Valley Bank vs. Credit Direct: Which offers better auto loans?

Valley Bank vs. Credit Direct at a glance

Valley Bank and Credit Direct could be viable options for your next auto loan. Still, it’s worth comparing what each offers to determine the best fit.

Best for fast funding times

Valley Bank

Rating: 3.2 stars out of 5

3.2

Learn more in our Bankrate review

• Bankrate’s view

  Valley Bank offers new and used vehicle loans online and at its branches in Alabama, Florida, New Jersey and New York. It does not disclose its eligibility guidelines or loan amounts. So, applying is the only way to know if you’re a good fit.

  Its starting APR on new car loans is slightly higher than the national average. However, it is more than 2 percent higher than the average of 5.18 percent that those with excellent credit can expect. To get the 7.30 percent starting rate, you must fund an electric vehicle or hybrid and sign up for autopay using a Valley Bank account. Still, Valley Bank may be worth considering if you already have an account.

  Valley Bank features loan terms of up to 84 months to help make the monthly payments more affordable. But remember, an 84-month loan term means you’ll pay more in interest over the loan’s lifetime.

• Pros and cons

  

  Pros

  • In-person support: You can receive assistance and submit an application for an auto loan at a physical branch, which isn’t an option with Credit Direct.
  • Convenience: Unlike some brick-and-mortar banks, you also have the option to apply for financing online.
  • Rapid funding times: It’s also uncommon for traditional banks to offer same-day funding, but it’s a benefit borrowers enjoy at Valley Bank — and not one offered by Credit Direct.

  

  Cons

  • Limited online disclosures: Valley Bank does not disclose minimum and maximum loan amounts on its website.
  • Online prequalification unavailable: You must apply and undergo a hard credit check to view loan offers.
  • Only available in select states: Auto loans are unavailable to borrowers outside of Alabama, Florida, New Jersey and New York.

Best for unsecured auto loans

Credit Direct

Rating: 4 stars out of 5

4

Learn more in our Bankrate review

• Bankrate’s view

  Credit Direct helps take the legwork out of finding the right loan for your next vehicle purchase. Both a direct lender and a loan marketplace, Credit Direct lets you compare loan offers on its website. You can get prequalified with a soft inquiry that won’t impact your credit score, which isn’t an option with Valley Bank.

  Another perk of doing business with a lender in the Credit Direct network is the ability to access small loan amounts. Many lenders set a loan minimum of $5,000 or more, which isn’t ideal for a borrower looking to finance an inexpensive used vehicle.

  Unlike a traditional auto loan, which is secured by the vehicle itself, Credit Direct offers unsecured loans that don’t require collateral.

• Pros and cons

  

  Pros

  • Online prequalification: You can view potential loan offers without negatively impacting your credit score.
  • Low minimum loan amounts: The minimum loan amount of $1,000 is ideal if you only need to borrow a small amount for your first or next vehicle purchase.
  • Flexible eligibility guidelines: Credit Direct’s website states that you can get approved even if your credit score is between 500 and 600 — but you may face a maximum rate of nearly 30 percent.

  

  Cons

  • Extensive documentation requirements: You’ll need your most recent W2, a month of pay stubs and your two most recent bank statements to apply for an auto loan.
  • Limited availability: CreditDirect only operates in 14 states. That’s more than Valley Bank but less than many other online marketplaces.
  • Smaller loan limits: The current average new car price is over $48,000, but auto loans with Credit Direct are limited to $40,000. You may need a sizeable down payment if you’re planning on buying a new or luxury vehicle with a Credit Direct loan.

How to choose between Valley Bank and Credit Direct

Credit Direct offers financing through personal loans, so it could be the best option if you want to own your vehicle outright. Valley Banks offers quick funding and more discounts — provided you live in a state where it operates.

Choose Valley Bank for fast funding

Valley Bank can fund your auto loan the same business day following approval. You’ll have to wait 48 to 72 hours with Credit Direct for funding.

This lender also wins in the support category. Customer service is only available virtually with Credit Direct since it’s an online loan marketplace. Valley Bank offers more than 200 locations in four states to serve you if you prefer to speak with someone in person.

Choose Credit Direct for rate shopping

If Valley Bank offers you an auto loan, there’s no way to know if it’s your best deal without also applying elsewhere. However, allowing Credit Direct to shop your information around means you could save in interest. Accessing potential loan offers doesn’t take much time, and there’s no harm to your credit score.

You can apply with a co-borrower if you have a lower credit score to increase your approval odds. And even if you don’t have a co-borrower, you may qualify for a loan with bad credit since some lending partners look beyond credit scores to make decisions.

Compare more lenders before applying

When financing your next ride, Valley Bank can get you approved and funded quickly. However, Credit Direct could be better if you have bad credit and want a lender with flexible eligibility guidelines.

Despite its limited maximum loan amount and slower funding times, you can shop around for a better deal and compare loan offers in one sitting. But if you want the in-person experience only brick-and-mortar banks offer, Valley Bank is best. Before applying with either, explore loan offers with other lenders.