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

Questions You Should Ask Before Buying Auto Loan

23. April 2021 Administrator Auto Loans (0)

The process of buying a new or used car with the help of an auto loan is fairly simple if done under the guidance of a professional with in-depth knowledge of the requirements and procedure involved. Apart from being well-informed of your financial status such as monthly net income, credit score, etc. you should be equipped with the right kind of questions to ask before getting the auto loan.

Listed below are some questions an auto loan buyer should ask before getting one:

  • What Is The Interest Rate? The first question to ask is about the rate of interest for the auto loan. Interest rates for auto loans are expressed in the form of a percentage (Annual Percentage Rate). Owing a small amount of auto loans translates into a lower interest rate and vice versa. The aim of getting this information is to look for an auto loan that suits your financial requirements.
  • What Is The Amount Of Down Payment Required? Next, ask about the requirement and amount of down payment for the auto loan. The amount of down payment is equivalent to a certain percentage of the vehicle’s selling price. A borrower can either put down the minimum amount of down payment required or more as per the amount he can afford to put down.
  • What Would Be The Total Cost Of Loan For You? Get a clear picture of the total amount you have to pay for the vehicle by financing it. The total cost includes the down payment, loan principal and the interest part on the loan. It also includes loan processing fees and other fees if any.
  • What Is The Duration Of The Financing Period? Auto loans usually last for 36 to 72 months which directly impacts the amount of interest to be paid. So, depending on your budget, ask for an auto loan that is affordable in terms of interest. Short-term loans cost less as far as interest is concerned whereas long-term loans are easier for those on a budget.

Greater Central Texas Federal Credit Union offers affordable auto loans to its members. For more details on questions to ask before buying auto loans, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.

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

How To Apply For An Auto Loan

29. March 2017 Administrator Auto Loans (0)


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22. March 2017 Administrator Auto Loans, Blog, Home Loans (0)



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Auto Loan For Students: How To Get The Best Deal

19. January 2017 Administrator Auto Loans (0)
Owning a car is quite a big deal for students. It gives a sense of independence, freedom and a personal transportation to commute through the busy roads. However, owning a car comes with a lot of financial obligations. Though auto loans offer a good way to cover up the expenses, you must invest a lot of time and efforts to make sure that you get a suitable financing plan.

Given below are some tips that can help you get the best deal on an auto loan in Killeen, TX:

Choose The Right Car

Though you may be excited about buying your first car, it is important to make a well-informed decision about the right make and model. The price of the car is a prominent factor that determines the amount of loan you need to apply for. Make sure that you can easily afford the monthly loan payments along with additional expenses such as fuel, insurance and maintenance costs.

Research The Available Financing Options

Get quotes from multiple financial institutions to get the best possible rate on your auto loan. You can also visit a credit union as they offer loans at quite low interest rates. Make sure you completely understand the terms and conditions of different loan plans before you finalize anything. You can choose from a secured or unsecured auto loan, depending upon your requirements and budget.

Work On Your Grades

Credit unions in Killeen offer a lower interest rate to students who have a high grade point average (GPA). This is due to the reason that such students are considered responsible and are likely to be punctual in their monthly payments, thereby minimizing the risk for the lender. If you have a low or average GPA, you can consider working on improving it so that you are able to get a better interest rate on your car loan.

Pay A Higher Down Payment

The more money you can pay upfront for your car, lesser will the amount that you need to borrow. Making a large down payment will not only decrease your loan amount, but also the interest payments and monthly installments. Plan your car purchase well in advance so that you can start saving for the down payment. Borrowing a small amount of money will reduce the risk for the lender, allowing him to make a better offer on the interest rate.

Go For A Short Term Loan

Just like most students, you may consider buying an inexpensive or used car till the time you are able to afford a better model. Hence, it is quite likely that you would not want to keep on paying the loan for a span of 5 to 7 years. A better alternative is to choose a short term loan so that you can pay it off quickly and start saving for your next car. Though this may mean that you will have to pay larger payments every month, you can save a lot in terms of interest.

Know Your Credit Score

Though many students have never checked their credit score, it is important to do so when you are applying for an auto loan. Maintaining a good credit score will not only increase your chances of getting approval for a loan, you will also be able to secure a low interest rate. This, in turn, will allow you to make significant savings throughout the loan duration.

Get A Co-Signer

The credit rating of your co-signer can greatly impact the rate of interest quoted by the lender for your auto loan. Make sure you do not choose your parents or relatives as co-signer. Rather, opt for a person who has a good credit score and helps to lower your overall auto loan costs.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans from students in Killeen, TX. You can either choose from unsecured or secured car loans. Our staff will assist you with the loan application and all the paperwork involved in the process. For more details about the auto loan plans offered, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

Things To Consider When Deciding On A Loan Term

19. December 2016 Administrator Auto Loans, Home Loans (0)
Getting a loan has always been a daunting procedure. No matter you are a first timer or have prior experience in going through all the mortgage paperwork, there are a lot of things that need to be considered. You should perform a thorough research and evaluate all your options to ensure that you are making the right decision.

