Has anyone got a CU loan lately?

foundry

Hi

Just wondering if CU's are the best way to get a loan.

I only set up my account last month and am saving 250e p/m.
Looking to receive a 3k loan in a few months.
Obviously every case is different but am wondering do I have a chance??
I bring in about 1300 a month.

Any one have any info or advice on the best way to get a loan with CU?

BOI refused as I have a 800e CC maxed. I do make the repayments every month, but then I spend it :eek: This will stop. Will CU hold this against me??

Ta

chris85

foundry wrote: »

Hi

Just wondering if CU's are the best way to get a loan.

I only set up my account last month and am saving 250e p/m.
Looking to receive a 3k loan in a few months.
Obviously every case is different but am wondering do I have a chance??
I bring in about 1300 a month.

Any one have any info or advice on the best way to get a loan with CU?

BOI refused as I have a 800e CC maxed. I do make the repayments every month, but then I spend it :eek: This will stop. Will CU hold this against me??

Ta

I recently got one no problem. If you are looking at getting the loan in three months you will have been saving for three months which is the minimum period of time they would need to have seen saving so not too bad.

They generally lend out a maximum of 4 times what your savings with them are. Hopefully you have €750 saved and you can then get €3k. This can vary between different CUs. The savings will also be tied up with the CU so you will not be able to withdraw until loan is cleared.

They will then assess your ability to repay the loan back. As long as you are maintaining payments against the CC and are not defaulting on payments should be fine but would advise to stop using the CC as much.

I transferred to a local credit union in May having been a member of a different one for a few years.

I saved every week since May up until last week (having saved weekly in my previous CU for months) I got a couple of small loans in this time, maximum was what I had in my account (as that was the limit I was allowed)

I got these loans as I was advised by the credit union to improve my credit rating with them for when I wanted to apply for a bigger loan.
I paid these loans back while still saving and my latest balance was €2000.

I then applied for a loan of €5000 (really needed 6000 but thought better chance of getting this).. This loan was refused and when I went to find out why, and to try appeal this decision and reapply for €4000, I was told there was no point reapplying as the maximum loan I could get was €2000 which I had saved.

The reason they gave me for this was, I wasn't a member long enough in their Credit Union to apply for a larger amount than what was in my shares.

Ogham

I wouldn't rely on any Credit Union giving out loans at the moment. Many of them are in trouble with the regulator and have to limit teh amount they loan each month . See http://www.moneyguideireland.com/limits-placed-on-credit-union-loans.html

foundry

Thanks for your replies!

I much prefer Chris85's post! Maybe you were just lucky one? I could be too...

BigBoss47 sorry you didn't get your loan, if you don't mind me asking have you any bad credit history? You have been in your cu 5 months, your old cu does not stand to you??

Ogham do you know if those restrictions are in place yet?

I have heard that regular savings and taking & paying back small loans is the best way to get a CU loan so Bigboss47 story alarms me.

foundry

foundry wrote: »

Thanks for your replies!

I much prefer Chris85's post! Maybe you were just lucky one? I could be too...

BigBoss47 sorry you didn't get your loan, if you don't mind me asking have you any bad credit history? You have been in your cu 5 months, your old cu does not stand to you??

Ogham do you know if those restrictions are in place yet?

I have heard that regular savings and taking & paying back small loans is the best way to get a CU loan so Bigboss47 story alarms me.

Hey, sorry for the depressing response Just thought you should hear both sides.

No I have no bad credit history at all, never been in debt before in my life.

The only thing about my first credit union was I never got a loan from them I just used it to save so the other credit union said this was another reason they wouldn't lend to me.

The small loans part is exactly what I was told also, just when I applied for my big loan they basically said I wasn't a member with them long enough to get anything more than my shares.

I am currently unemployed but I asked them was this a factor in their decision but they said not at all.

chris85

foundry wrote: »

Thanks for your replies!

I much prefer Chris85's post! Maybe you were just lucky one? I could be too...

BigBoss47 sorry you didn't get your loan, if you don't mind me asking have you any bad credit history? You have been in your cu 5 months, your old cu does not stand to you??

Ogham do you know if those restrictions are in place yet?

I have heard that regular savings and taking & paying back small loans is the best way to get a CU loan so Bigboss47 story alarms me.

I have a good credit history rather than no bad history. By this i mean i have a Credit card which gets paid always, previous student loan cleared within 6 months of leaving college and previous CU loan with no payments missed over 3 years.

My CU is in healthy shape though. Some are not.

MagicMarker

OP, why are you putting 250 a month in the CU when you could be paying off your credit card?

Elliee

Im currently unemployed and took out a loan in the last few months, they certainly dont hold it against you. As someone else has already said its usually between 3 and 5 times your savings you can apply for.
I also have a cc maxed that I pay off and spend it again, and they didnt hold that against me either.
Best Of Luck with your application.

MajorMax

The credit union is a life saver. I wish I had joined years ago.

I joined my jobs Credit Union in June 2009 saved like hell and in April 2010 I borrowed €12,000 based on €6,000 savings to get married paid off at €500 PM salary deduction. €450 off the loan & €50 to my shares to be paid off over 26 months

This May my car's engine blew up. I was rightly scréwed. I went to the CU and they gave me ANOTHER €12,000 for a 2009 Mazda 3, (I bought the car and used the rest for a holiday in Italy) Don't tell the Credit Union

This loan was combined with the remainder of my original loan and the term of the loan repayments remains the same but is now spread over 48 months

DrPhilG

Not to hijack the thread but...

How do previous loans affect your standing with the CU?

I borrowed €30k a few years back (moving house and getting married). Had €12k in there at the time. I paid it back 2 years early, but once I got the loan down to €10k I cleared the balance with my savings, leaving €2k saved.

I've heard that they don't like you doing that, so is that likely to have an effect on future applications? I have €5k saved and I'm looking to borrow €15k for home improvements.

I'm currently putting in about €500 a month and this will increase after Christmas as we're currently planning a holiday in December. Once that's out of the way we'll be saving over €1000 a month.