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Security Service Federal Credit Union Auto Loan Review

A Security Service Federal Credit Union auto loan could be a good option thanks to its competitive rates. But you’ll need to meet certain membership requirements in order to take advantage of them. The main way to qualify is by living, working, attending school or having some other qualifying connection to Texas, Colorado or Utah, so these loans are not easily available nationwide.

How do Security Service Federal Credit Union auto loans work?

  • APR range: 3.44%–18.00%
  • Loan amounts: $10,000 - $125,000
  • Terms: 7–84 months

Security Service Federal Credit Union offers both new and used auto financing as well as refinancing, with the best rates going to those with the newest cars. Some auto lenders restrict the lowest rates to the current or previous model year, but Security Service Federal Credit Union  includes model years 2015 to 2020. APRs are higher for older cars, especially for vehicles over 100,000 miles.

Interest rates also depend on your location.

Enter your ZIP code on the Security Service Federal Credit Union website to view rates for your area. As of March 30, 2020, customers in San Antonio and Austin, Texas; Colorado and Utah, for example, were quoted lower rates versus those in Rio Grande Valley, Coastal Bend and El Paso, Texas.

Credit requirements

Other factors that could impact your loan APR include your credit score, loan amount and whether you make a down payment. To receive the best Security Service Federal Credit Union auto loan rates, you need a credit score of at least 740.

In addition to car and truck loans, Security Service Federal Credit Union also offers vehicle loans for:

  • Boats
  • RVs
  • Motorcycles

Security Service Federal Credit Union calculators

To help with your research, the Security Service Federal Credit Union website offers a number of calculators covering topics like estimating your vehicle payment, comparing two vehicle loans and seeing how much you’d save on gas with a fuel-efficient vehicle. 

Membership requirements

It’s possible to apply for a Security Service Federal Credit Union auto loan even if you aren’t a member yet. If you qualify for an auto loan and are happy with the terms, you can then join the credit union to complete your application.

You may be eligible for membership if you:

  • Live, work, worship, attend school, volunteer or have a business in Texas, Colorado or Utah.
  • Belong to certain military branches/units or work at certain military installations.
  • Have a family or household member who has already joined Security Service Federal Credit Union.
  • Work for or are a board member of Security Service Federal Credit Union.

Even if it doesn’t seem like you could qualify for membership, call the Security Service Federal Credit Union auto loan phone number, 800-435-5255, to confirm.

As part of joining the Security Service Federal Credit Union, you’ll need to open its Basic Savings Account with a minimum deposit of at least $5. There’s no monthly fee if you keep at least $100 in the account.

How to apply

You can apply for a Security Service Federal Credit Union auto loan online, over the phone or at one of its branches. Keep in mind this involves a hard credit pull since you’ll be asked to provide certain personal and work information including your:

  • Address
  • Date of birth
  • Social Security and driver’s license numbers
  • Job details, including income

You will also need to specify what type of loan you’d like:

  • Purchase
  • Refinance
  • Lease buyout

After you apply online, you’ll receive a phone number you can call to find out the credit union’s decision along with the loan terms if you qualify. You can also ask the credit union to text you the decision. It typically takes a few business hours to receive the initial decision.

Preapprovals

Security Service Federal Credit Union offers loan preapproval so you can see how much you could borrow before visiting dealerships. Not only can you finance a car through Security Service Federal Credit Union, you can shop for the car itself: browse listings, find the car you want and apply for loan preapproval before visiting the dealership.

Or, you could apply for Security Service Federal Credit Union financing at a dealership. It provides a list of trusted local dealerships who can set up these auto loans quickly.

Pros and cons of Security Service Federal Credit Union auto loans

Pros

  • Decent rates: Security Service Federal Credit Union offers rates as low as 3.44% for those with strong credit. At other lenders, borrowers with excellent credit scores pay on average 5.66%, so you can potentially get a much better deal here though we’ve seen even lower rates at other credit unions.
  • Contacts with local car dealerships: Security Service Federal Credit Union has partnerships with auto dealerships throughout Texas, Colorado and Utah that could quickly process its loans. Or better yet, through its website, you can get preapproved online even before hitting the lot.
  • Used-car buyer friendly: It’s possible to finance cars older than years and to buy a used car from a private seller. One downside: you’ll have to borrow at least $10,000, which could rule out an inexpensive used vehicle.

Cons

  • Rates vary by location: Security Service Federal Credit Union charges significantly higher starting rates in parts of Texas, 4.24%, as of March 30, 2020.
  • Membership required: The primary way to qualify is by living, working, worshipping, volunteering or going to school in Texas, Colorado or Utah.

How to pay your Security Service Federal Credit Union auto loan

If you decide to use its vehicle financing, there are a number of Security Service Federal Credit Union auto loan payment options:

  • Online
  • By phone: 800-527-7328
  • Through its network of ATMs and local branches
  • By mail – In the memo line, write Principal Payment and send to:

Security Service Federal Credit Union
Deposits/Payments
P.O. Box 691530
San Antonio, TX 78269-1530

To register for online payments, you’ll need the account number from your membership card. If you just joined, it can take seven to 10 business days to receive this card in the mail. Once you register, you can also set up recurring payments so you don’t miss the deadlines.

Grace period

If you miss a Security Service Federal Credit Union auto loan payment, it does offer a grace period of 10 business days to catch up. But if you still haven’t paid by then, it charges a 5% penalty on the late payment and could report the action to the credit bureaus.

Payoff

If you pay off your Security Service Federal Credit Union ahead of schedule, it does not charge a prepayment penalty. To see how much you still owe to complete your Security Service Federal Credit Union auto loan payoff, you can log into your online banking account, visit a branch or call them at 800-880-8212.

Who is a Security Service Federal Credit Union auto loan best for?

If you live in Texas, Colorado or Utah, or you qualify for membership at Security Service Federal Credit Union in some other way, it could be worth applying for one of its auto loans. Loan rates are competitive and lower than the national average, especially if you live in Colorado, Utah or San Antonio or Austin, Texas. It’s also quick and free to apply for a Security Service Federal Credit Union auto loan online.

But even though Security Service Federal Credit Union offers competitive rates, there are other credit unions out there that can offer even better deals. To find your best terms for your auto loans, it pays to price shop. So while Security Service Federal Credit Union should be a name on your list, it shouldn’t be the only name on your list.

 

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