If you are planning to finance your home or vehicle purchase, one of the most important factors to keep in mind is the duration of the loan. There are both short and long term loans available. Here are some details on both types of loan plans:

  • Short term loan: A short term loan is usually for less than 3 years and is a good option if you want to save money in the long run. A smaller duration implies low interest rate and less amount repaid at the end of the loan tenure. However, you may need to pay more in terms of monthly repayments.
  • Long term loan: These can be defined as the loans that last for more than 3 years. These are generally preferred by borrowers who want to pay low monthly payments, despite of the fact that they end up paying more as the interest. Long term loans can either be secured or unsecured.
Things to consider when deciding the home or auto loan term:

  • Age: The age of the borrower has a major influence on loan term that he may be eligible for. Whether you are getting a loan from a bank or credit union in Killeen, make sure you inquire about any specific age criterion that they may have. Most lenders do not provide loan term loan to individuals who are nearing their retirement or have already exceeded that age. In such cases, you can either opt for a short term loan or inquire if you can allot a younger applicant to make the remaining payments post your retirement.
  • Your income: Your income is also an important factor in determining the amount of loan repayments you can conveniently afford every month. To select the most suitable loan tenure, keep in mind your total income from all sources and the financial liabilities you have to bear, i.e., insurance payments, kids’ education, home rent etc. Therefore, you should choose a plan that allows you to easily pay off the loan in the minimum time period while retaining sufficient savings for unexpected circumstances, such as a medical emergency.
  • Amount of loan required: The higher amount of money you borrow, more will be your monthly installments and interest payments. Hence, you should try to apply for a smaller loan so that you can pay the least amount of money at the end of the loan tenure. This way, you will not only be able to pay off the loan early, but also make considerable savings on interest payments.
  • Rate of interest: Comparing the interest rate quoted by the credit union is also important while deciding on the loan term. Depending upon whether you are opting for a variable or fixed interest rate, your overall loan payments may vary. For variable interest loans, you may have to pay higher monthly installments in case of a long term loan. This may be due to the fluctuations in the market rate over the span of years. Short term loans, however, may not be affected much in this case.
After evaluating all the factors, the general consensus is that you should opt for a home or auto loan that offers the lowest interest rate and for a shorter duration. However, make sure that you are able to pay the monthly installments without any sort of financial burden.

Greater Central Texas Federal Credit Union is a leading credit union in Killeen. We offer a wide range of home and auto loan plans at low interest rates. You can also avail many other financial services by being a member of the credit union. For more details about our services, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

Unsecured & Secured Auto Loans: Which Loan Is Best For You?

24. November 2016 Administrator Auto Loans (0)
If you are planning to finance your next vehicle purchase, you may have come across the terms 'secured loan' and 'unsecured loan'. Though both the types of auto loans offer varied advantages, it is best to understand the differences between them to decide which one would be a better option for your particular situation.

Given below is a complete comparison of unsecured and secured auto loans to help you make a well informed decision:

Unsecured Auto Loans
In this, the lender approves the loan on the basis of the credit worthiness of the borrower. There is no need to provide any form of security to the lending institution. Once the borrower submits the loan application, the lender evaluates his current financial resources and previous credit records to determine if he will be able to pay back the amount along with the interest rate.

The typical characteristics of an unsecured auto loan are as follows:

  • Interest Rate: The rate of interest quoted for each borrower may vary. Depending upon the borrower's income, credit rating, other financial liabilities and the amount of loan, the lender may charge a reasonable interest rate.
  • Premiums: The borrower can either buy the loan at a fixed or variable interest rate. In the former one, monthly premiums remain constant throughout the duration of the loan. However, in a variable interest rate, the installments may keep on changing according to the current market conditions.
  • Borrowing Limits: The loan amount that can be sanctioned in this case depends upon the value of the car you are planning to purchase. Usually, you can get a certain percentage of the total cost and the remaining has to be paid by you.
  • Loan Tenure: Unsecured loans are available for both short and long term. Short term loans generally have high monthly installments but you end up paying less interest.

Secured Auto Loans
A secured loan can be defined as the one in which the borrower is required to put forward a collateral, usually the vehicle itself, against the loan amount. In case the borrower fails to pay back the loan and interest amount within the stipulated period of time, the lender has the legal right to sell the collateral to recover the money.

The typical characteristics of a secured auto loan are given below:

  • Interest Rate: The rate of interest quoted for a secured loan is comparatively less. Putting forward a valuable collateral minimizes the risk for the lender as he can easily recover the loan in case the borrower fails to do so.
  • Premiums: Secured loans are generally offered on fixed interest rates. Therefore, the premiums remain constant throughout the duration of the loan.
  • Borrowing Limits: If you are planning to purchase a luxury car, you should go for a secured loan as it has higher borrowing limits. You can borrow more money against a collateral of similar value, thus, minimizing the investment to be made out of pocket.
  • Loan Tenure: As the interest rates are quite low, you can conveniently repay the loan amount over a longer period of time. This implies that you would have to make lesser monthly payments, allowing you to save money for other financial liabilities as well.
How to decide between unsecured and secured auto loans:

Getting an auto loan can be a tricky process and with so many options available, you are quite likely to get confused. It is important that you evaluate your requirements as well as the loan plans to make the right choice. The following factors need to be considered while doing so:

  • The car you want to buy
  • Monthly installments you can afford to pay
  • Other financial liabilities
  • Amount of loan required
  • Interest rate quoted by the lender
  • Loan tenure
As compared to an unsecured loan, you can get quick approval for a secured auto loan, usually within a few days. This is because there is no need for the lender to conduct extensive background and income checks. Also, the terms and conditions for such loans are quite flexible which minimizes the financial burden on the borrower.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans in Killeen. You can choose from both secured and unsecured loan plans with nominal rates of interest. For more information, feel free to call us at (254) 690 – 2274 or visit our credit union at 3305 E. Elms Rd., Killeen, TX  76542.

Reasons To Choose A Secured Loan In Killeen

18. October 2016 Administrator Auto Loans (0)
When applying for a loan at credit union, you will come across two options - secured and unsecured loans. It is important to know about both these types of loans to make sure you make the right decision. Make sure you analyze your requirements such as income, debt, credit history and budget before choosing a loan plan at your credit union. Research thoroughly about various lenders so that you can get a loan at low interest rates.
 
What's The Difference Between A Secured And Unsecured Loan?

Secured Loans

These are backed by a collateral such as a car, property, stocks or any other valuable asset.