Chances of a Credit Union Loan

JohnJoeRambo

Howdy,

I have been saving with Credit union just over a year and have 3500 in savings.
I am wanting to get a loan (approx 10k - 12k) to do some work around our house(fencing) / get another car and buy some bits. Should I explain this to them or just mention home improvements?
Will it go against me if I am looking to use money borrowed for multiple reasons?
I will be looking for personal loan - I am hoping they won't need proof of what I am buying but will they need to see proof of what I am buying?? as I am reading some people that get car loans with credit unions don't get a cheque until they have invoice from dealer etc. but this is for a Car Loan, not personal loan.

Also what are the chances of getting 10k / 12k loan with savings of 3500.
Have my own house and I work full time earning 45k a year
have a bank loan that has 2500 left and credit card with about 700 on it.

I know each Credit union varies slightly and I won't know for sure till going in but just seeing if anyone has any dealings / ideas on this scenario!
Are my chances slim or possible?

Cheers

CIARAN_BOYLE

different credit unions different rules.

most credit unions will be more likely to give you a loan if your savings has accumulated in a regular fashion rather than you lodging a lump sum.

JohnJoeRambo

CIARAN_BOYLE wrote: »

different credit unions different rules.

most credit unions will be more likely to give you a loan if your savings has accumulated in a regular fashion rather than you lodging a lump sum.

That's grand as I've been going in every week saving.
The odd time every 2nd week but lodging between 200 - 500 monthly

ike

I wouldn't mention about multiple uses for the money just say its for home improvements. Unless they have very strict rules they won't ask for specifics.

As said every CU is different but I couldn't see you having any problem getting the money. A few years ago I got €19k from mine with about €3 in saving (having a public service job always helps).

Also it might be a chance to consolidate all your loans (Bank & Credit Card) with a single CU loan. I realise the bank rate may be preferable than the CU rate, but the ability to pay off a CU loan without penalty is what I like about the CU.

JohnJoeRambo

ike wrote: »

I wouldn't mention about multiple uses for the money just say its for home improvements. Unless they have very strict rules they won't ask for specifics.

As said every CU is different but I couldn't see you having any problem getting the money. A few years ago I got €19k from mine with about €3 in saving (having a public service job always helps).

Also it might be a chance to consolidate all your loans (Bank & Credit Card) with a single CU loan. I realise the bank rate may be preferable than the CU rate, but the ability to pay off a CU loan without penalty is what I like about the CU.

Cheers Ike, Yeah thought just mentioning home improvements might be the way to go, as long as they don't go into it, if they do it's grand as long as they don't go looking for companies doing the work etc!
Yeah I probably would also be paying off the 2 n half grand bank loan with it, depending how much they are willing to give me.
The paying off early without penalty and being able to just walk in and throw money off the loan whenever I feel like it is the attraction for me as I will be paying it off early and also knowing I still have my savings when it's paid off also.

Will I be able to use my savings also or will they freeze my savings until loan is paid?
Or might I have the option and have a lower interest rate if I freeze my account till loan is paid?

Cheers

ike

Yes your savings will be frozen until the loan is cleared or at least until the loan is less than your savings.

If you can keep throwing that €500 against the loan instead of savings then you'll be clear in a little over 2 years.

CarrickMcJoe

I would be surprised if you were turned down. The reason for them wanting to see an invoice for car is the interest rate is lower for car loans.
The Credit Union can't survive without giving loans, they just have to run everything past the financial regulator.

JohnJoeRambo

Cheers for the info so far guys,

I'll go in and enquire over the weekend possibly.
Shall I just go in and ask at the desk or ring prior? I guess an appointment will need to be made?

BuffyBot

Generally Credit Union's are fine with you just dropping in, but without sounding like a broken record: every CU is different. Your CU will tell you what's works for them.

JohnJoeRambo

With regards to the length you have to pay off,

On personal loan, the calculator on the CU site for my locality there is option for 1 to 10 years.

The norm is usually max 5 years on loans but here it seems you can extend more,
Has anyone ever had issues trying to have the term over more than 5 years?

My idea is to go 7 years to keep the min monthly payments lower and I'll go in and pay off extra's here and there each month and have it paid off early,
Interest paid is higher the longer the terms but I'd be looking to pay it off early anyway so won't be paying the full interest amount.

JohnJoeRambo

Got approval,

Thanks for all the replies n info

Cheers

SteveK845

Hi guys Im just asking for a quick opinion!
I too am looking to apply for a loan at the end of the month. My financial situation is good bringing in at least €1300 every 2 weeks rising to 2 grand. I've €5000 in shares in the cu and will hope to have €7000 in the bank. Il be applying for 13/14000 everyone I've talked to says il walk out with it, I'm not so sure, my gut feeling says no! Think it's because I'm only 20, thoughts?