Getting A Credit Union Loan

dlambirl

Hi all,

Hoping if someone here could give me their opinion...

I'm 22, working this 2 years since I left college. I take home €370 per week. Live with my OH in our house. He's been unemployed for a year or more so i took care of the mortgage and weekly shopping, heating and esb bills. A couple of weeks ago my OH got a new job. Now he needs our car so I have decided it would be best to buy another one. I want a decent car and was looking at a one around the €10k mark.

Now, I used to have alot of savings in the Credit Union. When we were moving into our house I used the majority of it (around €8000) I'd have about €1,500 left. I havent been a regular saver in the Credit Union since. Since christmas i have started saving each week via an Online AIB savers account with our joint account.

My question is how hard would it be for me to go to the credit union and get a loan for €10,000? I know every Credit union is independantly run but Would they run me outta the building? My dad has all his business there - would it make any difference if he went guarantor?

I've checked the Car Finance Calculator with AIB and its given roughly €230 per month which would be fine. I can't apply online though because I havent made the deal with the car yet and don't have the car reg number, which it looks for.

Any advise, opinions or previous experience would be appreciated.

Misticles

Credit unions usually only give you 3 times whats in your share account, sure apply and say you can get a guarantor, they can only say no

If your getting the loan- would you not but a car outright as opposed to a finance agreement?

I got a loan for 7k for a car from the bank and bought outright- I wouldnt be a fan of finance agreements.
highest Ive taken from the credit union was 3k, I put in 1k so I could get that.

With a credit union- you cant touch your shares if the loan is more than whats in your share account.

ahh debts ha

dlambirl

No I would not like to go with a finance agreement either, would rather get a loan from the bank or credit union. the garage where i was looking at the car could do €11000 for around €56 per week.

I know the credit union's standard loan rule is 3 times what you have in, but i was wondering if anyone know if they could slightly bend that rule, if there was a guarantor.

Anyone

Best thing to do is contact your Credit Union and discuss it with them. All Credit Unions have different policies regarding lending, so what happens in one may not happen in another.

The main thing about any loan in any Credit Union though is the ability to repay the loan.

stepbar

dlambirl wrote: »

I know the credit union's standard loan rule is 3 times what you have in, but i was wondering if anyone know if they could slightly bend that rule, if there was a guarantor.

I got 12 times (and even at that I hadn't used my credit union a/c in about 5 yrs). I hadn't even the money in the a/c when I applied for the loan. But I'm a different case and I wouldn't expect anyone else to get the same treatment.

dlambirl

You probably had relations working there deciding on who got loans! God damn it why arent my relations useful??

stepbar

Ya I do. It helps. I'm not a real credit risk in fairness but it helps.

bills

Dont think they would laugh at you at all. Once your bank statements etc are ok & your dad is suitable as a guarantor.

dellas1979

I posted here a few months ago - someone else asking bout a cu loan.
I made an application and got a loan for 5k (car loan) with e50 in account. There wasnt even e50 in there when I made the application. No, no relatives in the place either.
So alot of the above does not ring true. Depends on the place I guess

dlambirl

Did you just walk in and ask about a loan or did you have to ring and make an appointment?

tc2010

Credit union in Waterford gives out loans without savings. opened an account and took out 5 grand for a car the same day, based solely on the fact i was working and had a good credit rating. At the time i had about the same pay as yourself

point is all CUs are different. all you can do is go in and ask

maybe borrow less and look harder for a good deal on a car to increase chances

dlambirl

I will be looking for a car in or around the €8-10k bracket. I'll be looking for the best deal around though, so worries about that!!!

Would I need to ring and make an appointment or just call in? Its only opened 3 days a week AFAIK

tc2010

Ive no idea about your local CU. in Waterford you just go in and queue up. you ask for the loan. the only delay will be if you dont have your documents. Payslips and Photo ID. if its early in the morning you should get an answer that day

Once i went in, they said theyd give me an answer that day. i heard nothing from them and assumed i didnt get it.

Went in a few weeks later and they said there was a loan waiting that i never collected. so basically if you dont get a call ring them

once again though things may be different in your local CU so you should just give them a ring and ask

dlambirl

My local CU is only open 3 days per week. I will ring them tomorrow morning to ask them what I would need to bring in and if I need an appointment.

dellas1979

Hi there,
No I didnt have an appointment. When I was enquiring about the loan (fishing around for the best rate/deal) I asked about this. You basically go in and ask at the counter to make a loan application. I waited bout 20mins for the loans officer to be available.

yes there are documents you can take with you to speed up the process. A (certified) payslip - your most recent one and 2 or 3 previous to that.

Photo ID - passport-drivers licence or something.

Bank account startments. For example, you may have some savings in your bank account with your main bank. Shows a saving pattern BUT you also have to make it clear that you would like to start saving with the CU aswell (they love that) for the duration of your loan. You can print these out from the internet if you have online banking.

You may need to haggle for the term of the loan. I had it all planned out to a penny what it would cost me over 5 years - she didnt want to give me 5 years - had to haggle. Eventually got 4.5 years out of her.

Decisions go to a board that sits once or twice a week (depends on credit union). The board examines your loan application and "yeas or nays" you. You may have to wait a few days based on what day you apply. You will also need to ring to see if you get the loan. They will not ring you.

Be clear, concise and professional. If you are organised and they see you know what you want it can help. Best of luck.

dlambirl

Thanks!
Gonna try and go in after work...

Aine5

Hi

I'm in the same position and would love to hear how you got on.

Hoping for a €10k loan aswell.
I have €1k in savings with them but I could out in another €1k if needed.

dlambirl

Literally JUST after getting off the phone with my CU with the decision:

I GOT MY LOAN!! :D:D:D:D:D:D

I've decided now to i'm gonna put any spare euro I have into the CU and not into my bank a/c cos they are a shower of W@***rs.

I went in last Thursday and applied. So informal, the CU staff are so nice. I had €1500 in my account although I was prepared to put another €1000 in if it helped but they said there was no need. Since it was my first loan and my account wasnt active for some time (all transactions for the last 3 years were withdrawls!) I had to get a guarantor but no probs though.

Toots

dlambirl wrote: »

I've decided now to i'm gonna put any spare euro I have into the CU and not into my bank a/c cos they are a shower of W@***rs.

dlambirl comments like this are not welcome on this forum, please familiarise yourself with the charter before posting.

dlambirl

Sorry. Was just very annoyed with my bank that they turned me down and I had alot more savings with them than I had with the Credit Union.