Indiana Members Credit Union Blog
What is Too High an Interest Rate for a Car?
Is It a Good Idea to Refinance a Car Loan Right Now?
Here at Indiana Members Credit Union, we get a lot of questions about auto loans, and refinancing auto loans is one of the most popular topics our advisors are asked about.
At a high level, the process of refinancing an auto loan basically entails replacing your current loan with a new loan with terms that better fit your current situation. Another way to think about it is that you’re shopping around for a new loan to pay off what’s left on your current loan. In this blog, we’ll answer some of the key questions, so you can better understand when the right time might be for you to think about refinancing.
Does Refinancing a Car Hurt Your Credit?
Yes, refinancing your car will lower your credit score. But this ding to your credit score is temporary, while the change in your auto loan’s interest rate will be permanent! In some cases, refinancing auto loans can even put cash in your pocket. In this blog, Indiana Members Credit Union is covering all your frequently asked questions about auto loan refinancing so you can make the decision which is in your best interest long-term.
When Should You Refinance a Car Loan
If you’ve purchased a new car or truck within the past few years, there’s a decent chance that you could see your payments reduced through the process of refinancing. While they’re not as sizable as most home loans, many auto loans are still great candidates for refinancing. Unfortunately, many borrowers simply aren’t aware of this option or how it can help them.
Why is it Important to be Pre-Approved Regardless of Credit Score Before Shopping?
Is It Better to Get a Loan Through a Credit Union?
As people begin their search for a loan that best meets their needs, they often ask, “Is it better to use a bank or credit union?” Generally, it is more beneficial to pursue a loan with a credit union instead of a bank. Although other financial institutions do serve a purpose, credit unions offer significant advantages such as:
- Higher savings
- Lower fees
- Individualized and hands-on customer service
- Local expertise
- Lower overall loan rates
Consumer Financial Protection Bureau FraudScammers are using Consumer Financial Protection Bureau (CFPB) employee’s names and imagery to try and steal money. The CFPB has heard from victims, specifically older adults, who were defrauded thousands of dollars from scammers pretending to be with the CFPB. It is recommended that if someone contacts you and says that you have won a class-action lawsuit in a foreign country, or can receive other large, unexpected amounts of money, but must use the CFPB’s assistance to claim the funds, they are lying.
Should I get Pre Approved Before Looking for a Car?
Is Pre-Approval for an Auto Loan a Hard Inquiry?
Most of us don’t have piles of cash sitting around to use for an outright, point-of-sale car or truck purchase—especially when you consider that the average price of a new car exceeds $36,000. That’s why over 85% of new car purchases involve auto loans. The average amount of these loans? Around $26,000.
Now, not all auto loans are the same. Neither are all potential borrowers or lenders. Luckily, there are ways you, as a hopeful borrower, can help improve your chances of securing the loan you need with terms you can live with. One such way to reduce the anxiety before you head out to the lot is through pre-approval for auto loans.
What Score Do Credit Unions Use for Auto Loans?
Credit Unions use your credit score as a factor for deciding whether or not you qualify for an auto loan and what your interest rate will be. When applying for auto loans, you’ll be required to disclose personal information, your employment history, and other financial information. Out of these requirements, your credit score can often be the most impactful— and elusive. It’s not something that you can always track in real-time, and there are many different score providers that can give conflicting credit reports.In this blog, we’ll take a closer look at how credit unions obtain and weigh your credit score and what that means for your car buying experience.
Making A Career Change? Consider IMCU
Indiana Members Credit Union (IMCU) is a great place to work, comprised of leadership that fosters a culture dedicated to creative financial processes, enhancing member service, employee success and community involvement. IMCU prides itself on promoting a family-like atmosphere, both for those that work at IMCU and in service to our membership. Our employees enjoy excellent benefits, a generous paid time off plan, bonus opportunities, tuition reimbursement assistance and opportunity for growth and advancement through our many employee-focused initiatives.In addition, IMCU offers our employees the opportunity to give back to the community. Through our foundation, created in 2010, IMCU employees are encouraged to volunteer and support the communities in which we serve.
What is a Good Interest Rate on a Car Loan?
Reliable transportation is a top priority for most people. Whether it’s simply getting from point A to point B, commuting for work, dropping kids off at school, or just shopping for groceries, a reliable car is a necessity for many Americans. In fact, there are over 280 million cars registered in the United States.
You would think with that many vehicles, the car buying process would be completely optimized and hassle-free by now. In reality, buying a car can still be quite stressful. One of the biggest factors to consider when buying a new or used car is how you plan to pay for it. For many people, an upfront cash offer isn’t always the most feasible strategy. That’s where auto loans come into play.
Do Car Dealers Prefer You Finance?
Are You Looking For A New Job? Sometimes This Leads to Scammers Looking For You Too.
Are You the Target of a Scam?
Keeping your home updated makes money sense
Know The Warning Signs of Fraud
Each year millions of reports about fraud are filed and victims lose billions of dollars because of these crimes. With fraud continuing to become more rampant, it is essential to stay informed and take actions to protect yourself and your family against fraud and scams. Many of these scams have been around for years so let’s point out some common warning signs that you might be dealing with fraud.
1. There is a prize involved.
You get notified that you’ve won a lottery or contest and are told to claim your prize. Oftentimes, you must first pay a fee to claim this prize.
Member Fraud Alert
Please be aware of two fraud schemes that are currently very active with our membership. We are receiving reports that members are receiving a spoofed number from our Member Services department along with a fraudulent text alert attempting to verify a transaction (that you likely didn’t do) and then asking you to verify a portion of your debit card number. These calls and texts are not from Indiana Members Credit Union. Please do not provide any account or card information to anyone contacting you.
Start Your Home Shopping Here
It’s that time of year when many people throughout Indiana are thinking about buying new homes. Whether you’re a first-time buyer or you’re getting ready to switch from your current home to one that better fits your needs, the smart way to start your home-buying journey is to talk with one of Indiana Members Credit Union’s mortgage experts.