The National Credit Union Foundation (NCUF), in partnership with Filene Research Institute, announced that 14 credit unions across the country are participating the product incubator for Non-Prime Auto Loans.
Non-Prime Auto Loans, an NCUF product, is one of five products in the Filene Research Institute’s accessible financial services incubator funded by the Ford Foundation.
“Credit unions have a long history as being the proving ground for consumer centric, innovative financial products,” said Cynthia Campbell, director of innovation labs at Filene, “and partnering with the NCUF to test the viability of Non-Prime Auto Loans with mainstream financial institutions was a natural fit since their experience in working with low-to-moderate income consumers is extensive.”
Eighty-eight percent of Americans drive to work. Without a car, options for work, food, childcare and healthcare become limited. Economic mobility is strengthened through the mobility that comes with affordable, reliable wheels. The product increases access to affordable auto loans to those who have credit challenges, officials said.
“Estimates say that families can increase their income by as much as 25% with access to reliable transportation,” said NCUF Executive Director Gigi Hyland. “We’re excited to work with not only Filene on this project but also such a wide array of credit unions across the country to give affordable, safe and reliable used cars to those that need them most.”