When it comes to loans of any kind, the idea of paying off monthly bills or even acquiring debt can be somewhat intimidating. While it may be tempting to shell out a large sum of cash to pay for a vehicle upfront, slow and steady certainly wins the race.
If you’ve found yourself pondering the question, “how do car loans work?” or are hesitant about available loan options, we’ve got the answers you need. Check out the benefits of financing a car with 1st Ed Credit Union.
When “shopping” around for the best vehicle loan to finance your dream car, interest rates are the biggest factor to consider.
At any financial institution, your monthly payment will be determined by three components: loan amount, Annual Percentage Rate (APR), and loan term. But what typically defines your loan’s manageability is how much you’ll need to pay per month to stay on track. Monthly payments on vehicle loans at 1st Ed are affordable and convenient due to our competitive rates and the ability to pay bills online with the click of a button.
Pre-approval on a vehicle loan is all part of the car buying process because it allows you to map out how much you can borrow and the corresponding monthly payment.
Known as a vehicle loan quote, pre-approvals provide you with an estimate on how long it would take you to pay off your new or used vehicle in full, which will give you a good idea of what your car budget might look like. All it takes is a simple application process and you’ll be on your way to shopping for that dream car!
The Potential to Boost Your Credit Score
As is the case with any loan, a good credit score is the key to lower interest rates and monthly payments. That being said, to maintain a strong credit score or even improve it, it’s important to make on-time payments regularly. Since your FICO score is calculated largely based on payment history, taking out a vehicle loan and keeping up with monthly bills could help you boost your creditworthiness.
Paying for a car without a loan is a quick way to drain your bank account — but settling for a cheap car isn’t a smart way to work around this. While ditching the perfect car for a below-average vehicle may feel like the way to save money, you’ll probably end up paying the difference in repairs or maintenance down the line. Lock in the vehicle loan rate and terms that allow you to purchase whatever vehicle your heart desires — without any future surprises!
With zero prepayment penalties or application fees and the ability to get your loan approved before you hit the car dealership, that dream car can finally be within your reach. Apply for a vehicle loan with 1st Ed Credit Union today.