When shopping for auto refinance loans, most people head to banks first. However, credit unions are an underrated option for your financing needs – provided you meet their criteria. Digital Federal Credit Union (DCU Auto Refinance) is one of the largest credit unions in the country and can help auto owners save money when refinancing.
Based in Marlborough, Massachusetts, DCU provides direct loans and auto refinance for eligible borrowers. Compared to other lenders, DCU auto refinance has more flexibility and offer better rates to customers in all 50 states. The only issue is that you need a membership with a credit union to apply.
In this DCU auto refinance review, the Refinance Team at Way.com breaks down the benefits of refinancing at a credit union like DCU. As always, there will be some drawbacks – but you get to make an informed decision at the end of this review!
A credit union is an institution that offers financial products to everyone who is a member. DCU offers auto loans for new and used car purchases, lease buyouts, and auto refinancing.
Borrowers who choose DCU can access lower rates and higher loan amounts for auto refinancing, and can also refinance existing DCU loans. Besides, they can pre-qualify through a soft credit check and compare different refinancing offers. All this puts more choice in the hands of the borrower.
Here’s a quick look at the main pros and cons of DCU auto refinance.
|Has a soft credit inquiry process for DCU auto refinance pre-approval||Minimum credit score not disclosed|
|Low APRs starting from 1.49%||Credit union membership is needed to apply|
|Refinances existing DCU auto loans||The minimum refinance loan term with DCU is 36 months|
|Co-signers and co-borrowers allowed||Late payment fees applicable|
|Have automatic payment options (with discounts for choosing autopay)||Longer processing time for funding; approval may take up to 2 business days|
|Available in all 50 states||Need to share Social Security Number during initial application|
|Offers hardship plans for borrowers with poor credit|
|100% online process|
|24-hour customer support|
*As of January 2022
DCU Auto refinance rates are a good bet for customers who:
Here’s a detailed look at the prominent features of the DCU Auto refinance process.
Before applying for DCU auto refinance, check the table below to see if you meet all the requirements.
|Minimum Age||18 and above|
|DCU auto refinance credit Score Range||Not disclosed|
|Loan Payoff amount||$5000 - $500,000|
|Credit Union Membership||Required|
|Refinance Administrative fees||Only for refinancing existing DCU loans|
|State restrictions||None. Available in all 50 states.|
U.S. Permanent Resident
|Documents Required for verification||
Recent pay slips / income proof
Proof of insurance
Proof of residence
*As of January 2022
As the first step, use the DCU auto refinance calculator to check whether you can find an optimum interest rate for your monthly payments. Once you get an idea of what amounts you may pay, apply to pre-qualify with DCU by inputting your basic details and personal information.
The pre-qualification involves a soft credit check which will not affect your credit score.
You will get multiple DCU offers, from which you can choose one. Once you choose an offer, a hard credit inquiry will be initiated. You can use the co-borrowing, co-signing, and automatic payment features to get preferential rates for refinancing.
Once you send in your supporting documents, you can sign the final deal and set a date to receive funding. Remember that you can also use the cash-out refinancing option to get up to 120% of the vehicle's resale value as a loan.
If you already are a credit union member, we’d highly recommend checking out DCU Auto Refinance and going through the pre-qualification process. The APRs are generally on the lower side for those who qualify, and along with the automatic payment rate discounts can save you a lot of money.
DCU also has an A+ rating with the Better Business Bureau (BBB). The only delays that customers face have been during the documentation process. Some customer feedback mentioned issues in the finalization of the refinance deal, but were happy that the 24-hour customer support team were responsive and efficient.
Overall, DCU Auto Refinance is a worthwhile option to explore for those looking to refinance at competitive rates.
The auto refinance rates published here are based on the results of comparative research done by Way.com’s data team. We've used a mix of public and internal data to analyze refinance rates across thousands of lenders, credit scores, vehicle types, and all U.S. ZIP codes
The rates shown here are based on a national average of our findings, and may typically vary for each individual depending on your personal financial position and the US state you are in.
However, you can quickly determine where you stand by going through our Auto Refinance form. In just a few steps, find out how much you can save with way.com!
The official mailing address of DCU is 220 Donald Lynch Boulevard, Marlborough, MA.
You can reach out to the DCU auto refinance customer support team at 800-328-8797 on weekdays between 8 a.m. and 9 p.m., and on Saturdays between 9 a.m. to 3 p.m.
Yes, DCU Auto refinance also offers cash-out refinancing.
DCU offers fixed APRs for car refinancing starting from 1.49%..
Yes, DCU charges late fees up to 4% of the amount due.
Yes, DCU reports account activity to Equifax.