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How lenient is a CU?

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How lenient is a CU?

Some people on here recommend going through a CU for an auto loan. Are they going to be more lenient as far as bad credit is concerned, than a traditional auto lender? My employer is affiliated with one. Will that help with getting approved? If I offer to have the loan payment deducted from my paychecks so they are guarenteed to get it on time will that secure me a lower interest rate? Thanks!
Message 1 of 8
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Contributor

Re: How lenient is a CU?



Courtney_scott wrote:
Some people on here recommend going through a CU for an auto loan. Are they going to be more lenient as far as bad credit is concerned, than a traditional auto lender? My employer is affiliated with one. Will that help with getting approved? If I offer to have the loan payment deducted from my paychecks so they are guarenteed to get it on time will that secure me a lower interest rate? Thanks!


I just called one regarding a motorcycle loan. They told me even with 550 score, they will approve for a loan for 16%.
 
Not sure how they deal with open collections or BK.
Message 2 of 8
Regular Contributor

Re: How lenient is a CU?

In my experience, CUs will be more lenient when it comes to low scores, but less lenient when it comes to outstanding debt.

Starting Score: 556
Current Score: 672, 681, 692
Goal Score: 700, 700, 700


Take the myFICO Fitness Challenge
Message 3 of 8
Established Contributor

Re: How lenient is a CU?

I went to my CU today assuming that I would have to beg.
 
Approved in less than 60 seconds of submission of the loan request.
 
They only pull TU, which was 678 according to myFICO this morning.  The CU told me that they saw 690.  Got the lowest IR for a "used" car (2 years old, 28k miles) on a 36 month loan which I will pay off in less than 30 months.  Plus, instant approval for an unsecured 5k visa that takes on the history of my secured card!  Sure, it's only 4 months history but I'll take what I can get.
 
Are they more lenient?  I don't know.  I do know that I have only been banking with them for 4 months but have made a huge effort to establish a personal relationship with the folks at the CU.
 
They still won't give me a "Casual Friday" hat that they all wear.  I'll wear them down (grin).....
 
atlast....
 
 
Ficos 2/17/08: TU 551 EQ 534 EX 587
Ficos 2/12/09 TU 695 EQ 715 EX 715
Fico...4/15/10....drumroll.....EQ 743
Message 4 of 8
Established Member

Re: How lenient is a CU?

I have no outstanding debt, and my score pulled by my credit union was 592. All other banks denied me but they approved me for an auto loan (60 months, $11,500, 13%). Decent rate considering the baddies on my score and i can refi in a year Smiley Happy I had a great experience and would highly recommend checking out a credit union for an auto loan.
4/24/08 - EQ. 480 TU. 516 EX. 523
5/13/08 - EQ. 511 TU. 592 EX. 597
Message 5 of 8
Contributor

Re: How lenient is a CU?

My cu approved me recently with one paid collection.  They pulled experian.  My interest rate is 4.49%.  Needless to say, I am very happy.
Message 6 of 8
Moderator Emeritus

Re: How lenient is a CU?



atlastontheroad wrote:
I went to my CU today assuming that I would have to beg.
 
Approved in less than 60 seconds of submission of the loan request.
 
They only pull TU, which was 678 according to myFICO this morning.  The CU told me that they saw 690.  Got the lowest IR for a "used" car (2 years old, 28k miles) on a 36 month loan which I will pay off in less than 30 months.  Plus, instant approval for an unsecured 5k visa that takes on the history of my secured card!  Sure, it's only 4 months history but I'll take what I can get.
 
Are they more lenient?  I don't know.  I do know that I have only been banking with them for 4 months but have made a huge effort to establish a personal relationship with the folks at the CU.
 
They still won't give me a "Casual Friday" hat that they all wear.  I'll wear them down (grin).....
 
atlast....
 
 



HUGE Congrats!!!!!  Ready to sail thru the summer now?  Smiley Happy
~*~*~*~*~*~*~*~*~*~*~
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 7 of 8
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Established Contributor

Re: How lenient is a CU?



WhirledPeasPlease wrote:


atlastontheroad wrote:
I went to my CU today assuming that I would have to beg.
 
Approved in less than 60 seconds of submission of the loan request.
 
They only pull TU, which was 678 according to myFICO this morning.  The CU told me that they saw 690.  Got the lowest IR for a "used" car (2 years old, 28k miles) on a 36 month loan which I will pay off in less than 30 months.  Plus, instant approval for an unsecured 5k visa that takes on the history of my secured card!  Sure, it's only 4 months history but I'll take what I can get.
 
Are they more lenient?  I don't know.  I do know that I have only been banking with them for 4 months but have made a huge effort to establish a personal relationship with the folks at the CU.
 
They still won't give me a "Casual Friday" hat that they all wear.  I'll wear them down (grin).....
 
atlast....
 
 



HUGE Congrats!!!!!  Ready to sail thru the summer now?  Smiley Happy


Thank you Smiley Happy  I'm pleased as punch. 
 
Sailing through the summer?  Not hardly.  Teaching summer school to pay down another chunk o' debt and replace old back windows (can you say "Energy Deduction" on next year's 1040?).  Oh, and there's that stinking 600 hour internship that needs to be done by February.
 
Nonetheless, August is looking mighty fine.
atlast.....
Ficos 2/17/08: TU 551 EQ 534 EX 587
Ficos 2/12/09 TU 695 EQ 715 EX 715
Fico...4/15/10....drumroll.....EQ 743
Message 8 of 8