Generations FCU recently launched its “My Ride Rules” program to give first-time car buyers information on building credit history while also finding a good deal on a vehicle purchase.
Participants in the program must provide proof of three months employment history, be at least 18 years old, have no previous auto loan credit and show proof of insurance. Applicants to the program are also required to complete an online course on car ownership and purchasing.
To be eligible, first-time buyers cannot have negative financial history and their payments may not exceed 20 percent of their monthly gross income. The loan maximum is $25,000 and the term is for 60 months.
“Introducing a fixed-rate monthly payment enables that first-time buyer to establish a history of monthly budgeting and paying off a loan,” Generations FCU Chief Lending Officer Clay Thomson said. “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 originally one-time “My Ride Rules” promotion was run in March 2013 but, because of its success, Generations FCU made it a permanent product.
“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.”