convenient.
  • Extend loan payment term: The longer your loan payment period, the lesser monthly installment amount you will have to pay. Carefully assess your existing loan repayment ability and see if you need to extend the term.
  • Save for down payment: When you think about making an auto purchase, make sure you plan much in advance so you can save up for the down payment. The higher the down payment, lower will be the monthly payouts.
  • Strengthen your credit rating: If your credit rating is strong, it is highly possible that you will get the lowest possible interest rates. This is because a good credit rating assures that the lender will receive timely repayments. Hence, it minimizes the risk for the lender which, in turn, lowers your overall monthly auto loan payment.
  • Shop around: Just as you shop around for your car, make sure you request quotes from at least three credit unions to compare their terms and conditions. Evaluate the interest rates and flexibility in repayments offered by them. Only after careful comparison must you finalize a lender that offers the most affordable auto loan plan.
We, at Greater Central Texas Federal Credit Union, offer low interest auto loan to the clients in Killeen, TX. Our staff will guide you through the different options available as well as assist in the submission of loan application. For more information about the auto loans offered, you can call us at (254) 690 – 2274 or visit our office at 3305 E Elms Rd, Killeen, TX 76542.
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GCTFCU Blog | Checklist For Getting An Auto Loan From A Credit Union
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Checklist For Getting An Auto Loan From A Credit Union

23. September 2020 Administrator Auto Loans (0)
Are you looking for an affordable and convenient source of credit for a vehicle? If yes, you should consider visiting a nearby reputed credit union for a better and detailed insight into auto loan financing. Credit unions are convenient and time saving financial institutions catering to all sorts of financial requirements of their members.

Listed below is a checklist for anyone interested in an auto loan from a credit union:

  • Determine Your Budget: Start with making a budget so as to choose the right auto loan in terms of pricing (monthly payments).
  • Get Pre-Approved: Even though your credit union will conduct a credit score check on its own, it is advisable to get the loan pre-approved from the credit union. This helps in determining the APR, amount that you can borrow and the duration of the loan. Pre-approval improves negotiation and increases the chances of getting the most appropriate deal for your budget.
  • Identity Proof: This includes a driver's license, a government-issued I.D. with your name and photograph.
  • Income Proof: This is required to see whether you will be able to repay the auto loan. A credit union assesses one’s assets, income, credit history, monthly expenses, employment, etc. You may be required to show your pay stubs of the previous month, tax forms, W-2 or W-4.
  • Residence Proof: Credit unions are required by the Federal law to provide information about a client’s residence proof. For this, you may be required to produce documents such as a utility bill, medical bill, tax bill, cell phone bill, lease agreement, mortgage statement, bank statement, renters or homeowners insurance policy, etc.
  • Credit And Bank History: The credit union will review your credit history along with your credit accounts, credit limits, account balances, etc.
  • Debt-to-Income Ratio: Late payments and total debt obligations, unpaid bills and collections, foreclosures, etc. are considered by credit unions to determine debt to income ratio.
  • Down Payment: An important part of preparing for an auto loan is to determine the mode by which you will pay the down payment. This could be by cash, credit card, debit card, personal check, etc.
In conclusion, credit unions are a convenient means of financing with limited qualification requirements. They offer a variety of financial services in addition to auto loans e.g. personal and home financing options. When approaching a credit union for an auto loan, it is recommended to go prepared as per the checklist provided above for faster initiation of the loan process.

Greater Central Texas Federal Credit Union provides affordable auto loans to its members. Members can borrow auto loans from the credit union on both new and pre-owned vehicles. For more details on the checklist for getting an auto loan from a credit union, visit 3305 E. Elms Rd., Killeen, TX  - 76542. You can also call at (254) 690 – 2274.

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