getting a credit union loan with bad credit history

artvanderlay · 13-03-2018 1:35pm #1

Hi there,

Maybe somebody could advise: I am looking to get a loan between 5-10k from a credit union, but I have an outstanding loan with AIB that I am paying reduced nominal payments on, and have a bad credit history as a result. My brother has offered to act as guarantor on a new loan (he is a home owner, no mortgage, working) but would that be enough to get approval?

Thanks a lot.

schemingbohemia · 13-03-2018 1:37pm

What savings do you have in the credit union?

artvanderlay · 13-03-2018 1:48pm

None. I'd be opening an account from scratch. I moved from Dublin to the West, and owe a credit union in Dublin 1,300 (on reduced payments paying 30 per month). I'd use some money from a new loan to clear this.

I know it looks bad that I would only be opening a credit union account now to get access to a loan, but if my brother acts as guarantor, I'm hoping they might be able to help.

I should say that my wife had an accident a few years ago and I ended up her carer for the past few years (both on benefits - disability and carers). We worked and had good credit ratings until her accidents. We are still waiting for her personal injury claim to come to court and it's dragging on for years. I need the money for vital medical and legal expenses, a small car, and some breathing space.

From my understanding a guarantor basically means if I can't pay the loan then my brother has to, so there is very little risk for the C.U.? Is this corrent? I will have no problem paying this new loan as we are surviving okay at the moment. I am on reduced loan payments with the bank for my existing loan because they understand my difficult personal circumstances, and I have assured them I will settle my outstanding debt in full when we settle our personal injury claim and they are happy with that.

phormium · 13-03-2018 7:16pm

Does your brother have an account with that credit union? They are more likely to do it if he has an account with savings in it that they can put a hold on until your loan is paid back. Just the fact that he has a job does not mean there is no risk for the credit union, he might decide not to bother paying it!

artvanderlay · 13-03-2018 10:45pm

He doesn't have any savings in the credit union I would be contacting. He lives in a different part of the country. I might just leave it, it doesn't look like it's likely they will loan to me.

punisher5112 · 13-03-2018 10:49pm

Can't see them lending to be honest.

They have become very strict and want bank account details and statements.

They will be able to see you have a credit union account already elsewhere and they ask this in the terms of loan.

Could you not try and extend one of the loans you have already? May not be possible as your status you mentioned.

artvanderlay · 13-03-2018 10:52pm

Yeah, I was thinking about asking the credit union I already have the loan with, but that's up in Dublin and I no longer live there, so not sure if that would work. I can ask and expect a no

Thanks for replying.

punisher5112 · 13-03-2018 10:59pm

artvanderlay wrote: »

Yeah, I was thinking about asking the credit union I already have the loan with, but that's up in Dublin and I no longer live there, so not sure if that would work. I can ask and expect a no

Thanks for replying.

Always a possibility and no harm in asking.

Wonder could you transfer to one closer to you. Not sure on that though.

Nothing stopping you opening a new one and try put a few quid in as often as possible to build up a bit.

getting a credit union loan with bad credit history

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