credit union loans

guinnessdrinker

does anyone know if credit unions will give a loan to clear a credit card debt? or is that something they will refuse?a

Park Royal

I'm aware of one Credit Union that does.....in some cases getting the member to

cut up their card , before loan is sanctioned......

Paying off loans that have high interest rates....is a provident thing to do....

specially loan sharks......CU's usually go out of their way to help people get

rid of high interest loans from loan sharks and credit cards......but it also

depends on the member......so a talk with your CU is required .......remember

your only one of thousands ......the CU deals with monthly......so talk to them

and see what can be sorted for yourself.......good luck....

Wanderer2010

guinnessdrinker wrote: »

does anyone know if credit unions will give a loan to clear a credit card debt? or is that something they will refuse?a

You dont have to specify that its for clearing a credit card debt do you? I have gotten loans from them and usually just say Christmas expenses or holidays etc and that seems to be ok.. You might be risking a refusal if you mention credit card debt as they may see your credit as being a bit dodgy..

chris85

Wanderer2010 wrote: »

You dont have to specify that its for clearing a credit card debt do you? I have gotten loans from them and usually just say Christmas expenses or holidays etc and that seems to be ok.. You might be risking a refusal if you mention credit card debt as they may see your credit as being a bit dodgy..

You may risk getting refused if you dont mention it. For instance it looks better from the CU's point of view a member taking a loan to clear a CC rather than taking a loan as well as having a CC debt already there.

P. Breathnach

Wanderer2010 wrote: »

You dont have to specify that its for clearing a credit card debt do you? ...

It is wrong to tell lies in applications to borrow money.

I dont know

I joined the CU recently and got a £3k loan straight away to pay off 2 cards I've had with ridiculous interest since college. I had to provide 6months bank statements & proof of my 2 Credit Card balances showing me paying in to them every month etc

The cheques had to be made payable to the CC company. Should hav done it ages ago, I was getting completely ripped off

EDIT: I also provided a credit report from experian (as advised by them) And I also showed proof that I had just finished paying off a car loan over 3 years (so proving I could afford to repay the loan)

phormium

My local one certainly does, they just require that you no longer use the card and may advance only half the bill upfront and the balance few months later once you can prove it is no longer being used. Do not lie, most credit unions have access to ICB so can see your debts if they wish, refinancing credit card debt is a quite common reason for credit union loans, however it is important to ensure you do not repeat the problem by running up further debt on the card.

guinnessdrinker

Thanks for all the replies guys. My credit card bill is not massive but with the high interest rate it makes it difficult to reduce the amount owed.

We have stopped using the credit card ages ago and just want to try and clear it now. We have a good history with the CU so I will go in and speak to them.

I just heard second hand that CU's didn't give loans to clear other institutions loans so wasn't too sure how true it was.

orchidsrpretty

I asked my CU for a loan to clear off a cc that wasnt too high(3k). Had a lot more than that in my saving and was refused as they said they don't give loans to clear other debt. Although they have no problems giving out loans for holidays and christmas etc.. Doesn't really make sense to me.

Wanderer2010

P. Breathnach wrote: »

It is wrong to tell lies in applications to borrow money.

:D:D

chris85

orchidsrpretty wrote: »

I asked my CU for a loan to clear off a cc that wasnt too high(3k). Had a lot more than that in my saving and was refused as they said they don't give loans to clear other debt. Although they have no problems giving out loans for holidays and christmas etc.. Doesn't really make sense to me.

Thats a strange one, I have the opposite view as I have seen them being the only lenders out there giving loans to clear other debts.

StillWaters

orchidsrpretty wrote: »

I asked my CU for a loan to clear off a cc that wasnt too high(3k). Had a lot more than that in my saving and was refused as they said they don't give loans to clear other debt. Although they have no problems giving out loans for holidays and christmas etc.. Doesn't really make sense to me.

Why did you not withdraw savings to pay the cc? You are probably earning 1% on the savings, and paying 18% on the cc.

orchidsrpretty

I did in the end, but would of preferred to take a loan out as they don't seem to like people dipping into their savings, in my CU anyway.

deelite

orchidsrpretty wrote: »

I did in the end, but would of preferred to take a loan out as they don't seem to like people dipping into their savings, in my CU anyway.

We took money from our savings this year to help with Christmas rather than getting a loan. Like the other poster says why borrow at a 9% interest rate and only get 1% on your savings.

StillWaters

orchidsrpretty wrote: »

I did in the end, but would of preferred to take a loan out as they don't seem to like people dipping into their savings, in my CU anyway.

Course they don't, they make more on loan interest.