Unlike some lenders that require a good credit score or better, Consumers Credit Union does not have a minimum credit score requirement. That makes Consumers Credit Union the best credit union for a bad credit car loan if you have past credit issues. However, borrowers with lower credit scores may be approved for loans with higher interest rates.
Best Credit Union for a Bad Credit Car Loan
Consumers Credit Union offers car loans nationwide in amounts ranging from $500 to $350,000 . They offer new, used, and refinance loans with a relatively fast funding time.
Car loan funds can be available as soon as one day after approval. Anyone can join Consumers Credit Union for a $5 membership fee to the Consumers Cooperative Association across the United States.
Consumers Credit Union Car Loan Details:
- Availability: Consumers Credit Union offers auto loans in all 50 states.
- Car loan amount: Starts at $7,500 with no maximum amount.
- Car loan terms: Loan terms available up to 84 months.
- Turnaround time: Consumers offers same-day funding and can fund your loan as soon as the same day you close.
- Credit requirements: No minimum credit score required.
- Discounts available: Offers autopay discount.
- Prequalify: Members can pre-qualify with no impact to credit score via a soft credit check.
- Is a Co-Signor okay: Yes, if you need a co-signer they can become a member and co-sign the loan.
Rebuild your credit while driving the car you've always wanted.
New and Used Car Rates for years 2017 – present
|APR – 2021 to Newer
|APR – 2017 to 2020
|0 – 60 months
|61 – 72 months
|73 – 84 months
*Not all applicants may qualify for the fixed base rate. Your rate is determined by your credit history. Rates listed include applicable discounts of 0.25% APR, for details please ask a CCU Rep.
How fast will a car loan raise my credit score?
The time it may take for a car loan to raise credit scores is based on your particular credit history but in general, 60 to 120 days is a good estimation to see an impact to credit scores. Here are some of the ways a car loan will impact your scores:
- Making timely payments to boost your credit score. The most important action you must take to see an improvement to your scores is to make timely payments. Making timely payments on your car loan demonstrates your ability to manage debt responsibly. Consistently paying your monthly installments on time can help establish a positive payment history, which is a crucial factor in determining your creditworthiness. Late payments can kill a good credit score.
- Adding to your credit mix. A car loan can have a positive impact on your credit score by diversifying your credit history. Having a diverse mix of credit accounts, such as a car loan in addition to credit cards or other loans, contributes to a good credit score. Lenders like to see that you can handle different types of credit responsibly.
- Increasing your credit history length. When you take out a car loan, it becomes a new credit account on your credit report. As long as you make regular and timely payments on the car loan, it will contribute to the length of your credit history. The longer you have the car loan and continue to make payments, the more it adds to the overall length of your credit history. The length of your credit history is an important component of your credit score.
It's important to prepare for a bad credit loan prior applying to the credit union. You want the process to go as smooth as possible by having your financial information beforehand so can enter any dealership armed with a preapproved letter from the credit union.
History of Consumers Credit Union in Illinois
Consumers Credit Union (CCU) was founded in 1930 in Waukegan, Illinois, by a group of employees of the Consumers Cooperative Association. The credit union was originally called the Consumers Cooperative Credit Union, and it was open only to employees of the association.
In 1964, CCU became a state-chartered credit union, and its services grew to include employees of the Palisades nuclear power plant in Covert, Michigan. In 1984, Kit Snyder was named the CEO of CCU. Snyder led the credit union through a period of rapid growth, and in 1987, the name was changed to its current Consumers Credit Union.
Today, CCU is one of the largest credit unions in Illinois, with over 178,000 members and more than $2.8 billion in assets. CCU is owned and democratically operated by its members, who elect our all-volunteer Board of Directors. In turn, the Board represents our member-owners' interests in credit union policymaking.
CCU offers a complete array of products and services to its members, including checking, savings, debit and credit cards, consumer loans, money market accounts and CDs, along with a variety of mortgage products.