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Registered nurses and healthcare workers should apply for car loans from federal credit unions offering competitive loan terms and reduced interest rate programs like NIH and Healthcare Associates.
- Healthcare workers can often qualify for more flexible terms and low rate discounts on auto loans through local and federal credit unions.
- Federal credit unions tend to offer more competitive rates and lower fees than other new car financing options for nurses.
- Even with specialized loans, nurses should still take steps like building credit history, applying for preapproval, and adding a cosigner to strengthen their financing terms.
NIH Federal Credit Union car loans for healthcare professionals
Anyone who works in healthcare can apply for an NIHFCU auto loan. Applying for a membership with NIH Federal Credit Union is a straightforward process, and you won’t even need to apply for NIHFCU membership until your loan is approved.
With NIHFCU, you can choose between the following vehicle loan options:
- New vehicle auto loan
- Pre-owned vehicle auto loan
- Auto loan refinance
- New motorcycle loan
- Pre-owned motorcycle loan
Expert tip: Sign up for an NIHFCU TotalCare Protection checking account for various perks—including a lower annual percentage rate (APR). Here’s what you can expect your predicted APR to look like for different auto loan terms (new or used) as of 2021:
| Loan term | Standard APR | TotalCare APR |
|---|---|---|
| 0-24 months | 2.24% | 1.99% |
| 25-36 months | 2.24% | 1.99% |
| 37-48 months | 2.74% | 2.49% |
| 49-60 months | 2.99% | 2.74% |
| 61-72 months | 3.49% | 3.24% |
| 73-84 months | 3.74% | 3.49% |
A TotalCare Protection checking account from NIHFCU also includes the following perks:
- Financing up to 125% loan-to-value
- Online auto buying services
- Extra protection programs, like Guaranteed Asset Protection (gap insurance) and Mechanical Repair Coverage
- No payments for the first 90 days
- Skip your payment once every 12 months
Healthcare Associates Credit Union car loans for healthcare professionals
You’ll have to be a member of Healthcare Associates Credit Union before you can apply for a car loan. To qualify for an HACU membership, you’ll need to be an employee or member of one of their many eligible companies and associations.
Here are the average loan terms for new or used vehicles you may qualify for with HACU:
| Loan term | APR |
|---|---|
| Up to 48 months | as low as 1.99% |
| 60 months | as low as 2.24% |
| 72 months | as low as 2.54% |
| 84 months | as low as 4.99% |
An HACU membership includes much more than qualifying for great auto loan rates! You’ll also enjoy the following perks:
- Fraud monitoring
- License plate renewals
- Auto refinancing
- Credit cards
- Home equity loans
- Personal loans
Key factors that affect your car loan
Lenders look at several factors when processing loan applications, including your credit score and debt-to-income (DTI) ratio. Your interest rates will be based on the following factors:
- Your credit history
- Your down payment
- The type of vehicle you’re buying
- The length of your loan
Your interest rates will either be calculated as simple interest or precomputed interest:
- Simple interest: Interested is calculated from the remaining principal balance of your loan. With this type of interest, making extra payments on your principal will lower your monthly payments going forward.
- Precomputed interest: Interest is determined in advance, so your total loan amount including interest won’t decrease with extra loan payments.
In addition to what you pay monthly in interest, you’ll also have an Annual Percentage Rate (APR). This includes the interest rate and any additional fees you have to pay to continue borrowing money.
How to get a good car loan
Before committing to the first deal you find, be sure to understand what goes into deciding your loan terms. That way, you can put yourself in the best position to get a favorable deal./lis
- Check your credit score: You generally want a credit score of 661 or higher to get a good car loan rate. The lower your credit score, the higher your interest rates will be.
- Evaluate your debt-to-income (DTI) ratio: Add up your monthly bills then divide by your gross monthly incomes. Lenders aren’t likely to give you a loan if your loan payments would take up more than half of your income.
- Get preapproved for loans: Getting preapproved for financing before going car shopping gives you the advantage of knowing exactly what you can afford.
- Consider a co-signer: A co-signer legally agrees to take over payments if you’re unable to keep up, giving lenders more peace of mind when determining your loan terms. This is an especially good route if your credit score isn’t great.
Macy Fouse is an insurance writer with over five years of experience in publishing and writing. A specialist in car insurance, car loans, and car ownership, Macy’s mission is to create content that equips car owners with the tools they need to reduce car ownership costs, master repair skills, and ensure they have the best insurance coverage for their drive. Macy has written nearly 1,000 articles for Jerry on topics ranging from state-specific driver’s license regulations to how your marital status can affect car insurance costs. Prior to joining Jerry, Macy leveraged her background in journalism, social media, and educational curriculum as a production editor for LifeWay Christian Resource.
Kianna Walpole is an insurance writer and editor with a comprehensive background in consumer behavior and online publishing. With experience in car insurance, maintenance, and repair, she is dedicated to building informative content that helps customers reduce costs while achieving the best service. Prior to joining the Jerry editorial team, Kianna worked as a junior editor in the content marketing industry, using consumer data and key insights to create and edit content for an array of large-scale clients in the real estate, cybersecurity, and healthcare industries.
