Cobalt Employees, Alejandra Miller and Luis Martinez, with the Consulate of Guatemala in Omaha
A man had heard about Cobalt Credit Union’s new ITIN loan program and wondered if he was eligible and could receive a better rate on his car loan.
He was — and he could.
Cobalt Credit Union — through this new loan program — allowed him to reduce his car loan payment from $750 to $250 and his payment on a personal loan with a financial institution from $400 to $150.
“He was almost in tears, knowing he would save $750 a month. It gave me goosebumps to help him,” said Luis Martinez, the Cobalt branch manager who assisted this member.
The man, who works in maintenance, was eligible for the program because he has an ITIN, which stands for Individual Taxpayer Identification Number.
Immigrants, when they arrive in the United States, can apply for an ITIN, which allows them to work, pay taxes and file a tax return each year. Typically, a Social Security number is required by lending institutions to issue loans. Often, those without a Social Security number turn to check cashing — and other higher interest rate products — to fund their higher-priced items, such as cars and kitchen appliances.
Cobalt employees participate in their local Cinco de Mayo festival
“It can take ITIN holders five to 10 years to receive their Social Security numbers,” Martinez said. “That’s why we give them this opportunity.”
Launched in April, Cobalt Credit Union’s ITIN loan program is geared toward the area’s Hispanic and lower-income populations. Cobalt Credit Union did its homework and determined that the program could benefit both populations. “That’s why we went all in,” Martinez said.
Cobalt Credit Union offers personal loans, lines of credit, mortgages and car loans through its ITIN program. Members can apply online, by telephone or in-person at any of Cobalt’s 25 locations in the Omaha area. Cobalt employees can assist people in English and Spanish.
To be eligible, a member must provide:
- A current ITIN document
- A current pay statement
- A current passport or consulate ID
Applicants, in order to qualify for the program, first open a Cobalt account, with a $5 minimum initial deposit.
Remember the man with the car loan with high interest rates? “He walked out as a Cobalt member with a new loan,” Martinez said. “What he saved from his lower loan payments, he started saving for his future.”
Cobalt’s goal is to make the application process quick and easy. Determining initial eligibility can take as little as 10 minutes. Cobalt ITIN loan members, who refinance current loans with other institutions, often see the interest rates on those loans cut in half — the same for their payments.
Cobalt employees host a financial literacy event at the Mexican Consulate
Martinez has another story to tell. This one is about a longtime Cobalt member who needed to remodel the bathroom in her home.
The woman told Martinez, during a regular stop at his branch, that she needed to remodel her bathroom. She was headed to a hardware store outlet where she planned to apply for a credit card to finance the project.
“She was worried whether she would be approved,” Martinez said. “The work needed to be done right away and she was willing to pay the price — a 22% annual percentage rate.”
Martinez told her about Cobalt’s ITIN program and she applied for a $10,000 loan. Because of her history with Cobalt, she had her loan approved in minutes. Her loan carried a 10.49% annual percentage rate and a monthly payment of $249. All loans are subject to credit approval.
That same day, she hired a worker and bought the materials needed for the project. The member gave Martinez regular updates, and he knows the project was finished to her satisfaction.
“She came back and showed me pictures.”
To learn more about Cobalt’s ITIN program, visit cobaltcu.com/itin.
