DENVER — If you are shopping for a used car and you have less than A or B credit, you’ll pay a higher interest rate on a loan. That’s a given, and even subprime borrowers who aren’t financially savvy know it from experience. But just how bad a deal can you get? And how many credit unions on the Centrix Portfolio Management Program would make (on their own) the kinds of loans that Centrix made and sold to them?

Credit Union Times has viewed several loan documents that detail a typical Centrix loan that was sold at the height of its PMP in December 2003. A Chrysler Concorde 2000 with almost 50,000 miles was sold to a consumer with a debt to income ratio of 41.26% and a payment to income ratio of 18.97%. The sale price was $11,990, the documentation fee was $779, the license fee was $250 and stamps and other fees were also added to the total amount financed.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Dig Deeper

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2022 ALM Global, LLC. All Rights Reserved.