Consumers Credit Union Auto Purchase and Refinance Loans: 2023 Review

Full Review

Consumers Credit Union, also known as CCU, offers new- and used- car purchase loans and refinance loans. It also offers lease buyout loans, but only when initiated by a member at a dealership. CCU is especially flexible among auto lenders, with no restrictions on vehicle age or mileage.

Current auto loan rates are available on the CCU website, but they are “as low as” rates available only for applicants with excellent credit. On the website, applicants can also get a rate estimate with no impact to their credit score. If they proceed with an auto loan, CCU will initiate a hard credit pull that will slightly lower the applicant’s credit score.

CCU offers a 0.25 percentage point rate discount if automatic loan payments are set up. Rates shown on the credit union’s website reflect this discount.

Borrowers have a variety of ways to apply for a CCU auto loan. In addition to applying online or by phone, applicants can apply at any CCU branch in Illinois or 85 dealerships in Illinois and southern Wisconsin.

The credit union also offers an online car-buying service for new and used vehicles in partnership with TrueCar. Car buyers can search for vehicles near their ZIP code and get special member pricing. Those using the car-buying service should be aware that it comes with no loan rate discount and can result in multiple calls and emails from participating car dealers.

Consumers Credit Union may be a good fit for those who:

• Have good credit. CCU has a higher minimum credit score requirement than other auto loan providers.

• Want flexible qualifying criteria. CCU offers flexibility for some qualifying criteria, such as having no minimum requirements for credit history or income.

• Want the benefits of credit union membership. Members who arrange automatic payment from a CCU account, or schedule a transfer through online banking, receive the highest auto loan rate discount. Borrowers can manage their account and loan through the credit union’s website and mobile banking services.

Consumers Credit Union at a glance

• Application process

  • Origination fee: None.

  • Personal information needed: Social Security number or ITIN, address, length of time at address, phone number, email address, citizenship status, birthdate, employment status, employer name, housing status, housing payment amount.

  • Pre-qualification available: Rate estimates available on the CCU website with a soft credit check, although the credit union does not consider this a pre-qualification.

  • Online, in-person or both: Applications are taken online with mailed documentation, by phone, in credit union branches and at authorized dealerships.

  • Approval speed: Within one business day after all information is submitted. Offers are good for 60 calendar days.

  • Funding speed: For refinance loans, funds are mailed directly to the previous lender by check.

• Qualifications

  • Minimum FICO credit score: 620.

  • Minimum credit history: None.

  • Minimum annual gross income: None.

  • Maximum debt-to-income ratio: No set requirement, but is generally 50% or under for approved loans.

  • Bankruptcy-related restrictions: No open bankruptcies.

  • States covered: All 50 states.

  • Membership: Requires paying a one-time $5 membership fee and maintaining a $5 balance in a share/savings account.

• Restrictions

  • New vehicle definition: Not older than the current calendar year minus two.

  • Maximum used vehicle age: None.

  • Maximum used vehicle mileage: None.

  • Other vehicle restrictions: Vehicle must be purchased from a dealership. Tesla purchases are OK.

  • Loan amount minimum: $7,500.

  • Loan amount maximum: No maximum for new car purchases. $500,000 for used car purchase and refinance loans.

  • Maximum loan-to-value ratio: 125%.

  • Refinancing time restrictions: Buyers can refinance as soon as the previous loan’s paperwork is complete and the title can be transferred.

• Other loan details

  • Loan terms: 24-84 months.

  • Rate discount: Yes, 0.25 percentage point discount when automatic loan payments are set up.

  • Greater-than-minimum payments: Accepted and can be made by automatic payment. Surplus automatically applied to any accrued interest first; then directly to principal.

  • Biweekly payments: Accepted and can be made by automatic payment.

  • Late payment fee: Yes, after a 10-day grace period. Amount not disclosed.

  • Prepayment penalty: None.

  • Co-borrowers allowed: Yes.

  • Co-signers allowed: Yes.

  • Payment options: Mail-in check, phone, online banking, through website, mobile app, ACH or at a CCU location.

  • Selected payment due date: Borrower can select the due date before signing the loan agreement.

  • Cash-out refinancing: Yes, with the amount mostly based on the loan-to-value ratio.

  • Hardship plans: No.

  • Existing loan payoff: Funds are mailed directly to the previous lender by check.

• Customer service

  • Assistance provided: A credit union representative works with borrowers to discuss financing options and assist them with the loan process.

  • Availability: Monday-Friday 8 a.m.-6 p.m. CT.

  • Contact options: Phone, email, online chat, website form, in person.

CCU offers cash-out refinancing, meaning borrowers with vehicle equity may be able to receive cash up to specified limits with their new refinance loan. Borrowers should weigh the pros and cons of cash-out auto refinancing.

» MORE: Compare auto loan refinancing lenders

More from Consumers Credit Union

CCU offers GAP insurance and mechanical repair coverage, which can be rolled into the auto loan. In addition to car loans, this lender finances motorcycles, recreational vehicles and boats.

CCU is one of the largest credit unions in Illinois, with more than $2.8 billion in assets. It serves more than 178,000 members nationwide with a range of financial services, including checking accounts, loans, credit cards and business services. CCU has been headquartered in Lake County, Illinois, since 1930 and is accredited by the Better Business Bureau with an A+ rating.

Consumers Credit Union auto loan rates

Credit requirements vary by auto lender, but Consumers Credit Union’s lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 or higher). Borrowers with bad or fair credit won’t qualify for the lowest interest rates.

You can check your credit score before applying for a car loan.

Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 300-499 (considered deep subprime), a $20,000 used car loan, repayment term of 72 months, interest rate of 18% APR and $0 down payment would have monthly payments of $456. One year later, if all payments were made on time, the borrower will have paid the loan down to a balance of $17,963. If the borrower is able to then refinance at 12% APR for the remaining 60 months, the payment would drop to $399 and result in interest savings of $3,394 over the life of the loan.

How do we review direct lenders for auto loans?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).