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When you are going through your financial statements and are stopped by the credit scores, it certainly it changes your expression. Either it is very good score which gets reflected by your smile or it is a bad credit rating which draws a frown from you. The frown deepens if you were thinking of buying a car. In such case, get the assurance that you are not the only one in similar scenario. There are many people scouting for the appropriate solution for financing the car.
Bad credit auto loans are offered by many lenders and financial institutions. Some may be manufacturers or dealers, banks or credit unions, or private lenders. Among these various, lenders, credit unions have been doing a marvelous job. The credit unions are the financial institutions which are cooperative in nature and are controlled by its owners. The owners are usually the members of the corporations.
Difference: The traditional financial institutions are generally not much interested to forward a loan to a person who has bad credit history because they are considered risky, but this mindset is changing. There are banks, dealers and financial institutions that are willing to approve the loan even if you have poor credit. The main difference is the motive of these financers and that of the credit unions. These lenders work with a motive to earn profit; whereas the credit unions work to serve their members. The lenders charge a very high rate of interest but the credit unions charge reasonable interest rates because they provide the loan and other financial services to their members.
Popularity: The popularity gained by the credit unions over the last decade is due to the low interest rates and discounts offered by them. Even when you are surrounded by the various attractive offers, the advantages of the union is hard to ignore. The accessibility factor has also contributed to its growing image. You can seek information online or over the telephone. You can also walk to the nearest branch and talk to the representative of the credit union.
Availability: Availing a loan from a credit union is not difficult. You can get in touch with the credit union if you are an existing member of any of them. You can get your credit score verified from any of the professionals or credit bureaus or dealers. However, if you have gained a membership to the credit union, then seek the help of the experts of these unions. Their knowledge and professional services are of immense help in finding accuracy of the scores. It is important to know your financial standing accurately because it gives you the power of negotiation.
Procedure: The procedure to get the bad credit auto loan approved is marked with routine rounds of the union office. While the dealers and lenders can generally get you the loan approval within a day or two. The completion of all the procedures and formalities takes over a week or two. Therefore, you will need patience to deal with it.
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