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      Getting an Auto Loan with Low Rates

      Whether you are offered an auto loan with a reasonable interest rate depends on a number of factors – your financial institution, the amount required, type of vehicle, if it is a new or used vehicle, and a lot more. Your income and credit history would be taken into account as well.

      Contact Financial Institutions in Your Area

      It is better to shop for an auto loan separately because car dealerships usually offer higher interest rates than than banks. Your insurance provider is also an option. If you are a union member, check with them first. Unions usually offer attractive rates on financial products and in most cases, the lowest interest rates on vehicle loans. Once you are prequalified, you can go to the car dealer. Make sure you bring a blank check along.

      Stay Away from Providers That Offer Conditional Financing

      This is very important when applying for an auto loan ?because if you agree on conditional or contingent financing, the provider is free to change the terms and conditions at any time. You have to be extra careful when you deal with car dealerships if this is what you choose to do. Make sure you have a formal agreement that details things like the monthly payment amount, loan repayment schedule and length, interest rate, down payment, and so on.

      Focus on Your Credit Score

      Obviously, lenders?take a closer look at your credit history and score. Applicants with spotless and very good scores are more likely to benefit from attractive terms and rates compared to those with blemished credit. To this end, the first step is to ask for a free copy of your credit report. Once you get the copy, check the report for omissions, errors, and inaccuracies. If the report looks OK, the next step is to focus on your score. If you have a poor or fair score, there are different ways to improve it provided that you don’t need a car loan urgently. One thing to do is to apply for a small loan with a short repayment period. Another is to apply for a personal credit card with a small limit. Keep in mind that if you are in the high-income bracket, the issuer may be more willing to offer better rates even with average credit.

      Down Payment

      The more money you save toward the down payment, the better the terms and conditions. With a larger down payment, you will be able to repay the loan within a shorter period of time.

      If paying for a car is out of reach for you at the moment because you have bad credit you can consider getting a credit card first, which will allow you to improve your credit and eventually apply successfully for a car loan. Sometimes your credit might be so bad, that the only option is a secured credit card, but this will still work towards improving your credit.

      Read the Fine Print

      Even if you are happy with the interest rate and other terms, it is important to read the fine print carefully. There are red flags to pay attention to, including things like prepayment penalties, whether you are offered a fixed or variable rate, the amount of the down payment, and others. Be extra careful if the fine print includes mandatory binging arbitration. This means that if you are unhappy with the terms or anything else, you don’t have the right to go to court and sue your financial institution.


      Options for Credit

      Bad credit loans come in different varieties, from consumer and car loans to payday and other lenders. Credit cards are also available to customers with fair and tarnished credit, and union members often resort to this option.

      Bad Credit Loans

      There are different ways to gain access to cash, even with a less-than-perfect rating. One idea is to apply for a home equity line of credit and pledge your home equity as collateral. Ask financial institutions whether they offer tax-deductible lines and what the interest rate is. Another option is to check with payday lenders, especially if you need a small loan to cover emergency expenses. There are reputable lenders that offer quick cash to borrowers who have bank accounts and stable income. Interest rates are considerably higher compared to traditional providers, but payday lenders point to the fact that they deal with high-risk borrowers. Peer to peer loans are yet another option for customers with thin credit profiles. There are online platforms which connect borrowers with individual lenders that are willing to offer financing to consumers who meet their criteria. Individual lenders are often more empathetic and willing to deal with bad credit borrowers compared to banks.

      Bad Credit Car Loans

      If you are looking for a car loan and have poor credit, there are several options to finance the purchase or cover the down payment. There are lenders that specialize in subprime loans but the rates are higher than conventional financing options. You may want to check with your local bank first, especially if you have a savings or checking account with them. Your credit union may also offer better terms provided that you contact them and explain the reasons why you experience financial hardship. Auto financing is also available from some insurance companies. You may want to check with your employer as well. Other lenders to look into include online banks, regional financial institutions, and car dealerships. In any case, look for car financing with a short repayment schedule and attractive APR. Avoid lenders that offer add-ons such as insurance packages, after-market services, and extended warranties because this adds to the cost of financing.

      Credit Cards for Bad Credit Offered by Unions

      Unions are known for superior service and lower interest rates on loans, credit cards, and other financial products. The reason is that they are owned by union members and aim to provide affordable financial solutions. Consumers also benefit from no minimum balance requirements, flexible repayment terms, and fewer strings attached. Fees and charges are also lower. Unions also offer different types of credit cards, and some products are available to borrowers with poor ratings and limited credit exposure. If you are a member and have established a relationship already, you have better chances of getting approved. One option to look into is a secured credit card whereby you make a deposit as a guarantee of timely payments. With time, your financial institution may be willing to offer an unsecured card if you make on-time payments.

      There are other solutions to look into if you have poor credit, one being subprime credit cards. While this is a last resort because of the higher rates, payments are reported to the major bureaus. Other options include department store and prepaid cards.


      New Union Project

      Canadian credit unions offer a wide array of financial products and services to their members, including wire transfers, savings and checking accounts, loans and mortgages, investment solutions, and more. The largest credit unions include Affinity, Steinbach, Cambrian, First West, and Vancity, among others.


      Credit unions in Canada serve business customers and individual clients and offer attractive earn and interest rates to their members. Some are large and serve customers across Canada while others are regional or local. There are a total of 696 unions with thousands of provincial and territorial branch locations. They serve about 42 percent of all Canadians and are accountable to their members. There are some major differences between credit unions and banks, one being that the former are non-for-profit organizations. This means that they operate to offer products and services at a small percentage of their cost. Unions are also more willing to offer loans and other products to customers with fair credit and provide more personalized services. In addition, they were the first to offer products and services such as check imaging, registered education plans, home equity lines of credit, open mortgages, and debit card services. They were also the first to offer loans to women in their own name. Today, there are large Canadian unions such as Affinity, Conexus, and Coast Capital that offer standard and specialized solutions at affordable rates, and it is not surprising that in North America the highest per-capita membership is actually in Canada.

      Services Offered

      Unions in Canada offer a comprehensive range of financial solutions, including payroll deduction, lines of credit and personal loans, progressive, open term, and fixed rate mortgages, and many others. They also serve business customers and offer financial services such as start-up, operating, and term loans, commercial and business mortgages, commercial equipment leasing, and growth capital. Unions also offer various accounts, including custom, independent, high-interest, and others. The range of products offered also includes specialized and custom sector solutions, standard and specialty credit cards, wealth management, and small business banking. Unions also offer insurance coverage to help members protect their vehicles, homes, and other property. Customers can choose from different types of coverage, including credit, mortgage, travel, home and car, and personal insurance. There are different types of credit cards to choose from, including rewards, cashback, no fee and low fee, standard, and student cards.