It is estimated that families can increase their income
by as much as 25% with access to reliable transportation. With 88% of Americans driving to work, this is a
huge need and also an opportunity for credit unions
to make a difference.
The Foundation, in partnership with the Filene Research Institute, is working to assist low- and moderate-income
consumers with its product incubator for Non-Prime
Auto Loans. The 18-month pilot program recently closed,
with 10 credit unions participating across the country.
Non-prime refers to the practice of making loans to borrowers with weak or no
credit histories or limited payment capacity. Research shows there is a tremendous opportunity for credit unions to reach out to this market that has
been disserved by predatory lenders and under-served by traditional lenders. Through prudent pricing
for riskier non-prime auto loans, credit unions can add to their bottom lines, while at the same time fill a
social need of helping consumers improve their health and well being through affordable credit for used
During the Foundation's pilot, over $102 million was lent to borrowers with an average interest rate of 11.47%. Over 7,605 loans were closed. Considering the
average borrower credit score of 581, the rates are lower than what most
consumers would have received elsewhere.
...contact Lois Kitsch, National Program Director, at (608) 504-1765 or email@example.com.
"This program is in alignment with our Mission,‘to provide for the well-being of our Members’
and speaks to our Core Values, ‘Membership, Service, Integrity, Community, and Education’.
We are here to help our members, and this applies to all of our members. We provide the education
to those that need it the most when it comes to obtaining safe and reliable transportation and fair
pricing when it comes to the financing.”
- Jim Brown
Senior Manager, Lending
The National Credit Union Foundation is a catalyst to improve people's financial lives through credit unions.