Credit union car loans are best for all first time buyers of cars and in need of finance for a new vehicle purchase. Actually, credit unions are generally the best way, because they always offer best rates and terms to all first time users which cannot be get with other car financer.

Unluckily, not all first time users always qualify. There are some major key factors that credit unions judge in their car loan agreement process:

Credit ratings is depend upon four credit situations for first time, these are; First without collections no credit i.e. cell phone,  medical, judgments,  utility, tax liens, etc. Second, “absolute zero credit”, which must be not bad and not good credit. Third, with short history limited credit. One may have small credit cards or less than two years card history. Fourth, no prior auto loans may long history. One may have car loans in the past, but they must be older and never show on credit file.

It is not always needed to be a member in previous to approaching for a credit union car loan, but credit union has known to extend a little more for their existing members. The longer one has been a member, the more money in account for monthly activity which through regular weekly or monthly deposits, it all may help when making a decision.

Many first time car purchasers are able to get approval from a credit union car loans without down payment facility, but there are some other factors on which they look more closely. They positively help if one is able to show his commitment to car for huge down payment. Credit unions look a big amount of down payments as big bond. The more money you have spend up for upfront payment, the more you stuck, it is very tough for you to walk away from the car in the future.

Many credit union car loans always check your employment stability at least a minimum of 12 months on the job, generally with 18 months which they prefer. In many cases they consider how long you working, if one have multiple jobs over that time period.

Credit unions also check the capability to repay the car loan this is generally figured using a debt to income (DTI) ratio and payment to income (PTI) ratio.

It is also depends upon the age and km of the vehicle. Many times they never consider the age but they always look to the km of vehicle.

Not all of the things needed to meet in order to get approval for a first time buyer car loan, but the more is always better. One can lack in one or two areas, but make up for it in another area.