 TITLE: How to Get a Used Car Loan CONTENT: Used Car Loans From a Bank or Credit Union\n------------------------------------------\nBefore you start shopping for a used car, it's a good idea to get preapproved for an auto loan from a bank or credit union. If you know what kind of car you want, use online resources such as Edmunds or Kelley Blue Book to research average costs. With a price range in mind, you can tell the lender how much you want to borrow.\nAfter the lender reviews your preliminary application, they'll tell you how much you can borrow and the interest rate they're likely to offer. This isn't a firm guarantee, but it gives you a good idea of how much a loan will cost you and makes it easier to negotiate with the dealer. A loan preapproval results in a soft inquiry on your credit report, which does not affect credit scores.\nBanks may be the first place you think of for getting a used car loan. But if you belong to a credit union, are new to credit or have fair to poor credit, there could be advantages to applying for a loan at a credit union instead.\n*   You may have a better chance of being approved for a loan. Credit unions are community-focused and smaller than many banks, so they take a more personal approach and are typically more understanding than banks if you have less-than-perfect credit or a limited credit history.\n*   Credit unions often offer better interest rates than a bank or auto dealership. Because they're nonprofit organizations, credit unions can afford to make loans at lower rates than banks or dealerships, which need to make a profit.\n*   You might find it easier to get a small loan. Banks and car dealerships typically have minimum loan amounts, but many credit unions don't—or if they do, the minimums are quite low.\nTo apply for a used car loan with a credit union, you'll need to be a member, which usually involves opening an account and making a deposit. Keep in mind that credit unions usually offer fewer conveniences than traditional banks; for example, you might have to make your loan payments by mail instead of online.\nBoth banks and credit unions may set maximum limits on the age or mileage of the car you're borrowing money to buy. This can be a problem if you're looking to finance an older used car. END