Non-Prime Auto Lending Toolkit

While lenders use different criteria and credit scores to differentiate prime from non-prime loans, generally those applicants with C credit and lower will be considered non-prime borrowers. Most lenders, including credit unions, are apt to charge higher interest rates for non-prime loans over prime because they carry higher delinquency and loss risk.

Most American workers (88%) drive to work. Not owning a car is a barrier to economic mobility and decreases a person’s chance of improving job opportunities. Those with credit challenges are often forced to use predatory buy here/pay here auto lots, where they are more apt to be sold a poor quality car at a questionable price and interest rate, regardless of the buyer’s ability to repay. If the buyer misses even one payment, the car is repossessed. Credit unions should want to make more auto loans, especially in the current slow-growth market environment.

For More Information... Lois Kitsch, National Program Director, at (608) 504-1765 or

Click here to find out more about our non-prime auto lending pilot program.