Date: November 14, 2013

Sub Prime Guidelines

Underwriting Requirements:

  1. 2 year time on job. Verified by a phone call to their employer.
  2. LTV’s up to 105% for existing members and 100% for new members. (plus GAP)
  3. No more than $25,000 to one borrower.
  4. No Late Pays or new collections within the last 90 days.
  5. Once the member has a sub-prime loan, a new sub prime loan may not be granted until they have made 18 on time payments.

GPS Unit required

  1. GPS units will be installed on each vehicle.
  2. Cost of GPS unit will be short funded to dealership.
  3. Dealer to install GPS unit before customer takes possession.
  4. This requirement may be waived for existing good standing members at the discretion of the Loan Officer.

For Credit Scores 599 and below
New Member / New Member with Direct Deposit Auto Pay / Existing Member (at least 3 mos) / Existing Member (min. 3 mos) w/ Direct Deposit Auto Pay
LTV / 90% / 90% / 95% / 100%
DTI / 35% / 36% / 38% / 41%
Job Time / 2 years / 2 years / 2 years / 2 years
Unsecured Debt Ratio / <5% / <5% / <7% / <7%
Note: No recent late payments or new collections within the last 90 days - GPS unit required unless waived by level 2 and above loan officer
All LTV's allow for an added GAP product
Auto Loan Credit Depth (age of the oldest tradeline) Guideline
<1 year / 1-2 years / 2-5 years / 5-10 years / 10+ years
Max OTD / $ 5,000.00 / $ 15,000.00 / $ 25,000.00 / $ 50,000.00 / 1-2 times annual salary
Note: Addition of qualified co-signer will increase limits by $5,000.
Typically do not go more than 125% of the highest auto loan on their current credit report or more than 1x annual salary.
Term / Vehicles 0-2 Yrs Old
24-60 months / 16.00%
72 months / 17.00%
Vehicles 3-7 Yrs Old
24-60 months / 17.00%
Vehicles 8+ Yrs Old
24-48 months / 23.00%

GPS Unit Information – purchase product PG-X2 (it’s worth the extra money)

Contact them at

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My two cents: The most important thing with this GPS unit is not being able to find the vehicle if it goes into Repo status. It’s being able to stop it from ever getting that far. This unit allows you to sound an alarm in their vehicle when they are even one day late. This is annoying but effective. Then, if that doesn’t work you can turn the vehicle off. For most of these members this is the way they drive to work. Do you think they are going to not pay you when you just put handcuffs on their paycheck? Heck no! You will see them in your office very soon with money in hand. And if you have to repossess you can do it sooner and with more confidence that the vehicle will be in better shape and you will know exactly where it is. They charge us $195 per unit and it takes about an hour for a mechanic to install it. We charge the member for this as a GPS unit fee when we do the loan. I would suggest buying 2-3 of them up front. Then find a mechanic that is willing to install them (a dealership that you are familiar with is a great place to start). If you have to talk to your board before doing this trial, do that first. Then try it and see if it is worth your time. You may be surprised as to how excited and thankful the member is. If it seems like something that is worth your time then keep doing more. Good Luck!