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Courtney_scott
Posts: 2
Registered: ‎05-23-2008

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!
Contributor
Sushi
Posts: 166
Registered: ‎05-11-2008

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.
Regular Contributor
ChuckG
Posts: 156
Registered: ‎02-21-2008

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
Established Contributor
atlastontheroad
Posts: 546
Registered: ‎02-16-2008

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
Established Member
AerosmithCat
Posts: 11
Registered: ‎04-24-2008

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 :smileyhappy: 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
Contributor
Saedra
Posts: 81
Registered: ‎05-28-2007

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.
Moderator Emeritus
WhirledPeasPlease
Posts: 3,417
Registered: ‎12-27-2007

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?  :smileyhappy:
~*~*~*~*~*~*~*~*~*~*~
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.
Established Contributor
atlastontheroad
Posts: 546
Registered: ‎02-16-2008

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?  :smileyhappy:


Thank you :smileyhappy:  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

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