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    Top 5 Industry Leading Credit Unions Offering Auto Loan Refinancing

    coin stacks in front of car

    If you think you’re paying higher installments on your auto loan, refinancing can help lower the interest rate and the monthly payments. One of the best places to get your auto loan refinanced is with credit unions. You’ll get the lowest rates and flexible terms. 

    Finding the right union can be a daunting task. So, what is the best credit union to refinance auto loans? Keep reading to find out.

    Why Should You Consider Refinancing From A Credit Union?

    Credit unions don’t charge excessive rates. This is one of the several reasons why these institutions are one of the most preferred platforms for refinancing auto loans. Here are some other reasons why you should consider refinancing from a union:

    • Reduced interest rates. They’re non-profit organizations that offer to refinance car loans with reduced interest rates. For instance, a normal APR provided by the banks for a car loan is 4.93%, while a union gives car loans at an average APR of 3.37%
    • Good for less-than-perfect credit. One of the major advantages of choosing a non-profit organization for refinancing a car loan is that they help with loans for borrowers with poor credit scores. Compared to other places, you’re more likely to get approved, even with average scores
    • Lower minimum loan amount. These institutions also offer lower minimum loan amount facilities compared to banks. For borrowers looking for a small portion of funding, going with these organizations would be beneficial
    • Reduced fees. On becoming a member, you’re entitled to the different benefits that come with the car loan. Aside from reduced interest rates, you may also receive repayment discounts, reduced origination, and processing fees

    How Can You Get A Refinance From Credit Unions?

    There are two ways to get approved for a refinance from any non-profit bank:

    • Through a membership. You must be a member of the union. To become a member, you need to qualify with various eligibility requirements based on your work, the place where you live, and the organization you’re connected with
    • Common loan process. Similar to other loan processes, you’ll need to provide them your details Such details will include employment information, credit history, income proof, and identity proof. Additionally, you’ll also need to provide all the details about the car you’re willing to purchase along with insurance proof

    Finding The Right Credit Union

    These organizations are known to offer competitive rates and loans to borrowers with low scores. However, keep in mind that they don’t all follow the same practice. Each union can have its own eligibility criteria. Hence, it’s important to do the research and find the right one. Keep these things in mind when choosing:

    • Take time to research the available options and try collecting as many quotes as possible. Check eligibility criteria and credit score requirements to filter out those that meet your preferences
    • Consider getting preapproved by multiple lenders. Although it isn’t a guarantee of financing, it still helps you compare the available offers
    • Make sure you are applying with a reputable union. Check existing customer reviews and other details from the Better Business Bureau and Consumer Financial Protection Bureau websites

    Top 5 Credit Unions

    1. Consumer Credit Union 

    This organization helps with various loan offers and refinancing offers for different vehicles like motorbikes, small cars, trailers, boats, cars, and so on. This union offers a loan amount ranging from $250 to $500,000 with an average APR ranging from 2.99% to 21.99%

    1. NIH Federal Credit Union 

    This union helps its members with loans and refinancing loans for both new and used cars. These loans come with reduced interest rates and flexible terms. The average APR is 1.99% for up to 84 months

    1. State Employees Credit Union 

    With up to 100% loan facility, this union provides loans and refinancing loans with an APR of 2.72% for a term ranging from 36 to 96 months. Upon approval, the union provides the customer with a blank check. This allows them to own the car immediately

    1. Navy Federal Credit Union 

    This union is for members connected with the Department of Defense, military, National Guard, or Coast Guard. The union helps with financing options for new cars with an APR of 2.89% with 100% financing 

    1. EECU Credit Union

    This institution is popular for offering competitive rates and pre-approved loans. The minimum APR is 3.40% with an average term ranging from 12 to 84 months for new and used cars. The loans are easily available to the residents of Texas

    Bottom Line

    Getting a car loan from a non-profit bank comes with various benefits. These benefits can differ individually depending on the practices of the union. Therefore, take your time when comparing the organizations in your area and choose the right one that fits your budget.