IN THE current climate, it can be difficult to get credit for the things in life we need – that is why Letterkenny Credit Union is on hand to help.
A car loan from your local credit union is straight-forward. You borrow the money from the credit union, you pay for the car and you own the car immediately. You agree a repayment schedule with the credit union. Interest is charged on the reducing balance of the loan.
Unlike many car finance deals available today, which are actually Hire Purchase Agreements, arranging your car loan through Letterkenny Credit Union means that you own the car from the outset – You do not own the car through a Hire Purchase Agreement until the last instalment. Nor are there any balloon payments, admin charges or hidden fees. A car loan with your Credit Union is just that – a loan, no gimmicks.
Should you be in the happy position of being able to repay the loan early, you may do so without any penalty charges.
Mr Gordon Randles, Manager, Letterkenny Credit Union said: “People in the Letterkenny area are still buying cars but are shopping around for better value in the car financing deal. Letterkenny Credit Union are lending to their members and we would encourage anyone who is considering buying a new or used car in 2015 to visit their local credit union to discuss what options are available to them.
“Having arranged finance with the credit union in advance of going shopping for a car puts you in a stronger position. It helps to know exactly how much you have to spend and because you are not going cap-in-hand to the dealer, you are effectively a cash buyer and you may be able to negotiate a better deal.”
What makes a car loan different at your credit union?
Unlike a Hire Purchase Agreement you own the car from the outset.
There are no hidden fees or transaction charges.
Credit union interest rates are fair and reasonable and capped by law.
Repayments are calculated on your reducing balance, so you pay less interest with each repayment.
Your credit union loan is insured in the event of your death – subject to terms and conditions – at no direct cost to you. Other lenders charge for this.
You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty. Other lenders may charge you extra for paying them back faster!
How the Credit Union assesses loan applications
Your credit union encourages you to manage your money carefully by structuring loans around your needs and your ability to repay. So, whatever you’re borrowing for — a car, home improvements, a special occasion, holiday, school or college fees — your place will give you a fair deal.
The credit union assesses each application on an individual basis. They look at a members savings and loans history with the credit union. They review members bank statements and proof of income. They look at your capacity to repay the loan and they also carry out a credit check to review the members repayment history elsewhere.
As a general guide if you haven’t borrowed with us recently or are new to the credit union, you should establish 3 months of regular weekly savings before applying for a loan.
When applying for a loan members must initially supply
Fully completed loan application form
3 months current bank statements
Proof of income
Statements of other debts
Proof of address
For further details call us today or go online 0749124166 or www.letterkennycu.ie