question about credit unions..

[FORDTEXAS]

friend of mine is wanting to refinance their vehicle sometime this year. we all know that credit unions are notoriously known for having lower rates.

we also know that you must have an account with them in order to even apply for a loan. the question is, do you have to use the account at all or it is simply just having an open account with them??

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[UGADawg96]

It may depend on the CU. In my experience, just have to open an account don't even have to use it. I have used a local FL credit union for two loans that wasn't my credit union due to them offering better loan rates. The first was a truck refi. Had to become a member for $5. Never used their checking at all. BUT did have to make payments through it, so I transfered over each month the needed amount to clear. Finished that loan and a year or so later did a HELOC. Same deal. Paid those off a few years ago. They closed my $5 account after 24 mos of inactivity. They said if I wanted to do business in the future, I would have to reapply and pay another $5.

 

[SALEEN961]

This will vary a lot with different credit unions. Some will require a minimum balance or minimum account activity to keep the account open and membership valid. Some will want to see regular direct deposits or a minimum balance to avoid maintenance fees.

There are also some with no minimums and no fees that base your rates on how active you are. If you have regular direct deposits and agree to things like e-statements and electronic bill pay, they might lower your rates by 0.50%.

Right now everyone is offering terrible rates. When I bought my 2021 F150, my interest rate was 1.49%, right now the best rate my credit union offers is 6.74%.

 

[JJSnell]

Just bought a house using CU as lender and all they wanted was $100.00 in an acount. I asked to put it into a high yield savings account and Im never gonna look at it. I think i can close it now that the loan is done, but Im going to let it slow simmer. Probably go to the kids in 30years when its worth $103.57

Hehe

 

[LCF]

My credit union opened an account automatically when I went through with the loan. They also were able to beat Ford’s rates at the time.

I have yet to use the account for anything.

 

[FORDTEXAS]

Probably go to the kids in 30years when its worth $103.57

?

 

[adt1982]

My credit union opened an account automatically when I went through with the loan. They also were able to beat Ford’s rates at the time.

I have yet to use the account for anything.

I experienced the same thing. My CU account is sitting there with $5 in it; untouched since I bought the truck almost 3 years ago.

 

[powerboatr]

we have had redstone federal CU in huntsville al since 2004, we live in texas
you have to have an account to get a loan.
what you do with that min 25 dollar savings is ...keep at least 25
they used to beat Ford on loans on many points basis
but they have never beat 0 % or 1.9 that we have been able to get the last few years.
that being said we have had 3 rv loans with them, 3 vehicles, pers loan, a credit card and 4 savings accounts 2 of them earn high interest on everything above 2500...

we really like them
I never miss am opportunity to give them praise or recommendation

that being said each CU is different on rules because of state laws and their own by laws

 

[22Platinum]

Federal credit unions are typically the best, and most every agency has one associated with it. While you must be a federal employee for all of them, the vast majority have some carve-outs such as "live, work or worship" in the same county, or "member of the XXX Sheriff's association" (a $25 fee) then you can become a member.

 

[Grafx36510]

Federal credit unions are typically the best, and most every agency has one associated with it. While you must be a federal employee for all of them, the vast majority have some carve-outs such as "live, work or worship" in the same county, or "member of the XXX Sheriff's association" (a $25 fee) then you can become a member.

You don’t need to be a federal employee to be a part of a fcu. You just need to be able to meet the membership criteria in the by-laws.

EDIT: the difference between a federal credit union and credit union is in the charter. A federal credit union has a national charter and a credit union has a state level charter.

 

[Tnker]

This will vary a lot with different credit unions. Some will require a minimum balance or minimum account activity to keep the account open and membership valid. Some will want to see regular direct deposits or a minimum balance to avoid maintenance fees.

There are also some with no minimums and no fees that base your rates on how active you are. If you have regular direct deposits and agree to things like e-statements and electronic bill pay, they might lower your rates by 0.50%.

Right now everyone is offering terrible rates. When I bought my 2021 F150, my interest rate was 1.49%, right now the best rate my credit union offers is 6.74%.

Ouch. I refinanced with navy fed a couple months ago to bring my interest rate down to 5.3. The dealers financing which I used to take a deal was 6.4 last summer

 

[FORDTEXAS]

Ouch. I refinanced with navy fed a couple months ago to bring my interest rate down to 5.3. The dealers financing which I used to take a deal was 6.4 last summer

your rate still beats what is being offered current day by the big named banks.. lol

 

[FORDTEXAS]

forgot to ask.. but was the loan approval process easy for you fellas??

 

[SALEEN961]

forgot to ask.. but was the approval process easy for you fellas??

If you have good credit, getting approved for membership is usually very easy. Getting approved for a loan will depend on your credit score, income, and debt to income ratio. Low credit scores and high debt to income ratios are the most common issues from what I've seen.

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