Credit Union Auto Loans with Bad Credit

Applying for an auto loan at a credit union is easy, although it usually has to be done in person. In most cases, borrowers have to live in the area served by the credit union. Credit unions require borrowers to become members once they get approved for a car loan which means they'll need to open a savings account (called a share account).

The most important thing to remember is that if borrowers have issues with their credit, they may not qualify for a car loan through a credit union car loan – although credit-challenged borrowers that already have a relationship with a credit union will generally have a better chance of getting approved for a loan at a credit union than those who have a relationship with a bank.

In addition, credit unions are far more likely to offer their current borrowers alternatives to keep them from defaulting on loans such as loan extensions, loan re-finance options, and even loan revisions (such as combining loans).

Like banks, though, credit unions typically don't approve auto loans to applicants with the lowest FICO scores.