Can I borrow more on credit union loan?

varney

Hi Folks,

I'm sure everyone is feeling the pinch financially right now, so it's probably the worst time to approach the credit union?

I have a €5K loan from them which I'm paid up on. I'm about half way through a five year term on this paying €115 per month.

Myself and my wife's wages were cut down twice in 2009 ( government taxes, levies etc ), but we're still just about managing mortgage, credit card, my credit union payments as well as all the other day to day bills.

However, Christmas and a couple of problems with the car have completely drained myself and my wife financially.

I wanted to ask if you think the credit union to allow me to borrow some more on top of my existing loan with them? Around €2,000....?

I stopped saving with them when things began to get bad at the end of 2008. I still have €500 in the credit union which I believe I can't touch because I have a loan out with them. Would this still count for something as savings even though I've stopped making deposits?

I don't want to lie to the CU and tell them the loan is for home improvements, but at the same time how do I make an application ( if they'd even consider me, ) when the money is to try and give us some breathing space?

Has anyone been in a similar situation and how did they fare out?

Thanks,
Mike.

me_right_one

As far as I know, you can borrow 3 times your savings with them. If you only have 500, then they wont let you have more borrowings than 1500. You say you are halfway paid off on a 5K loan, so you owe 2500 ish, is that right? If so, you already have more borrowings than 1500, then its very unlikley they'll lend you any more.

romah

Mike

You are in a reasonably good position to apply for a top-up loan

You said that repayments were up to date having paid regularly for the last two years.... A BIG PLUS.

This should have given you a good record. You could ask for the loan for car repairs.

Tell the credit union you will start to save a little ..every week ..maybe €5..it all makes a difference..

Also .
.me right one..mentioned about 3 times savings..most credit unions tend to look at your ability to repay, your income and your past savings /loan history rather that multiplying your savings..

chris85

me_right_one wrote: »

As far as I know, you can borrow 3 times your savings with them. If you only have 500, then they wont let you have more borrowings than 1500. You say you are halfway paid off on a 5K loan, so you owe 2500 ish, is that right? If so, you already have more borrowings than 1500, then its very unlikley they'll lend you any more.

bit off there... ability to pay is main thing as the loan is granted based on this. It does matter about savings and so forth more than a regular bank.

OP as already said you have good history with them so they will consider it. THey will ask you to start saving again as the Credit Unions need deposits big time at the moment. Also its no harm for a few euros being put aside each week...

OP I know xmas was tough for everyone but dont get in habit of getting long term credit for short term cost. Budget for next xmas if possible. Your CU will be able to help a lot for this. They will help with budget and savings and everything. They are much more than a sometimes arrogant bank.

dellas1979

Last week I borrowed 4k with e56 is my credit union account. So that 3 times thing doesnt stand.

It seems more to be your ability to pay it back, which you will have a track record of with them anyways. I strongly agree with chris as said above, dont get into the habit of getting long term credit for short term cost - Id prefer to do without than get into debt over turkey and presents (I know you said youd car problems too, but if your car is costing you that much to repair, get rid of it)