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Credit Union Loan

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  • 02-12-2009 8:43pm
    #1
    Slippin Jimmy
    Registered Users Posts: 6,031 ✭✭✭


    I am looking to get a loan from the credit union. I will need this in about four months. I have been looking on their website but there is not much information as to requiremenst for loans. I basically need €4000. I have less than €100 in the account at the moment. What I am planning on doing is to put away about €70 a week into my account and hopefully build up enough for a loan. I am unemployed at the moment but am getting €160 a week. What are my chances of getting a loan?


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    #2
    scudzilla
    Registered Users Posts: 11,932 ✭✭✭✭scudzilla


    Duffff-Man wrote: »
    I am looking to get a loan from the credit union. I will need this in about four months. I have been looking on their website but there is not much information as to requiremenst for loans. I basically need €4000. I have less than €100 in the account at the moment. What I am planning on doing is to put away about €70 a week into my account and hopefully build up enough for a loan. I am unemployed at the moment but am getting €160 a week. What are my chances of getting a loan?

    Doubtful, normally it's 2-3 times what ya have in savings

    http://www.boards.ie/vbulletin/showthread.php?t=170054


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    #3
    jimoc
    Registered Users Posts: 634 ✭✭✭jimoc


    The credit unions have lately been clamping down on the requirements to get a loan. Whereas previously you could borrow 4-5 times your savings, this was at the discretion of the credit union's own credit committee, who decide on the loans. However due to a lot of fraud and non-payers this has now been mostly stopped in most credit unions.

    If you are well known to the committee members you have more chance of getting a loan, but given the fact that you only have 100 in there it looks as if you don't have a history of saving which can also go against you as well.

    The fact that you are currently unemployed and only getting 160 a week will also affect the size of a loan you can get as they will not give you a loan that will take the total amount of your repayments for all borrowings to over 35% of your income.

    Another consideration is that unless the loan is for home improvements or a car the term of the loan will be very short.

    But its still worth applying for, all they can do is turn you down.


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    #4
    Slippin Jimmy
    Registered Users Posts: 6,031 ✭✭✭Slippin Jimmy


    Thanks for your replys guys. I did have previous savings with them of over 3k. I have never had a loan so I was going to get my uncle to go as gurantor for my loan. Hopefully I will be able to get this as I do really really need it.


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    #5
    suey71
    Closed Accounts Posts: 805 ✭✭✭suey71


    Apply for a small loan now and repay it in 10 weeks, while still putting money into your savings. Then reapply for another small loan and repay it in 10 weeks, while still saving. You have now built yourself a reputation as a good payer.
    Then apply for your 4000.

    Best of luck.


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    #6
    Slippin Jimmy
    Registered Users Posts: 6,031 ✭✭✭Slippin Jimmy


    suey71 wrote: »
    Apply for a small loan now and repay it in 10 weeks, while still putting money into your savings. Then reapply for another small loan and repay it in 10 weeks, while still saving. You have now built yourself a reputation as a good payer.
    Then apply for your 4000.

    Best of luck.

    If I took out a loan of €200, would that be enough or would it have to be of higher value?


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    #7
    pebbles21
    Registered Users Posts: 1,817 ✭✭✭pebbles21


    Duffff-Man wrote: »
    If I took out a loan of €200, would that be enough or would it have to be of higher value?

    This is fine but pay back €25 a week plus interest and put another €50 a week in savings ,this means that will be paid back after 8 weeks and you will have €500 in savings

    Then apply for another loan of €600 and if you can afford to, repay €75 plus interest per week plus €50 in shares and after the 8 weeks thats paid off and you have €900 in savings

    Now that you have some kind of record with them and they see you also have saved as well,this put you in a very good position to go for the €4000

    Btw maybe you shouldnt tell them your unemployed ;)


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    #8
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Forum Charter wrote:
    *Dishonest dealings
    Don't ask how to get around repaying debts/defaulting/giving false information for loans etc - basically if it's not above board, and legal, it's not allowed.

    Need I say more.


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    #9
    suey71
    Closed Accounts Posts: 805 ✭✭✭suey71


    Catch 22 situation here.

    I'd say be honest. Tell them that you'll pay it back over 3 or 4 years.
    Thats about 30euro per week plus you still have to save, its what they like. You can clear it off sooner with the savings that you have built up over the 3-4 years.

    If you tell them that you're working they will ask for proof of earnings.

    Go and ask a cashier do they give out loans to people that are unemployed before you commit to applying for a loan.

    But even if you are refused, keep saving and reapply in a short while, then they'll realise you take the CC seriously.

    They are really helpful.


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