SAN DIEGO–Mission Federal Credit Union is offering members with qualifying auto loans a reduced interest rate of up to 3% through its “Rate Break” program.
The credit union said it developed the program so that members who initially qualified for a higher auto loan rate would have the opportunity to reduce their rate by making on-time payments.
“We understand that life doesn’t always go exactly as planned, and that can affect your financial life—including the interest rate on your auto loan,” said Sherry Special, SVP consumer lending and branch network, in a statement. “We created the Rate Break Program to give consumers with lower credit scores a better option and help them save money. First, we offer rates that are already very competitive on qualifying auto loans—and then we reduce the rate if they make their payments on time.”
According to Mission Federal, with the Rate Break program, Mission Fed rewards on-time auto loan payments by reviewing the loan every six months and lowering the interest rate by 1% off the current interest rate after each six-month period that the loan is paid on time and meets other criteria. The Rate Break program could lower the interest rate on a Mission Fed auto loan by a maximum of 3% after 18 months, the credit union said. Lower interest rates not only mean a lower monthly payment, but also reduce the total loan amount and save consumers money each month for the duration of the loan.
“The Rate Break Program is a reflection of the credit union’s approach to doing business: people helping people,” Special said.