Many newly-bankrupt consumers believe that they will not be able to get a car loan with an interest rate lower than 10%. In fact, nearly half the people surveyed in a consumer bankruptcy education project survey conducted by the National Consumer Law Center (NCLC) believed they would have to pay an interest rate of 18% or higher for an auto loan.  There is another way. Credit unions offer their members excellent interest rates on car loans, as long as your bankruptcy is at least one year old and your payment record after bankruptcy is clean.

The easiest way to find a credit union you are eligible for is to go to www.joinacu.org. This website offers a credit union match-up service called CU Matchup. You fill out the form, which asks you to list which state you live in, your employer or occupation, any school you or your family members attend or graduated from, plus your city, county and zip code. You can also include your ethnic background, religious affiliation and any organization or association memberships, which will help match you with specific credit unions that you may be eligible to join. Often, simply being a resident of a county makes you eligible to join the credit union in your area. Go to the websites or call the credit unions listed in your search results and find out which listed credit union you qualify for and what services they offer.

Some states don’t participate in the CU Matchup program. If your state doesn’t participate, call the phone number or visit the website for your state’s Credit Union League. Many state websites have their own search engines. Your best bet is to call your state’s Credit Union League directly to find out what credit unions you might be eligible to join.

If you can’t find a credit union you’re eligible for, don’t despair. Anyone can become a member of the GTE Federal Credit Union (www.gtefcu.org). As I mentioned earlier, anyone can join the GTE FCU by joining their non-profit educational club, CUSavers. The membership fee is a one-time, non-refundable $10. Can’t beat it! If you’re not eligible to join any other credit union, $10 will get you membership in this one – and bring you all the benefits of membership, including access to their secured credit card and auto loans (currently 6.49%). GTE FCU also has a very good on-line financial educational resource center.