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Credit union loans

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  • 27-08-2017 3:30pm
    #1
    zialty
    Registered Users Posts: 5 ✭


    Sorry..i didnt know where to post this and i just made the account .. but with credit union loans.. i understand you need a certain amount in the account as deposit. i have 2,400 in my account now...it was only direct debited there in the past 6 weeks. Although ive had an account since i was a child, i never fully saved there. i would leave in lumps sums and then slowly take it all out and leave about 20 euro in it. but now i really need a loan..i need about 3k.. would i qualify? or should there be a longer period of direct debiting ? also with repaying.. should i go in to pay..or can i set up that they remove the money each week from my account?
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    #2
    fineso.mom
    Registered Users Posts: 1,092 ✭✭✭fineso.mom


    zialty wrote: »
    Sorry..i didnt know where to post this and i just made the account .. but with credit union loans.. i understand you need a certain amount in the account as deposit. i have 2,400 in my account now...it was only direct debited there in the past 6 weeks. Although ive had an account since i was a child, i never fully saved there. i would leave in lumps sums and then slowly take it all out and leave about 20 euro in it. but now i really need a loan..i need about 3k.. would i qualify? or should there be a longer period of direct debiting ? also with repaying.. should i go in to pay..or can i set up that they remove the money each week from my account?
    Nowadays it's more about your ability to pay it back than how long you've been saving. You'll be asked to bring in recent payslips and bank statements. Also,I was told that I needed 10% of the loan in savings..so 500e for a loan of 5000.


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    #3
    JPCN1
    Registered Users Posts: 887 ✭✭✭JPCN1


    AFIK you can borrow twice the amount you have with them but you can't reduce until loan paid.

    Great service and much easier to deal with rather than the main banks.


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    #4
    fineso.mom
    Registered Users Posts: 1,092 ✭✭✭fineso.mom


    fineso.mom wrote: »
    Nowadays it's more about your ability to pay it back than how long you've been saving. You'll be asked to bring in recent payslips and bank statements. Also,I was told that I needed 10% of the loan in savings..so 500e for a loan of 5000.

    And a standing order from your bank to repay is fine.


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    #5
    zialty
    Registered Users Posts: 5 ✭zialty


    thnx for you reply.. but also i know they freeze your money.. is that all your savings they freeze? and can i pay back the loan through my credit union savings.. like lets say i could have a loan of 3k or 3.5k and theres 2k in my account.. is there an option for them to use these savings as repay for a while?


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    #6
    zialty
    Registered Users Posts: 5 ✭zialty


    I'll look into AFIK, thank you


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    #7
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    zialty wrote: »
    thnx for you reply.. but also i know they freeze your money.. is that all your savings they freeze? and can i pay back the loan through my credit union savings.. like lets say i could have a loan of 3k or 3.5k and theres 2k in my account.. is there an option for them to use these savings as repay for a while?


    Generally, no.

    With the majority of CU's, your savings are locked against the loan as security. You can only touch your savings if you ask in advance and it's a special circumstance (sudden illness, etc. that means you've no money) but it'd be very rare.

    The only time you can get a CU loan on the spot without any forms, or touch your savings whilst having a loan, is if your savings are greater than the amount of a loan that you're looking for.

    (ie; if you have 2k saved, and borrow 1k, you can take out your savings until they match the loan, but they can never go lower than the loan.


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    #8
    fineso.mom
    Registered Users Posts: 1,092 ✭✭✭fineso.mom


    zialty wrote: »
    thnx for you reply.. but also i know they freeze your money.. is that all your savings they freeze? and can i pay back the loan through my credit union savings.. like lets say i could have a loan of 3k or 3.5k and theres 2k in my account.. is there an option for them to use these savings as repay for a while?

    They're don't necessarily freeze all of your savings. Say you have 500 euro saved and get loan for 3000, they freeze the 500 savings. But you can continue to save and pay back the loan at the same time. If your repayments are 40 euro a week ,you can lodge 40 to your loan and 10/20/30 (whatever)to your savings. Anything above your initial savings that the loan was based on ,is yours -as long as you're up to date with the loan repayments. You just have to specify which account the money is going to when lodging it.
    That's how mine works anyway.
    I don't know about the second part of your question.


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    #9
    zialty
    Registered Users Posts: 5 ✭zialty


    thank you everyone for your replies..im going to go in this week, i hope its not difficult to get. out of my whole friend group and majority of family member...not ONE has had a C.U loan or knows anything of it. i hope its not too strict.. :/


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    #10
    bigronnie9
    Registered Users Posts: 509 ✭✭✭bigronnie9


    If you are taking out a loan for less than or equal to the amount you have saved, you can get a secured loan which has a great interest rate, but they will lock down the savings so you can't take them out. The plus side besides the low interest rate is that this can be done in one visit once you have photo ID with you.

    If its a standard loan as mentioned previously you might need to demonstrate your repayment capacity, but is still straighforward


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