Nearly 50% of people surveyed believed they would have to pay an interest rate of 18% or higher for an auto loan after bankruptcy, according to a consumer bankruptcy education project survey by the National Consumer Law Center. Fortunately, this is not true, and newly-bankrupt consumers do have other options.
If your bankruptcy is at least one year old and your payment record after bankruptcy is clean, then credit unions, which you can join regardless of where you live, can offer their members excellent interest rates on car loans.
The easiest way to find out if you qualify for a car loan after bankruptcy is to complete the easy online application available through our website. You may be matched to a credit union, or another dealer or lender willing to extend credit despite bankruptcy.
If we are unable to match you to a lender, you can visit the Find a Credit Union website. This website provides a credit union match-up service called CU Matchup. Once you complete the form, which will ask questions such as the state, city, county, and zip code you live in, your employer or occupation, and schools you or your family members attend or graduated from, you will be matched with specific credit unions that you may be eligible to join. You can also include your ethnic background, religious affiliation, and any memberships you have with organizations, which will further enhance the search. Once the match-up is complete, it is important to visit their websites or call the listed credit unions to learn which one you qualify for and what services they can offer.
Often, just by being a resident of a county or state makes you eligible to join the credit union in that area. For example, residents of North Carolina can join the North Carolina Consumer Council with a two-year membership for only $36. Then they are immediately eligible to join Members Credit Union, which they can remain a member of even if they do not renew their NCCC membership after two years. Unfortunately, many states opt not to participate in the CU Matchup program. In these cases it is recommended to call your state’s Credit Union League directly to learn what credit unions you may be eligible to join.
If you are still unsuccessful at finding a credit union you’re eligible for, don’t give up! Any person can join the GTE Federal Credit Union. Please click on the link to visit their website. There, you can join their non-profit education club called CUSavers for a one-time, non-refundable fee of $10. By joining GTE FCU, you receive all of their benefits, including access to their secured credit card and auto loans, which is currently 6.49%. GTE FCU also has an excellent on-line financial educational resource center.
This article about how newly-bankrupt consumers can get an auto loan with credit unions was contributed by bankruptcy Attorney Jonathan Ginsberg, our expert bankruptcy contributor whose website can be found at: http://www.thebklawyer.com/thebkblog/