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need advice ( credit union loan )

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  • 04-08-2010 10:06pm
    #1
    PEACEBROTHER
    Registered Users Posts: 1,149 ✭✭✭


    Ok here is my situation......
    I have loan with bank of ireland only 10 months to go on it ( originally 6 k )
    Now i want to get loan of maybe 8 or 9k from credit union to
    A. Clear this loan
    B. Buy car (2005-2008 in that range )
    C. Party time !!
    Im in full time employment and am saving 80 a week with credit union although its only been for last 8 weeks since i became a member

    Can some one help and let me know if there is better way to go about this or will CU even give me the loan

    Thanks and regards


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    #2
    jethrothe2nd
    Registered Users Posts: 579 ✭✭✭jethrothe2nd


    C. Party time !!


    I would think very carefully before funding your social life with a loan. It is going to end up costing you a lot of money, and the only thing you will see for it are several hangovers.

    My advice - forget about getting another loan. Pay off your existing loan, then, if your situation allows, save like good f*** for a few months to buy a car.It'll save you a lot in the long term.


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    #3
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    To the best of my knowledge, your first loan with the CU the maximum is for the amount that you have in the CU. The second loan is then 3 times the amount you have in shares. Ask your credit union what there policy is on loans as some differ to others


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    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    PEACEBROTHER wrote: »
    A. Clear this loan
    Why?
    PEACEBROTHER wrote: »
    B. Buy car (2005-2008 in that range )
    If you can't afford it, you shouldn't be borrowing for it. Buy a car you can afford with your savings. When it comes to buying a car, the maximum you should ever borrow is about 50% of the purchase price.
    PEACEBROTHER wrote: »
    C. Party time !!
    And people blame banks for the problems:rolleyes:

    Listen, you have been saving €80 a week for 8 weeks. That's baby stuff. Come back when you have been maintaining that saving rate for a few years and you can then consider whether or not to indulge in luxuries.


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    #5
    PEACEBROTHER
    Registered Users Posts: 1,149 ✭✭✭PEACEBROTHER


    All comments are true to my situation,

    But problem is I really need car and im kind of in a hurry to get ,
    I can afford car but just not great at saving but i can pay for loan
    Hope this makes sense


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    #6
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    PEACEBROTHER wrote: »
    All comments are true to my situation,

    But problem is I really need car and im kind of in a hurry to get ,
    I can afford car but just not great at saving but i can pay for loan
    Hope this makes sense

    keep paying your loan with BOI. try get a loan off CU for the car. you will need to save a bit more with them to be getting what you want unless you can provide a guarantor (who is preferably a member with the CU).

    Also party time!!! seriously, what age are you? I wouldnt lead with that reason to the CU.


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    #7
    purpur1
    Registered Users Posts: 239 ✭✭purpur1


    PEACEBROTHER wrote: »
    Ok here is my situation......
    I have loan with bank of ireland only 10 months to go on it ( originally 6 k )
    Now i want to get loan of maybe 8 or 9k from credit union to
    A. Clear this loan
    B. Buy car (2005-2008 in that range )
    C. Party time !!
    Im in full time employment and am saving 80 a week with credit union although its only been for last 8 weeks since i became a member

    Can some one help and let me know if there is better way to go about this or will CU even give me the loan

    Thanks and regards

    There's strict policys on the amount you can get with the CU for your first few loans.
    Also, the CU charge interest on a reducing balance, basically the higher the loan you seek, the higher the interest. This comes down as the loan principal reduces. Have a look at the APR table on the inside of your book. You might actually be better off holding on to the BOI loan and using your savings for a car and party time. Compare the interest - sometimes it actually works out cheaper.


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    #8
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    PEACEBROTHER wrote: »
    But problem is I really need car and im kind of in a hurry to get ,

    Get something cheaper. It doesn't look like you can manage your finances well enough to afford to be spending €6-7k on a car.

    If there's only 10 months left on the BOI loan, you should just let it run out, or just clear it with savings when you have enough to do that. Clearing 1 loan by taking out another is not a very good idea when the first loan is almost done.
    PEACEBROTHER wrote: »
    I can afford car but just not great at saving but i can pay for loan

    You're going at this all wrong. Sort your ability to save, and you won't have to get so many loans. Loans are not the solution to money management problems.

    At 8 weeks in the CU they're not going to loan you €8k, so this is all academic. If you've a good history with the bank, and you have a pressing need for a car, then maybe consider a small extension on your current loan (€2-3k) to buy a cheaper car. You should be able to clear than in a year or two.

    Borrowing money for "party time" is probably one of the stupidest things you could do. Get that idea out of your head right now, you'll be far better off for it.


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    #9
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    Another option is staving off on the big loan for a while, with the 640 euro you have in the Credit union at the moment, take out a loan for 640 euro, then pop 40 a week plus the interest towards that loan while at the same time putting the remainder in to your shares/account, then by Christmas you will have a decent amount in the Credit Union and your first loan with the Credit Union would have been paid off by october/november, thus leaving you with a healthy amount to get your second loan of the Credit Union which is now allowed to be 3 times the amount you have in shares. I can't see the Credit Union giving you 8k with such a small amount in shares there on your first loan with them.


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    #10
    dellas1979
    Closed Accounts Posts: 4,128 ✭✭✭dellas1979


    PEACEBROTHER wrote: »
    Ok here is my situation......
    I have loan with bank of ireland only 10 months to go on it ( originally 6 k )
    Now i want to get loan of maybe 8 or 9k from credit union to
    A. Clear this loan
    B. Buy car (2005-2008 in that range )
    C. Party time !!
    Im in full time employment and am saving 80 a week with credit union although its only been for last 8 weeks since i became a member

    Can some one help and let me know if there is better way to go about this or will CU even give me the loan

    Thanks and regards

    Erm, how badly do you need the car?

    Why does it have to be 05-08?

    You seem capable of paying back loans, but why would you want to get yourself into a lot of debt again on part-time wages? Could you not get a car for 1K for example?


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    #11
    PEACEBROTHER
    Registered Users Posts: 1,149 ✭✭✭PEACEBROTHER


    dellas1979 wrote: »
    Erm, how badly do you need the car?

    Why does it have to be 05-08?

    You seem capable of paying back loans, but why would you want to get yourself into a lot of debt again on part-time wages? Could you not get a car for 1K for example?


    I badly badly need car ,
    Reason It has to be 05 or over is because i Have too much trouble with older cars and just want a car thats reliable and that will last,

    Now , Im not part time wages at all, im working a 39hour week with option to overtime every week
    So paying 60 -70 euro a week via direct debit will be no prob
    Just wondering where is best place to get loan and most likely place that will give me loan

    Cheers:p


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    #12
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    PEACEBROTHER wrote: »
    I badly badly need car ,
    Reason It has to be 05 or over is because i Have too much trouble with older cars and just want a car thats reliable and that will last,

    Now , Im not part time wages at all, im working a 39hour week with option to overtime every week
    So paying 60 -70 euro a week via direct debit will be no prob
    Just wondering where is best place to get loan and most likely place that will give me loan

    Cheers:p

    save for few more months with the CU and then apply or speak to them in there and ask them what you need to do to get the loan. they will probably advise you of your best way to do it.

    Also get money for the car and its fine getting a 2005 if you can afford it. But dont get any money for socialising, its not good practice to do so.


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