Credit union loans

[littlejuanito]

I just joined a local credit union . My plan is to start restablishing credit and a few months from now apply for a loan with the union. How hard is it to get approved by a CU once you are a member. Do they give you more lineancy approving you for loans and credit cards or it's just as hard as applying with a bank?

[littlejuanito]

Anyone?

[highNdry]

Hi littlejuanito,

Did you had any overdraft that you included in your bankruptcy? I have a overdraft in my chexsystem and I wonder if I can open a checking account in any Bank or in the internet? I do have a Credit Union checking account.

[FilingOnMyOwn]

They might. More importantly when you apply, is your available down payment. Having 1/3 down is the best level of comfort when applying, if you have that and they turn you down than you have no chance, but they usually won't turn that down.

[littlejuanito]

I will definetively have 1/3 or even half for a dowm payment. My questions is this now:
If the car I wanna get is priced at $8000 and I have $3000-4000 to put down. I will need to borrow about $4000-5000. I will still need the credit union to approve me for the remaining amount, so how does having a large down payment affect my chances for approval? Is it because there's less money to be borrowed?


BTW: Some Credit Union have a minimum they're willing to lend. How would I go about it in my situation?

[FilingOnMyOwn]

A large down payment insures to them that you 1) Have the money, & 2) In the event they have to repo the car there is already enough equity that they won't be losing money.

[littlejuanito]

A large down payment insures to them that you 1) Have the money, & 2) In the event they have to repo the car there is already enough equity that they won't be losing money.

Let's say I wanna buy a car from a private party for $8000. I have $3000 saved up. I need to borrow 5k from a credit union. Should I tell the CU the car is worth $8000, I'll putting down 3K and I only need to borrow 5k?
Or should I just ask for 8K? I'm kinda confused as the best way to do it

[13inOR]

The lender would determine the cars value by using one of the resources like Kelley Blue Book, or NADA or something like that. They would never loan more than a certain percentage based on cars value, because cars depreciate quickly and they would want to get their investment out of it if you were to default on the loan. A lender would never loan the full amount of a cars value.


Having 3K down on a car worth 8k would be a good downpayment, but it still depends on the lender what your interest would be and if they would approve the loan to begin with.

They might even ask for more money down in some cases. It just depends.

[SinkingFast]

Just a suggestion, but you might call a few banks. Tell the type of car you're looking to buy, year, mileage, etc. Then ask what the KBB or NADA book value is and what that particular bank's loan value on the vehicle is. That will give you an idea if the asking price is fair and if your down payment is enough or not before you inquire at the Credit Union.

[littlejuanito]

Just a suggestion, but you might call a few banks. Tell the type of car you're looking to buy, year, mileage, etc. Then ask what the KBB or NADA book value is and what that particular bank's loan value on the vehicle is. That will give you an idea if the asking price is fair and if your down payment is enough or not before you inquire at the Credit Union.

Well, the car I wanna get is a 1991-1996 Nissan 300ZX. I know it's an old car, but it's the one I've always wanted. They're usually priced under 10k. I'm saving as much as I can because I'm still gonna need to finance the difference. How do lenders go about financing you on a 10+yr old car? Do you have to tell them what specific car you're getting or could you just say you're not sure yet, but that's the amount you need?

[FilingOnMyOwn]

Didn't we already discuss this in another thread?

Anyways, the type of loan you'd be getting for an older car would not actually be a used car loan. They might have a loan for classic or collector cars, but more likely it would just be a broader type of unsecured loan that would apply to things like motorcycles and other random types of vehicles. I had one for my motorcycle but I don't remember what the loan was called. Anyways, I don't think you're going to get a loan for this to be honest. You could maybe try capital one auto finance, they have a loan now for private party purchases where you loan at least 7,500 and they send you the check. And I recommend a private seller because you don't want to buy a used car like that from a dealer.

[littlejuanito]

They might have a loan for classic or collector cars, but more likely it would just be a broader type of unsecured loan that would apply to things like motorcycles and other random types of vehicles....I don't think you're going to get a loan for this to be honest. You could maybe try capital one auto finance, they have a loan now for private party purchases where you loan at least 7,500 and they send you the check.

Should I apply for a personal loan instead or try to see what's in my wallet with Cap One?

[FilingOnMyOwn]

I can tell you with most certainty you will not be approved for this personal loan. I would try capital one. If they don't approve you, chances are you won't get approved by any credit unions. And I really do not recommend getting this type of vehicle from a dealer, you will pay ridiculous interest on top of a high price for a car that you have no idea where its been.