Speaking to the Credit Union Credit Committee

MommySquish

Ok. so, I took a loan of 1000 out in September 2014 against my savings of 1200. I made two payments of 25 each and then nothing until 2 weeks ago where I paid off 700 and then the balance with my savings. last week I deposited 736 and requested a loan of 4500 for wedding expenses, my savings being 1700.

They've asked I come into the credit commity tomorrow night and I'm really anxious. I'm wondering has anyone had experience with these meetings, what can I say to push it in my favour. I don't need a lecture, I know I wasn't the best, I'm just looking for some advice. I'm assuming they're not dead set against me having the loan as they would have outright said no.

also I've set up a standing order for them for 30 per week which covers the loan and then some if its successful.

phormium

No direct experience but can imagine what they want is ensure that regular payments are going to be made if they give you the loan. Not paying regular agreed payments is a big no no, yes your loan was covered by savings but unless you had agreement to just pay it back in lump sums then you broke the normal system of repayments. A CU makes it's money from interest and regular repayments is an important part of the system so they can predict income etc.

The CC want to be sure they are not going to have to chase you every month to make your repayments, you have blotted your copybook slightly I would think so you would want a good explanation and assurance that you have it sorted for any future lending.

MommySquish

Absolutely. I completely understand that. I have an answer for them, with work being hectic (2 staff members out of 5 being long term ill and they're not being replaced) and always thinking 'I'll get there next week', now I'm aware this isn't an excuse, but it is the reasoning.

I'm thinking if I print out a page from the bank showing my standing order perhaps? Might look good?

I do appreciate your help and lack of lecture!

chrysagon

I had experience in that..at least, like me u paid of the loan, they just wanted me to pay off the loan weekly/ bi weekly, just more regular than i did, that was all.

MommySquish

hopefully. I have a standing order set up for 40 per week on a Thursday starting this Thursday. I'm going to print a screen shot of it and bring it with me.

how did your meeting go?

chrysagon

went fine.. as i said , once i paid it, they were happy, it was very informal, and actually informative to be fair, they just asked if i could pay weekly, i was too lazy at the time, to be going in every week, a DD would have sorted it.
remember credit unions make their money from loans.

dellas1979

MommySquish wrote: »

Absolutely. I completely understand that. I have an answer for them, with work being hectic (2 staff members out of 5 being long term ill and they're not being replaced) and always thinking 'I'll get there next week', now I'm aware this isn't an excuse, but it is the reasoning.

I'm thinking if I print out a page from the bank showing my standing order perhaps? Might look good?

I do appreciate your help and lack of lecture!

Sounds like the practicalities of it werent sorted last time (i.e., no standing order set up), so youd to do it manually. And yep, its just means having to remember to do it.

On the other side, missing loan payments could show on your ICB records. So, I think you should keep this in mind too. Perhaps enquire.

MommySquish

well I should know tomorrow night.

dellas1979

MommySquish wrote: »

well I should know tomorrow night.

yes, so youve said.

TrishSimon

MommySquish wrote: »

Ok. so, I took a loan of 1000 out in September 2014 against my savings of 1200. I made two payments of 25 each and then nothing until 2 weeks ago where I paid off 700 and then the balance with my savings. last week I deposited 736 and requested a loan of 4500 for wedding expenses, my savings being 1700.

They've asked I come into the credit commity tomorrow night and I'm really anxious. I'm wondering has anyone had experience with these meetings, what can I say to push it in my favour. I don't need a lecture, I know I wasn't the best, I'm just looking for some advice. I'm assuming they're not dead set against me having the loan as they would have outright said no.

also I've set up a standing order for them for 30 per week which covers the loan and then some if its successful.

They are probably calling you in and will tell you that your payments and transactions with the CU are erratic and they would like you to become more regular with deposits and be more responsible when it comes to paying off loans, remember the CU are now registered with the ICB so the last thing you want is to have your name sent there for a missed payment.
They are probably just going to advise you on how to save in a better pattern and to ensure you will pay back the loan, I wouldn't be too worried they just dont like when you take a loan and then pay back in chunks rather then each week / month.
I only use the CU now I wont touch a bank for anything.

MommySquish

hopefully! I'm very anxious, I just get nervous and stress about everything. I'll let you know how it goes anyway.

chrysagon

no need... treat it as an informal meet.

MommySquish

Thank you so much, I'm sitting in the waiting room one in front of me and I honestly feel like I'm gonna throw up! Feels more like a death sentence really.

chrysagon

MommySquish wrote: »

Thank you so much, I'm sitting in the waiting room one in front of me and I honestly feel like I'm gonna throw up! Feels more like a death sentence really.

relax

MommySquish

ok. So they wouldn't give me an answer tonight. I have to wait til tomorrow. basically I was in arears of 17 weeks, then came in and paid 700 and paid the rest with shares. I understand its not the best record and not a great start. I provided proof of the standing order with the bank. I'm feeling even worse now. I wish I could have just been told.

chrysagon

They have to go through the procedures

MommySquish

I understand. Still feeling like I'm going to vomit.

MommySquish

They've just called and approved the loan. I want to say thanks to everyone here for being so kind.

phormium

Good news! Make sure you keep your record squeaky clean this time

MommySquish

Don't worry! it will be so clean I'll have a reflection. 😆 There isn't an excuse, I was given a second chance.