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The loan application process is complex, whether it’s done through a credit union for a new vehicle loan or a bank for a personal loan. To improve your chances of getting approved, there are some steps you should always take—and others you should avoid. Here, Estacado Federal Credit Union in Hobbs and Lovington, explains what you should and shouldn’t do from the time you apply to the moment the loan is approved.

A Credit Union’s Tips for the Loan Process

1. Don’t Close or Open New Lines of Credit

Because your potential lender will be checking your credit history, it pays to remain consistent. Opening or closing credits cards will affect your overall credit lines, which can negatively impact credit scores and put approval at risk.

2. Do Keep Your Spending Patterns Consistent

credit unionYour entire financial picture will be assessed during this time. This means, all of your spending patterns should appear normal. Don’t lease a new car or make any big purchases during the application period, as they could have a negative impact on the credit union’s decision. 

3. Don’t Transfer Funds Between Accounts

While this may seem trivial, try not to transfer funds between accounts during this time. The goal is to keep your financial picture as consistent and reliable as possible—and any big withdrawals or deposits could serve as red flags to lenders. 

4. Do Pay Everything on Time

Since your credit score plays such a huge role in the loan process, it’s important to uphold it. Missed payments can drastically decrease your score, and it may take months to restore. Double-check that all of your payments will go through on-time before applying. 

5. Don’t Switch Jobs During the Process

If possible, try not to change jobs when applying for a loan, as income is closely inspected during the approval process. Make sure your income has been consistent for the past few months so you can accurately display what you make.

If you’re facing an unexpected expense or searching for a new truck financing, visit the trusted team at Estacado Federal Credit Union. For more than 65 years, the team has been helping the community with everything from general financial services to car and personal loans—so you can rest easy knowing you’re working with an experienced credit union. To learn more about the loan approval process, visit their website or email questions to loans@estacadofcu.com or call (575) 393-1596 to talk with a Loan Officer today. 

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