Credit Union loans

FledNanders

Does anyone know, when the balance of your loan with a Credit Union is lower than your savings, can you simply use your savings to pay off the balance of the loan?

EG if the balance of your loan is €3k and you have €4k savings, can you just pay the lot off in one go and leave €1k savings there? Are there any implications for doing this?

stepbar

FledNanders wrote: »

Does anyone know, when the balance of your loan with a Credit Union is lower than your savings, can you simply use your savings to pay off the balance of the loan?

EG if the balance of your loan is €3k and you have €4k savings, can you just pay the lot off in one go and leave €1k savings there? Are there any implications for doing this?

I don't see why not. Pay it off if you want that's unless you want to borrow more money in the future as the CU usually work off what you have saved as an indication of what you can borrow.

enviro

Yes you can with no penalty.

"Because credit unions represent the members who save and borrow with them, you’ll find your credit union is very flexible. Your credit union can help you choose a repayment plan which suits you. If your circumstances change and you want to alter your repayment plan, your credit union is there to help you. It’s also worth remembering that you can repay your loan in full, at any time, without any penalty or additional charges"

http://www.creditunion.ie/whatweoffer/loans/#d.en.97

bills

yes you can but its does affect you for future borrowing because you have withdrawan a large chunk of your shares.