Credit Union Loan

calgary bound

Hello,

Myself and my husband applied for a debt restructuring loan with the CU nearly 2 weeks go, €35k to tie up various small loans / overdrafts / credit card. We bought our home for cash last year and it fleeced us temporarily and we are trying to tidy that up.

Take home pay combined of €6500 a month, no mortgage - own our own home and 3 kids but 2 car loans of €500 a month - which won't be included in the restructuring.

Excellent credit rating and we have never missed a repayment over the years.

I went through an ordeal of a phone call with the underwriter, I felt like my life was being pulled apart! That was 2 days ago and I enquired today to be told it has gone to a senior underwriter now for assessment.

I am assuming it is a no?

Jim2007

The reality is that any standing you might have had in terms of being assessed for a loan under normal circumstances are gone - otherwise you would not be looking for a restructuring loan. So of course they are going to look very carefully at you and someone senior is going to have to sign off on such a loan. That is just how these things are done.

It does not mean that it is a no, but it does mean it may take some time before you get a response as it the decision will have to wind it's way through the firms processes.

calgary bound

Apologies, I think I used the wrong term - I meant a refinancing loan if that makes any difference. Instead of having a few smaller loans with higher interest rates, we wanted to combine them into a single repayment which has a better interest rate.

user302243

Obviously it's too late, but I'm confused as to how you bought a house with cash instead of paying of (I presume) much higher interest rate debt and taking out a mortgage.

Jim2007

https://www.boards.ie/discussion/comment/121863211#Comment_121863211

It does not matter you call it, the fact remains that you are unable or unwilling to meet the terms and conditions of the financial agreements you signed up to.

Remember the decision makers know very little about you beyond what you have provide them with and if they get it wrong it will come up in their performance review with their manager - why did you give a loan to someone who was already telling you they were having difficult pay down their loans? These decisions impact the loans officer/actuaries salary and career so naturally they are going to take the time to make sure they get it right.

So as I said before, it does not mean it is No at this stage. It is just going to take time for them to go through their processes and then you'll get a decision.

CrookedJack

https://www.boards.ie/discussion/2058339370/credit-union-loan

A couple of things to note - Your request being transferred to a senior underwriter means it's not a No as yet, a junior underwriter has reviewed and you've not failed that review. Not it's a more senior decision maker's turn to confirm that review. This is positive.

Secondly, you should perhaps try to take this process a bit less personally - you describe the CU phone call as an "ordeal" but this is just a financial company doing its due diligence, it is acting responsibly by trying to make sure you can repay the loan. This is in your interest, as well as in the interest of the other members. It should not be an emotional trauma to have to go through your finances when asking to borrow a significant amount of money.

Finally, a couple of days for a process like this is not really a long time - just be patient, if you can legitimately afford this loan then they'll likely give it to you. That is the whole point of Credit Unions after all

coylemj

https://www.boards.ie/discussion/comment/121864428#Comment_121864428

I think you're taking a very negative view of what the OP is trying to do. She said in her first post that she has an excellent credit rating and has never missed a payment. All she wants to do is consolidate her existing loans.

You might have missed her reponse to you in post #3. With your background in financial services, it seems to me that you latched on to the term she used in her first post: 'restructuring'. Which is the term typically used when loans are renegotiated and some or all of the lenders take a haircut but I don't think that's part of this plan at all. She has never suggested that she is in financial distress and unable to service her existing loans.

calgary bound

https://www.boards.ie/discussion/comment/121863239#Comment_121863239

We had - just about - 500k in cash, which was the price of the house we wanted and didn't need a mortgage / want a mortgage and all the associated hassle when applying. We had a few unfortunate delays and it ended up costing us unplanned money in rent as we had to rent short term to bridge the unplanned gap between selling and buying.

calgary bound

https://www.boards.ie/discussion/comment/121864428#Comment_121864428

I dispute the statement that I am unable / unwilling to meet the terms and conditions of the financial agreements I signed up to. We each have a personal loan, one credit card and one overdraft between us and we want to use the credit unions advertised refinancing loan option at 6.5% apr to consolidate them into one payment each month.