SAN ANTONIO (4/7/14)--Generations FCU has launched a first-time car buyers program designed to help members get a good deal on a vehicle and build credit history at the same time.
Prior to funding, participants in the "My Ride Rules" program are required to provide proof of three months of employment history, be at least 18 years of age, have no previous auto loan credit and show proof of insurance. A co-signer is not required.
The $437 million-asset-San Antonio-based credit union also requires applicants to complete an online course on car ownership and purchasing. The online financial literacy course is roughly 15 minutes in length.
"Introducing a fixed-rate monthly payment enables that first-time buyer to establish a history of monthly budgeting and paying off a loan," said Clay Thomson, Generations FCU chief lending officer. "It provides them with successful building blocks and, perhaps most importantly, provides them the confidence to build credit independently as they begin to go out and establish themselves in today's challenging economic environment."
The credit union introduced "My Ride Rules" as a one-time promotion in March 2013. Because of its success, Generations FCU made it a permanent product. To participate in "My Ride Rules," first-time buyers cannot have negative financial history, and their payments cannot exceed 20% of monthly gross income. The loan maximum is $25,000, and the term is for 60 months. Refinance options are available for first-time auto loans with other financial institutions.
"Our goal as a credit union is to be a financial advocate for our members, to help them navigate what can sometimes be a tricky path to success," Thompson said. "This program provides first-time buyers with the tools they need to not only get a fair deal on that first car, but also how to be successful in paying it off."