Credit Union Creates Auto Loan For Those With No Credit

Generations FCU launches ‘Your Ride, Your Rules’ auto buying program to help first-time members establish their credit and their independence.


Generations Federal Credit Union has launched its “Your Ride, Your Rules” first-time auto buyers program which is designed to assist first-time car buyers overcome the hurdles they face as they look to purchase their first vehicle.

To qualify, first-time buyers need to provide proof of three months of income, be at least 18 years of age, have no previous auto loan credit, and show proof of insurance prior to funding.

Generations also requires applicants to complete an online Financial Literacy 101 course that covers topics such as the total cost of ownership, financing car purchases, negotiating a price with sellers, avoiding surprises, and common mistakes when buying a car. The online Financial Literacy course is approximately one hour in length.

Additionally, and most notably, Your Ride, Your Rules applicants do not need a two-year employment history and do not need a co-signer for the loan. In fact, all a member needs is:

  • Texas Driver’s License
  • Proof of Income – 3 months of paystubs
  • The ability to get auto insurance
  • Three references
  • Have an idea of what kind of vehicle you want

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To participate in Your Ride, Your Rules, first-time buyers cannot have derogatory history and their payments cannot exceed 20% of monthly gross income. The loan maximum is $25,000 and the term is for 48 months.

Generations says it is the only financial institution in San Antonio that offers a program of this type.

“Buying your first car, no matter if it’s new or used, can be a nerve-wracking and difficult experience; especially when it comes to financing,” says Andrew Wilson, VP/Lending at Generations FCU. “As a credit union we are committed to being an advocate for our members. Your Ride, Your Rules helps them get a fair deal on that first car and also to be successful in paying it off and building a strong credit history.”

“Introducing a fixed rate monthly payment schedule enables that first-time buyer to establish a history of monthly budgeting and paying off a loan,” Wilson continues. “It provides them with successful building blocks and, perhaps most importantly, provides them with the confidence to build credit independently as they begin to go out and establish themselves in today’s challenging economic environment.”

Read More: Credit Union Lets Members Walk Away From Auto Loans

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