Nervous about asking the Credit Union for a loan

DeadMoney

Hi, I am applying for a loan with my local credit union next week and they told me just to call in with some bank statements from another account to apply. It seems very casual and the woman working there even said that they may tell me there and then whether or not I have been approved. The loan amount is 3k and I have just over 600 saved in there so I am getting the maximum loan possible for my savings (5 times savings). I am just out of college and am not working but am waiting on social welfare claim so they also need a letter from the social welfare office to show this. Since I am living at home and not paying rent, they said that the proof of social welfare would be adequate and obviously I am searching for a degree related job also. I am just a little nervous about calling in next week as I don't want to make a mess of it and not get the loan.

My friends recently got a loan for a holiday and they approved it on the spot but his loan amount was only like twice his savings. I was hoping to have more saved by now but really need the loan soon so have to go with it now. Anyway just wondering if anybody had any tips to take on board before going in to apply. Like certain questions that they may ask for somebody in my situation. I have applied for a few jobs to the college careers service, I was thinking maybe of printing off some emails to show them that I am looking for real work? I just really want to give myself the best opportunity of being approved but don't want to come off too needy. Also, does anyone know if they do not approve you, can you re-apply for a smaller amount?

Thanks

unclebill98

Tbh if they give you a loan of that amount and your on social it would be very irresponsible of them to do so.

The question will be simple so don't worry about it. Maybe ask for less to make the loan more appealing for them. Yes, if it's declined you could seek a smaller amount but the refusal reason will be key to see if this is a worth while thing to do.

Normally they loan is not approved on the day so it will be different for member to member.

What's the loan purpose? Car, holidays or travel etc?

DeadMoney

unclebill98 wrote: »

Tbh if they give you a loan of that amount and your on social it would be very irresponsible of them to do so.

The question will be simple so don't worry about it. Maybe ask for less to make the loan more appealing for them. Yes, if it's declined you could seek a smaller amount but the refusal reason will be key to see if this is a worth while thing to do.

Normally they loan is not approved on the day so it will be different for member to member.

What's the loan purpose? Car, holidays or travel etc?

Loan is for car and job seeking. I have a direct debit of money going in to the credit union every week so the member of staff I spoke with the other day thought that this looks good. Yeah I'd like to ask for a smaller amount but I need the full 3k unfortunately. I can also get a guarantor if need be although I would prefer not to have to. My friend got a loan a few months back to go to Australia for a month to play music and he stated his income as playing gigs so they were pretty relaxed to give him a loan. I guess I'll just have to see how it goes.

unclebill98

You social welfare payment is meant to help you live on. Not to pay for a loan.

So they may do an application based on some other source of income if any. A guarantor is only good if you default but you must be able to stand on your own two feet first.

DeadMoney

unclebill98 wrote: »

You social welfare payment is meant to help you live on. Not to pay for a loan.

So they may do an application based on some other source of income if any. A guarantor is only good if you default but you must be able to stand on your own two feet first.

Yeah I don't really like the idea of going in there and telling them that I am relying solely on social welfare payments to pay back the loan, which I am not since I assume I will be working somewhere soon for now this is my main 'income'. My situation is that I have just finished college and had been working too but have now moved home. I have a good record over the past few months of money being credited to my main bank of Ireland account but just save a bit every week in the credit union. They will be looking at these statements however so this may be positive. The source of this money has been selling music gear online and have made about 3,500 euro over the past few weeks, however this is not really consistent income and more a supplementary side income. I could however just tell them this is from a job and that I am working but I assume they would seek a letter of proof from an employer or something.

unclebill98

That's not income and then you be not telling the truth.

Credit unions can be be very different to banks when it comes to loans. Best to be honest, it will serve you better in the long term.

M.J.M.C

unclebill98 wrote: »

That's not income and then you be not telling the truth.

Credit unions can be be very different to banks when it comes to loans. Best to be honest, it will serve you better in the long term.

THIS!

You've nothing to be nervous about. Be open and honest.
Tell them what exactly you want the money for, and your EXACT income.

They wont bite, and they have €600 of your money - believe me ive had several loans from them, they are a very nice bunch

If you are honest with them, they might say - listen because you are only taking home X you can only borrow Y. Or they may say - we will give you the 3,000 if you save up to 1,000

At the end of the day they are doing this to ensure they get paid back and by doing so are ensuring you can pay it back comfortably without missing payments.


Go in, be honest - its for your benefit that you are.
They will be honest in return,


There's nothing worse than struggling to pay off a cu loan

DeadMoney

Ok thanks, I agree, its best that I just be completely honest.
Cheers

coylemj

OP, please don't take this personally but is it any wonder that there are so many credit unions in financial difficulties if some of them are lending money to people to go to Australia and (in your case) entertaining a loan application from someone on the dole to buy a car!

DeadMoney

coylemj wrote: »

OP, please don't take this personally but is it any wonder that there are so many credit unions in financial difficulties if some of them are lending money to people to go to Australia and (in your case) entertaining a loan application from someone on the dole to buy a car!

I certainly don't lose any sleep over it.

DeadMoney

coylemj wrote: »

OP, please don't take this personally but is it any wonder that there are so many credit unions in financial difficulties if some of them are lending money to people to go to Australia and (in your case) entertaining a loan application from someone on the dole to buy a car!

I sense a certain degree of bitterness towards young people who are fortunate enough to be in a position to leave this sinking ship of a country. If you think travel loans and small car loans have messed the Irish financial system the way it is, you really need to some more research. Thanks for your concern though but I'm pretty sure I can manage paying back 2.5k over the next 2 years. Anyway I'm not looking to get in to one of these debates, I didn't post my OP for that reason so what ever.

Beau

No need to be nervous, just be open and honest and they will help you out in whatever makes sense for you and for them. Don't mind some of the strange begrudging comments above. Don't worry about making large repayments now, take it slowly.