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rickyrljr

My Credit Union If I default on my credit card will they attach the balance to my auto loan

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Can they demand full balance owed on auto loan because I defaulted on credit card? Or attach balance when auto is paid off?

Most credit union agreements have a "cross collateral clause". This means that if you default on anything they have a right to go after all deposit accounts and can assert a lien against the auto. They often have language in their agreements that give them the right to default the auto loan based on your default of another account at the same CU.

 

That said, how they handle the situation will vary from one CU to another. They can demand payment in full or repossess the vehicle. Will they do that is unknown.

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If you know you are going to default refi the car through someone else. ..get it out of their hands. ...then say screw the card if there are no other options

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