Credit Union Loan

WedAug15

Hi All

I am getting married in August and will need to take out a Credit Union Loan to top
up our savings - €10 K , at present I have no loan - my last loan I paid off last November.
I will have €4,000 in my savings when I apply - I am currently saving €600 a month comfortably with them. I am earning €30 k a year, and have €1200 disposable income every month,
I am hoping to get a loan of €10 k - Really my question is are credit unions lending large amounts such as €10 k.
I want to leave it as long as possible before I apply, as I want to build up my savings,
I did notice on the form it asks about your spouse - my Husband to be is a member, but
is currently unemployed, Will this affect my loan ?

I would Just like peoples thoughts or experiences with Credit Unions recently ?

Thanks

BuffyBot

WedAug15 wrote: »

Hi All

I am getting married in August and will need to take out a Credit Union Loan to top
up our savings - €10 K , at present I have no loan - my last loan I paid off last November.
I will have €4,000 in my savings when I apply - I am currently saving €600 a month comfortably with them. I am earning €30 k a year, and have €1200 disposable income every month,
I am hoping to get a loan of €10 k - Really my question is are credit unions lending large amounts such as €10 k.
I want to leave it as long as possible before I apply, as I want to build up my savings,
I did notice on the form it asks about your spouse - my Husband to be is a member, but
is currently unemployed, Will this affect my loan ?

I would Just like peoples thoughts or experiences with Credit Unions recently ?

Thanks

Each credit union is an individual body and will make it's own decisions. Alas no one can tell your for sure apart from your CU.

Toots

Just be aware that if you're applying for a large loan with the CU, they may require that some shares are frozen until the loan is paid off.

To give you an example when I got my first CU loan it was for €1500 and I had something like €700 in shares; when I got the loan, I could not access my shares until the balance outstanding on the loan was below the value of my shares. This might not happen in your case, but it's something to definitely check up, because I'm assuming you're hoping to use your loan and savings combined to have about €15k, so you don't want to end up with your €10k loan, but not able to touch the rest of your savings.

Good that you are saving as this is the key to unlocking a loan with a CU, providing your other finances are in good shape.

1) You should go to your CU asap and discuss your plans to borrow & seek an answer in principle, i.e. they will do X if you do Y

2) Whilst you may have €4k in the CU by the time you want to borrow, tell them now that you will be able to leave €1k or €2k there and see what they say. Many CU's today are more interested in your ability to repay than the level of shares join your account, and most CU's are awash with savings already

3) follow up your meeting with an email confirming what was agreed in principle, & then stick to it. Be careful to keep your bank account in good order, and try not to rely on a credit card. If you have to pay wedding bills by cr card, tell the CU in advance so they know to expect to see a bigger than average balance on the card

Good luck with it