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Credit Union New Account

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  • 15-07-2014 12:28pm
    #1
    LarryMac
    Registered Users Posts: 111 ✭✭


    Hi All,
    I am thinking of opening up a CU account for the purpose of getting a loan as their Interest Rates seem to be lower than the Banks.
    But, it looks like they are only lower if you have shares.

    So, how long do you have to be saving shares before you can ask for a loan? Reading some posts here it seems after around 2 months?

    If I transfer saving direct to the CU for shares can I then apply for a loan and then also withdraw my shares so I have the new loan and my shares at my disposal.

    Example:
    I lodge €5K as shares then after 2 months ask for a loan of €10K.
    If successful, can I then withdraw the €5K shares to add to the €10K loan giving me €15K to spend.
    Thanks


Comments

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    #2
    kitten_k
    Registered Users Posts: 6,046 ✭✭✭kitten_k


    You need to build up your shares over a period of time to prove that you can save.

    Also you cannot withdraw your shares while you have a loan against them


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    #3
    LarryMac
    Registered Users Posts: 111 ✭✭LarryMac


    kitten_k wrote: »
    You need to build up your shares over a period of time to prove that you can save.

    Also you cannot withdraw your shares while you have a loan against them

    I have regular savings with the bank. If I show statements with the regular monthly savings would this help as proof as a regular saver?

    I would continue to save, but would reduce amount and pay into the CU instead of bank.

    But your second answer is more relevant to me. If I had to keep my shares in the CU then I would have to take out a bigger loan!

    Thanks for the prompt reply!!


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    #4
    Gael23
    Registered Users Posts: 12,089 ✭✭✭✭Gael23


    They use your shares as security against the loan so you can't withdraw anything. I would think showing your bank statements may help but.you.might have to wait a short while and build up a savings history with them


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    #5
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Its all about repayment ability. Having a savings record with your bank is a big plus and your CU should be pleased to see you can squirrel away a set amount every week or month. This is how they know you can pay back a loan every week or month
    Also CU's have plenty of shares, you don't need €5k in just to get €10k. That is old hat. The risk to the CU is €5k. Why not save €1k and ask for €6k?? Same difference to you and to the CU.
    Mainly they want to be convinced you can repay every month or week


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