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Accessible Financial Services

Non-Prime Auto Loans

Having reliable transportation allows for increased access to employment, housing, and education. However, many credit challenged consumers lack reliable transportation. The National Credit Union Foundation's Non-Prime Auto Loan program helps lenders offer and manage fairly-priced non-prime auto loans to consumers.

Contact Adam Lee, incubator director, to learn more or let us know you're intrested in implementing this product.

Final Results

During the incubator's 18-month reporting period, ten credit unions closed 7,605 loans for over $102M. The Average loan per borrower was $12,136 and the average interest rate was 11.7%. Also, the average age of the borrowers was 36 years old with an average income of $42,418 and an average credit score of 584.

Dave Prosser – Vice President of Community Development – Freedom First CU:

“More than half the people participating in the Responsible Rides program are single parents, many of them juggling getting to work, getting to the grocery store and getting kids to and from school and daycare safely while relying on the bus or on aging cars that don’t always start when you turn the key. If you can’t get to your work, how are you going to work?”

Responsible Rides, though, isn’t a charity. It is a business that makes money for Freedom First - lending to people who work hard and can be trusted to repay their debt.”

Member Testimonials:

  • “This loan improved my credit, self esteem, and now I want to have all my money deposited in the credit union.”
  • “It helped save my job considering it involves a lot of driving. Also, I was educated on the facts about purchasing and financing, more than any other financial institution has ever done for me.”
  • “It was good in many ways, including being able to raise my credit and put clothes on my kids’ back.”

For more details and testimonials please see the Final Summary Report found in the Resources section.

Non-Prime Auto Loans was selected to move into the marketplace phase of the Incubator. To learn more about subsequent efforts to broaden awareness and use of the product, visit the Accessible Financial Services Incubator page.