How can I get a car loan from a credit union?

I've heard credit unions are an option for getting a car loan, but I don’t know much about them. What do I need to do to get a loan from a credit union?

Answer
You can get a car loan from a credit union—and they’re a great place to apply, as they tend to offer lower interest rates.
To get a car loan from a credit union, you will need to:
  • Be a member of that credit union
  • Have a good credit score
  • Choose the car you want
  • Know how much you’ll need to borrow
  • Figure out how much you can afford to put toward a down payment
  • Show proof of income
  • Show proof of insurance
  • Show proof of residence
  • Show proof of identity
Generally speaking, these are the same requirements that banks and dealerships have for loan applicants. The big difference is the membership—but usually, becoming a member is simple and well worth it.
Because credit unions are nonprofits intended to serve their members as opposed to their investors, it allows them to offer lower interest rates. This is what makes them popular for loans.
No matter how you choose to finance your car, remember that you’ll need car insurance. If you want to save money on car insurance, the Jerry app is a good place to start. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. The average Jerry user saves $879 a year!
Lauren Smith
Answered on Nov 18, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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