Credit Unions Good for Auto Loans

Less than one in five used car loans are made from credit unions, which is surprising because they can be a great source of low-cost loans because they can offer competitive financing rates to their members versus other institutions.What’s a Credit Union? Credit unions are financial institutions formed by a group of people with a common bond (like a church, business or union). Credit union members pool their assets to provide loans and other financial services to each other. These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees. Who Can Join a Credit Union? There are various types of credit unions. Some are affiliated with professional groups, others are part of companies,...

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How to Get a Bad Auto Loan

Getting an auto loan is a confusing and intimidating process. To get the best auto loan, you need to avoid mistakes. This page covers some of the easiest and most costly mistakes that you should avoid when shopping for an auto loan. 1. Focus on the Monthly PaymentIt’s good to know your monthly budget. It’s a bad idea to shop for your auto loan based on the monthly payment alone. There are several ingredients to a loan, and all can be manipulated to make the monthly payment appear low. Meanwhile, you’re still getting a bum deal. Negotiate the purchase price first, then figure out the financing later. 2. Stretch Out the PaymentsAlong the lines of 1, a longer auto loan term can keep monthly payments low. However, you’ll pay more in interest over time. It also takes longer...

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Before You Get an Auto Loan

It’s always a delight to get the keys to a new car. For most, the only challenge is paying for the car. Unless you have cash in hand, you’ll need some type of auto loan. Follow these six keys to a great auto loan and you can ride around knowing you got the best deal.Key to a Great Auto Loan 1: Manage Your CreditOne of the first things you should do before applying for an auto loan is review your credit. All US consumers are entitled to a free credit report, so use this resource. Find out if there’s anything you need to fix. Any errors or bad habits could affect your auto loan rate.What is Credit? How Credit Scores Work Key to a Great Auto Loan 2: Know How Much You Can SpendDiligent budgeters already know this, but I don’t run into very many diligent budgeters. Track your budget any way...

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Recourse Loans and Non-recourse Loans

Recourse loans are loans that allow the lender to come after you in case you default. You can contrast recourse loans with non-recourse loans, which create more risk for lenders. Let's take a look at recourse loans, how they work, and how to identify them. Recourse Loans - The RecourseRecourse loans get their name from the fact that lenders have power. They are allowed to go after you for amounts that you owe - even after they’ve taken collateral. If you default on a recourse loan, the lender can bring legal cases against you, garnish your wages, and try to collect the amount you owe. A legal action to collect money after foreclosure is generally called a deficiency judgment. How Deficiency Judgments Work How Collateral Works Non-Recourse LoansA non-recourse loan does not...

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Family Loan

Borrowers sometimes find that a family loan is the best option. What does it take to set up a family loan properly? You have to consider financial and personal topics to make sure the loan does not become a nightmare. What is a Family Loan?A family loan is any loan between family members. It doesn’t matter what the money is for. It’s just a loan that does not use a bank or other traditional lender. Financial ConsiderationsTo properly design a family loan, the deal must make financial sense. It should be: A good deal for the borrower A good deal for the lender Compliant with local laws and tax laws If you start with the goal of a win/win situation, your family loan has a better shot at success. Tax LawsForgiving loan balances or payments, and charging too little interest...

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IRA Loan

When you need money, an IRA loan may come to mind. Technically, it’s not possible to borrow from your IRA. However, you can do a few things that act like an IRA loan for quick cash. Learn what your options are. Is an IRA Loan Allowed?No. IRS rules dictate what you can do with IRAs and only allow 'distributions' from an account. If you want to review the rules governing your account, check with the IRS or a tax advisor about taking an IRA loan. Alternatives to IRA LoansSince you can’t do an IRA loan, you’ll have to try an alternative. You may be able to tap IRA assets using a 60 day rollover. You have to follow some strict IRS rules, but this technique can act like a short term IRA loan. You might also be able to borrow against balances in company retirement plans such as...

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Credit Union Loans

Credit union loans are among the most competitive loans available. How can you get one? You’ll need to become a member before you qualify for a credit union loan. Find out what it takes to get a credit union loan. How Credit Unions WorkIf you’ve never used a credit union, you may think they’re the same as banks. There are plenty of similarities, but credit unions are nonprofits owned by their customers. These characteristics often help credit union loan rates stay low. Fast Facts About Credit Unions Credit union loans come in a variety of flavors, but small institutions might have fewer options: Unsecured (Signature) loans Home equity loans Auto loans Business loans Student loans Becoming a MemberBefore applying for a credit union loan, you have to become a ‘member’. ...

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