Cross-collateralization is a common practice used by credit unions, where one piece of collateral—such as your vehicle—secures multiple loans. This means if you have a car loan and later take out a personal loan from the same credit union, your car could be used as collateral for both debts. As a result, even if you pay off your car loan, the credit union may still hold the title to your vehicle until all other loans are repaid.
Credit Unions and Cross-Collateralization With Vehicle Debt
Cross-collateralization is a common practice used by credit unions, where one piece of...
