Is there an interview when you go for a loan?

dellas1979

Ok - am looking for a few grand from the credit union. Does anyone know what the procedure is? i.e. I go in, say "I want a loan" and how does it normally go from there? Would there be an interview type scenario?
Thanks!

Davy

Not in my experience for a few grand

chris85

dellas1979 wrote: »

Ok - am looking for a few grand from the credit union. Does anyone know what the procedure is? i.e. I go in, say "I want a loan" and how does it normally go from there? Would there be an interview type scenario?
Thanks!

for that amount just go in and fill in a loan application and they will approve or reject it and the next sitting of the board which is usually once or twice a week.

Dannyboi3k

They are fairly straight-forward about it actually. Getting it is EASY. PAYING it back is the hard part :P

petes

You can ring it in aswell to see if its approved. I did that with my last one andjust had to go in and sign everything when I was getting the cash.

dellas1979

Thanks guys.
Need about 4k - have the rest of it saved (bought a new car). Credit union has best rates and no penalty for early pay back.

I thought it might take a few weeks. I intend to put the money already saved into my CU account and put it against the loan. The money is still in my main bank account. As am only applying for the loan (dunno if I will get it), maybe I should wait to move it?

One last thing, if they do give me the loan, and they write me a cheque (car people's names go on cheque), how long is the cheque valid for? Am supposed to get car end of Jan but would prefer to sort finances now.

Edit: I went to the CU last night to get answers to these questions and made the application. I had to wait 10mins for someone to come see me and then a little old lady came asked me to come into her office. She entered information into the system and told me what she wanted me to pay them back (i.e. I wanted loan for 5yrs, she wanted me to pay it back in 3.5yrs) so we haggled a little bit and eventually agreed on e20 a week for 5 yrs plus e5 to a savings account. I can then pay back more without penalities - I plan to have 4k paid in 2 years.

She was a tough little lady - I dont know how loans work or if this is normal, but stick to your guns. One thing she asked, which I thought was really funny, was why I didnt have savings account with them - I wanted to reply "cause your savings rate is ****e" but I said "oh when I opened my current savings account, 15 or so years ago, the credit union had no electronic transfer..." or something to that effect.

So, it goes to "board" now on tuesday or thursday. She didnt seem very confident, but will see.

romah

I thought it might take a few weeks. I intend to put the money already saved into my CU account and put it against the loan. The money is still in my main bank account. As am only applying for the loan (dunno if I will get it), maybe I should wait to move it?

If you haven't been operating your credit union account and dont have a lot (if any ..) money in your account that "little old lady" might be right !!!
Credit Unions always look at the amount of shares or savings that you have with them . Your savings are viewed as security against the loan . Promising to put money in this week from the bank and expecting a loan from the credit union is being very optimistic..you need to build up some sort of a savings record first so that you can prove to the credit union that you can afford to pay back a loan .

One last thing, if they do give me the loan, and they write me a cheque (car people's names go on cheque), how long is the cheque valid for? Am supposed to get car end of Jan but would prefer to sort finances now.

You can get a loan approved but dont have to take the cheque immediately ..up to 3 months i think ..

Edit: I went to the CU last night to get answers to these questions and made the application. I had to wait 10mins for someone to come see me and then a little old lady came asked me to come into her office. She entered information into the system and told me what she wanted me to pay them back (i.e. I wanted loan for 5yrs, she wanted me to pay it back in 3.5yrs) so we haggled a little bit and eventually agreed on e20 a week for 5 yrs plus e5 to a savings account. I can then pay back more without penalities - I plan to have 4k paid in 2 years.

If you plan to repay the loan in 2 years why are you looking for a 5 year loan ?? Yes..the weekly repayments are less but is it realistic...
As a rule on car loans ...Take a loan for a car for 2 years if you plan to change that car after 2 years . This way you are paying for a car as you use it .

dellas1979

Ah no I disagree with you romah.

I have to stretch it for the moment - I am also in Adult education doing an MA which costs a fair bit and have to factor in other outgoings too (which the credit union were unable to do on their system). If I save up/come into money (though job etc) I will most certainly pay it off immediately - there is no penalty to doing this (as opposed to a normal bank loan).

I intend to pay it off in 2, but if for example I loose my job, which is a possibility, then e20 a week is not going to kill me.

My savings are with AIB and Rabo. The credit union do not have good enough interest rate (well Rabo are gone fairly bad these days also) but I provided evidence of my saving pattern with AIB. I didnt just walk in off the street and demand 4k.

On a side note, I dont need to borrow the 4k. The reason I am borrowing the 4k is because in the next year or two (two Id say - job pending please God) I would like to try and buy a house - rather than renting - Ive no loans or anything to push up my ICB credit rating if going for a mortage. I have a credit card which I rarely use. 4k isnt a huge amount but shows paying back patterns.

romah

hello dellas

you seem to have thought this situation through very well so fair play to you ..you seem to have a sound financial brain ..

i am a credit union member myself ...only have the mortgage from the bank ..its the best way to operate ..no charges ..very competitive fixed interest rates for lending and a reasonable dividend on savings ..even have ATM..

keep the credit union on your side..they are very useful

dellas1979

Hahaha yeah my mam always said I was in the wrong profession! I told her I was only interested in managing my own money .

I had a whale of a time in my 20s - partying the last 10 years away - am still flying the party flag, but its time to start thinking realistically. Jobs are not safe, nothing is for sure. The only thing constant is change.

The little lady said she also wanted me to put in e5 a week into savings bringing total to credit union to 25 per week - if she wants me to put in e5 for 4k I said no problem .

incidentally it looks like not all credit unions are part of the ICB - not sure how up todate this is though http://www.icb.ie/membership.php#CreditUnions

Mc Love

Can you get a transfer from the credit union?

dellas1979

No - because you are getting the car loan rate (6.5%), the cheque or what ever has to be in the name of the car dealer.

For example, I cant get a car loan and ask for it to be transferred to my account - I could go off and buy 100 pair of shoes for all they know .

Apparently lots of people used to do this - get the good rate and then off to clear the credit card or pay/buy whatever.

dellas1979

Surprised to say I got the loan.
25p/w and 5 for savings. So 30p/w.
Dont have to start paying back until I draw down the loan in the next week or so.

chris85

dellas1979 wrote: »

Surprised to say I got the loan.
25p/w and 5 for savings. So 30p/w.
Dont have to start paying back until I draw down the loan in the next week or so.

Good stuff...

romah

dellas1979 wrote: »

Surprised to say I got the loan.
25p/w and 5 for savings. So 30p/w.
Dont have to start paying back until I draw down the loan in the next week or so.

A nice little old lady !!!

dellas1979

Hahaha she was a tough little lady though! She had little comfy slippers on!:rolleyes:
Felt like I should have been having a cup of tea with her or something.

I dont think I mentioned this, but I had e56 in CU account when making the loan application - looks like the 3 times thing doesnt always apply.