Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

First time loan from CU

Options
  • 18-06-2013 1:20pm
    #1
    kaki
    Registered Users Posts: 674 ✭✭✭


    Hi all,

    I'm heading into my CU tonight to ask for my first ever loan, I wanted to bounce the idea around in this forum so I have an idea of what to expect.

    The purpose of the loan is to fund my wedding, which is coming in at around €10,000. I already have approx €12000 in savings, but as we're hoping to apply for a mortgage next year and don't have any credit cards, we wanted to use the opportunity to improve my credit rating by taking out a short term loan (6 months) to show that we are able to repay.

    Would it be possible for instance to withdraw €7000 in savings, and then request a €3000 loan based on the €4000 remaining savings? I have the impression that CU's look a bit dimly on this as they prefer you to leave all your savings intact and request a loan for the full amount.

    Any related experience welcome, don't particularly want to go into the CU blind!
    Tagged:


Comments

  • Options
    #2
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    Repaying a guaranteed loan(loan of 3k, against savings of 4k) wont improve anything credit rating wise. Similarly it wont harm your credit rating if you miss or are late with payments.

    Other than that, you wont have any issues borrowing if its within your shares.


  • Options
    #3
    kaki
    Registered Users Posts: 674 ✭✭✭kaki


    Cheers for replying Anyone.

    Glad I asked.

    Just to clarify, would applying for a €10000 loan have no impact negative or positive on my credit rating? I assume not, as it is secured by my savings


  • Options
    #4
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    kaki wrote: »
    Cheers for replying Anyone.

    Glad I asked.

    Just to clarify, would applying for a €10000 loan have no impact negative or positive on my credit rating? I assume not, as it is secured by my savings

    It depends, if you have been transferring money into the CU via standing order or online, your bank will want to see statements when you apply for the mortgage. A 10k loan wont help your mortgage application, even if its secured with savings.


  • Options
    #5
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Yes of course borrowing 10k and paying it back on a regular weekly/monthly basis will have a huge plus on your repayment capacity when applying for a mortgage.
    You should not miss repayments as it will impact when applying for a mortgage. If you borrow the full 10k you can clear the balance when applying for mortgage by offsetting savings against the balance on the loan.

    Best of luck.


Advertisement