Credit Union vs regular banks!! which one would you prefer??/

[milko]

I understand that if you request any type of loan at CU, It would be lower APR, and even better, fixed APR than regular banks (all depends on your credit score), but, should I enroll with CU banks, in order to get an auto loan with 676 credit score (all three credits bureau) or should I apply for a loan in regular banks??.

I'm a new Immigrant in the USA since april 2011. In july, I applied for a credit card loan (Gas card in VA), they got me approved with 500.00 credit limit with 19.99% variable interest rate, after I showed them proof of income and savings account in Bank of A (1600.00) and proof of employment (30000.00 calculated yearly income),they asked me for the last 3 pay stubs.

It's been 5 month since I opened a new credit card, utilizing 30% of my credit limit religiously for 5 conseccutive month, which I got surprised when I got 676 credit score, also, I realized that i have a poor credit history since I recently started with this new credit card, just because my credit history doesn't have enough madurity.

I really need to get an auto loan, to finance the car that I want!! Is there anybody in this forum that I can be advised from??? Should I wait for it a couple of years, in that way, my credit history and its utilization gain more experience???
any advice will be wellcomed.... thank you all!!

[Joeyman]

I really need to get an auto loan, to finance the car that I want!! Is there anybody in this forum that I can be advised from??? Should I wait for it a couple of years, in that way, my credit history and its utilization gain more experience???
any advice will be wellcomed.... thank you all!!

I think working with a credit union is the right way. Your credit score really isn't all that bad, however as you indicated, you're lacking length of credit history. Perhaps the next step is switching to a credit union for your checking, savings, etc. and during the same encounter ask for a credit card as well. They can use the same credit pull from your initial checking / savings inquire for the credit card. After doing all this, let everything age for at least six months, and followup with your credit union about the auto loan. The credit union will benefit from the six months; they'll take into consideration direct deposits, how you handle cash, etc.. All this will help you get the loan later.

Another thing to remember, don't overload yourself with a high car payment and be strapped for cash. With about $35k income per year, I could see the credit union offering somewhere around $9,000 and the APR around 6%. A down payment is also impressive.

[milko]

Thank You for your advise.. I'll always be aware of balancing my income with my expenses, You are right.. I'm thinking to get a car loan later on with the amount of 4000 to 6000 dollars value, also, with 2 to 3 years loan, for the purpose of establishing good credit, and have different kind of credit in good shape and well-managed, otherwise I would have looked for car directly by car owners.

[Joeyman]

Thank You for your advise.. I'll always be aware of balancing my income with my expenses, You are right.. I'm thinking to get a car loan later on with the amount of 4000 to 6000 dollars value, also, with 2 to 3 years loan, for the purpose of establishing good credit, and have different kind of credit in good shape and well-managed, otherwise I would have looked for car directly by car owners.

I think switching to a credit union now is a good idea. Not to mention, credit unions are not-for-profit.

Good luck.

[milko]

Non-profit?? that's better!, I might open a new account with CU bank pretty soon, meanwhile, I will keep the other one for a few weeks, for the purpose of doing my transactions actively, for example: pay rent, my every day expenses that I left over, however, my future new CU account will be my best bet. I think CU banks are the best to deal with, in case of any type of loan you will need in the future, eventhough, the other regular bank does an excellent service, they are practicing a profitable financial service while in the other hand, you have a non-profit service that it's convenient for you.
I have to say that this website is really illustrative and thanks for the reply.

[Joeyman]

meanwhile, I will keep the other one for a few weeks, for the purpose of doing my transactions actively, for example: pay rent, my every day expenses that I left over

As a credit union enthusiast I have to say NO! Switch right away! Big banks are killing this country. However, this gets political so don't take my opinion so seriously.

Cheers!

[milko]

As a credit union enthusiast I have to say NO! Switch right away! Big banks are killing this country. However, this gets political so don't take my opinion so seriously.

Cheers!

I really take seriously my future finances, everybody's opinion in this forum helps a lot, to figure out which one is the best route to go for, I should say that's a given!! what you are a CU esthusiast for!!!


I will be pretty soon!!

[Nuovocapitolo]

CU....switched last week. got a credit card @9.9 fixed and a car loan at 3.67......they won my business with those two items....along with free checking and bill pay.

[SAR1954]

I have been banking at a major national bank for the past 15 years, once a credit union for a real short stint. Recently I have heard a lot of great perks and benefits (well for many years I have heard this) of banking with a credit union so I decided to finally look into it. I called one of the local credit unions in my area and got a personal loan and refinanced my car for 6%. So, I am working to transfer all of my banking to this credit union in the next couple of months. I will probably keep on bank account with my national bank, as it will help when I travel out of town should I need to access cash and I won’t have to worry about ATM fees. I recommend people doing what works for them, but I have to say I am glad I made the decision to finally look into a credit union. When I went to this bank to close out the majority of my accounts, I received no questions as to why or concern. That was just another reason to confirm what I was doing was the right choice.

[kalamazoo2714]

I have been banking at a major national bank for the past 15 years, once a credit union for a real short stint. Recently I have heard a lot of great perks and benefits (well for many years I have heard this) of banking with a credit union so I decided to finally look into it. I called one of the local credit unions in my area and got a personal loan and refinanced my car for 6%. So, I am working to transfer all of my banking to this credit union in the next couple of months. I will probably keep on bank account with my national bank, as it will help when I travel out of town should I need to access cash and I won’t have to worry about ATM fees. I recommend people doing what works for them, but I have to say I am glad I made the decision to finally look into a credit union. When I went to this bank to close out the majority of my accounts, I received no questions as to why or concern. That was just another reason to confirm what I was doing was the right choice.

Actually you can avoid Atm fees and still belong to a credit union. 99% of credit unions belong to both the credit union Coop network a national network of atms and the credit union service centers. The coop atm network you can go to any atm in the country that is a coop member and pay no fees. The credit union service centers even if you are out of state you can walk into a shared service center and make a deposit or withdraw just as if you were at your local credit union. Some credit unions charge to use service center but most don't. No fee for coop network There is both a coop atm app and service center app on the IPhone.