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Credit Card VS Credit Union

  • 17-08-2009 11:21am
    #1
    Fox1978
    Registered Users, Registered Users 2 Posts: 223 ✭✭


    Hi,

    Getting married in December and trying to figure out the best way to fund this expensive event!

    We have a credit card debt of €2400 and had planned to pay off €500 per month and have it all paid off by Christmas, thereby giving ourselves room to put €2800 max on the credit card in December if needs be.

    The other option is that we put this €500 into a credit union account, take out a loan of €750, pay it back the next month, and so on and build up a relationship that by December we may be able to take out a big loan of, say, €4,000 based on the previous good credit history. Obviously though then the credit card debt remains, attaching interest each month, etc.

    We have other funds (our lucky parents ;-)) to help out so the final option is we continue paying off the CC and use the parents money to fund the credit union method.

    I'd be very appreciate to know of anyone else's experience with this. We already have a bank loan of €3,000 so can't go to AIB again. Never used credit unions either. Anyway, all advice and guidance much appreciated.

    TY


Comments

  • #2
    romah
    Closed Accounts Posts: 150 ✭✭romah


    hello Fox..just a few comments

    1. Is the credit card maxed out at €2400??

    2. Do NOT use your Credit Card for this type of spending..its not meant for occasions like this.

    3. Because you havent dealt with a credit union previously you may have to wait a while for your first loan I suspect ..maybe up to six weeks..
    and also planning to take 4 loans in four months and paying them all back in a short period isnt a good method of building up a credit history.
    Instead ...start saving now and have one loan application in Nov/Dec.

    4. Big Picture is Credit Card owed €2400 and Wedding €4000 (is that All?? ;)) and AIB loan €3000 ...Credit Card is costing you a lot in interest i
    assume BUT at the moment is your ONLY source of credit ..so manage it carefully and try to pay it off ASAP

    Best of luck !!


  • #3
    dobsdave
    Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    Dont think the credit union plan will work, probably wont get past loan no 2, without alot of questions.


  • #4
    Fox1978
    Registered Users, Registered Users 2 Posts: 223 ✭✭Fox1978


    Cheers guys, thanks for that.

    Credit card isn't maxed out. €2800 is the max and we have it at €2400. That's good to know about the credit union. Will adopt the suggested approach and just go in for one loan later in November. I got my account set up yesterday with them and it takes 6 weeks until you can get a loan.

    RE wedding, costing about €12,000 but we already paid for €5,000 so it'll cost about another €7,000.


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