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Credit Union Loans

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  • 15-02-2006 2:49pm
    #1
    RobEire
    Closed Accounts Posts: 90 ✭✭


    I have a quick question on this matter.

    I have had a credit union account for some years and have on occasion loaned small amounts of money against my savings.

    The question I have is this - I know that I can loan approximately 3 times what I have saved - does this rule still apply if the amount you have saved (or deposited into the account for that purpose) quite large? Is there a limit to how much the credit union will actually lend to you?


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    #2
    kellxor.1337
    Registered Users Posts: 317 ✭✭kellxor.1337


    Well My Aunt had around 65-70K in her acount and she was left borrow 150k, thats the largest amount I know of, You could just ask your credit union manager, You've been a customer there for a while and with a large sum deposited, He'll see you pretty quickly and i'm sure he'll tell you how much you can borrow,



    Kellxor


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    #3
    Carb
    Registered Users Posts: 831 ✭✭✭Carb


    I borrowed €16,000 when I only had €150 in my account. My family and I all had a good history with them, which helps. Every Credit Union is different.


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    #4
    drdre
    Closed Accounts Posts: 8,245 ✭✭✭drdre


    yeah credit unions are great, but the only problem is did you know the interest rate they charge no!!
    its nearly 11% where as a bank is way cheaper.


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    #5
    L5
    Closed Accounts Posts: 2,951 ✭✭✭L5


    credit union loans operate on a declining balance interest rate. as in, you can pay a large sum at once and this will reduce your interest payments accordingly. Most bank loans you could pay the lot off the next day, but you'd still pay the full interest for the term of the loan.


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    #6
    Owen
    Registered Users Posts: 12,683 ✭✭✭✭Owen


    From my experience, Credit Union loans are a monumental rip off. Yes, they consider circumstances banks won't, but by God will they charge you for it. Anyone borrowing money and looking at APRs is making a rather foolish mistake. I deal with car finance every day of the week, and it always makes me chuckle when someone asks for APR.

    Primafinance.ie will show you what an APR acually means. Bugger all. I can se a very low APR on a loan, up the documentation fees to a few hundred, and although the APR looks like 5%, the monthly payments are larger than with a 7% APR and lower documentation fees.

    At the end of the day, if you're borrowing money, to understand the value you're getting you need to ask three questions :

    1. What's the Documentation Fee?
    2. How much am I paying per Thousand?
    3. What will my monthly repayments be?

    If you compare those questions, you'll get a sense of true value. Don't be a bit afraid to haggle either. I have customers all the time who can haggle with me, and their banks, and get the rate significantly down from the Initial Enquiry.

    HTH

    Owen.


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