Reckon I'll get the Credit Union Loan- advice needed

TomTomtyper

I'll try keep i short

I am a member of a credit union loan the past 14 months.

Initially I deposited and saved 1300

I got an equal shae loan at that..... paid off 50% of it and about 5 months ago got a top up to 5900 total.

I have subsequently paid 1900 off that so I owe 4000 outstanding on that loan.

I applied this month for a further top up of 7000 as my wages are set to increase next month and I want to get a new car to last me the next while. On the application the lady behind the counter was meant to have put I would be lodging 2700 into my savings so the loan was rejected.


I lodged 2k and then spoke with the credit controller and she re-applied the loan and put the note on it that 700 more would be lodged.

This was due at the credit committee this morning but as it was rejected last week it goes to the board of directors on monday evening.


Do you reckon I stand a chance of getting this or will i go back to driving junker cars for the next while?


A quick summary


I have been paying 350 a month

I have 4000 outstanding on a loan

I have 3350 shares and 700 more ready to go in

No other loans etc. bar insurance repayments and making 1300 a month increasing to 2k a month next month.

And I wish to top the loan up to 11k total

Payments will be 350 monthly until next month and they will change to 100 weekly.


How leniant are the board of directors normally?

matt70iu

Hi

To be honest, I'm a bit baffled as to why they didn't give it to you in the first place. I got a top up loan of 3000, bringing total owed to 8800 with 2500 worth of shares and they approved it no problem.

Just needed to show them pay slips and that was it.

As to weather the board of directors are more leanient or not I don't know. I would suspect they have a set criteria. If you meet it, you get the loan, if you don't, you won't. There's no middle ground.

It's nail biting though isn't it. I would just wait and see what they come back with.

Best of luck and sure let us know how you get on:)

loconnor1001

Can I ask were either of you ever asked for a guarantor? I am about to apply for my first loan from the credit union, been a member for quite some time, deposit for the most part on a weekly basis, and only looking for about 1800. Now when I rang the CU to ask what I should bring in with me when I apply (i.e. Payslips, bank statements etc..) I was told quite abruptly and of course the woman had no info about me whatsoever that I would need bank statement, payslips, and a guarantor. Now I make ok money.. around 1800 p/m, Im also 30 years old. Why on earth would a 30 year old in these circumstance need a guarantor? Im not about to ask someone to co sign a loan for me, ridiculous. Im just wondering have you had the same experience? Or was I unlucky enough to speak to an ignorant twat on the phone??

matt70iu

loconnor1001 wrote: »

Can I ask were either of you ever asked for a guarantor? I am about to apply for my first loan from the credit union, been a member for quite some time, deposit for the most part on a weekly basis, and only looking for about 1800. Now when I rang the CU to ask what I should bring in with me when I apply (i.e. Payslips, bank statements etc..) I was told quite abruptly and of course the woman had no info about me whatsoever that I would need bank statement, payslips, and a guarantor. Now I make ok money.. around 1800 p/m, Im also 30 years old. Why on earth would a 30 year old in these circumstance need a guarantor? Im not about to ask someone to co sign a loan for me, ridiculous. Im just wondering have you had the same experience? Or was I unlucky enough to speak to an ignorant twat on the phone??

Hi

When I took out my first loan with them, I was Asked for a guarantor alright. Even when I got a top up loan i was asked for payslips.

The payslips request was a first for me. even though I had paid off 6 small loans totalling about 15000! Reckon they're just getting tighter.

The guarantor is normal and expected for your first loan, no natter how long you've been a member.

Best of luck and hope you get it!

Matt

mant

Refused Loan.
I recently applied for a €2500 loan from the virginia credit union, I have been a member for almost 2 yearsI have 1000 in shares and owe 480 off a previous loan of 1500.
I was refused the 2500 so I went back and asked for 1500, the reason I gave for the loan was my collage fees which total 1050, 300 of which I have already paid leaving 750 to pay, the credit union got back to me saying my 1500 loan has been turned down, but they are willing to give me a check payable to the collage for 700.
I got back to them informing them that I have to pay online and a check is no good to me, or I can fet a giro from AIB pre-addressed to the collage.
I was told the committe had made the decision and no I would have to go and get Proof, before they make another decision.
I have never missed a payment to them before and have a good credit record, my income is 188 a week.

naughtysmurf

I have been a member of my credit union for probably 30 years now and it is only for my last two loans (not particulary huge) I have been asked for payslips / bank statements etc. They also checked my credit rating with the Irish Credit Bureau even though I never defaulted on a loan with them or anyone else in my life

Facts are that a number of members are struggling to pay back loans and the financial regulator is taking a keen interest in the whole loan application / approval process and they are been audited on a regular basis also

For those reasons it is getting more difficult to get approval

loconnor1001

naughtysmurf wrote: »

I have been a member of my credit union for probably 30 years now and it is only for my last two loans (not particulary huge) I have been asked for payslips / bank statements etc. They also checked my credit rating with the Irish Credit Bureau even though I never defaulted on a loan with them or anyone else in my life

Facts are that a number of members are struggling to pay back loans and the financial regulator is taking a keen interest in the whole loan application / approval process and they are been audited on a regular basis also

For those reasons it is getting more difficult to get approval

I have no problems handing over payslips, bank statements, credit checks, etc...but I do have a problem with asking someone to co sign a loan for me when I am more than likely earning more money in the first place. (I don't have any famiily around here, and find it distasteful to ask in laws or friends to co sign).

naughtysmurf

loconnor1001 wrote: »

I have no problems handing over payslips, bank statements, credit checks, etc...but I do have a problem with asking someone to co sign a loan for me when I am more than likely earning more money in the first place. (I don't have any famiily around here, and find it distasteful to ask in laws or friends to co sign).

I have no problem with providing proof of income / ability to repay either

Pity all the lending institutions including credit unions didn't act responsibly in this area and then maybe we may not be in the sh!te we're in

seanrose

have recently found the credit union becoming very difficult to get a loan off.

I was paying €65 off my loan and putting €75 into savings every week for the past 6 months.I paid off the loan 10 months early.Have had 4 loans off the same credit union and paid them all off

Had €3000 savings and asked for a loan off €12,000 to be paid off over 4 years,was refused the loan as i had not enough disposable income.I was bemused to say the least

dotsman

naughtysmurf wrote: »

I have no problem with providing proof of income / ability to repay either

Pity all the lending institutions including credit unions didn't act responsibly in this area and then maybe we may not be in the sh!te we're in

I don't know what is more wrong about this statement: the fact that most credit unions are in a far, far worse position than banks with regard their personal portfolios or the fact that the op is already heavily indebted and falling further and further into debt just to buy luxury items and no responsible lender would even entertain this application.

naughtysmurf

dotsman wrote: »

I don't know what is more wrong about this statement: the fact that most credit unions are in a far, far worse position than banks with regard their personal portfolios or the fact that the op is already heavily indebted and falling further and further into debt just to buy luxury items and no responsible lender would even entertain this application.

Well, you have quoted me and I am not the original poster so I assume that's an error.
The point I was making is that credit unions along with many other lending institutions lent plenty during the "boom" to people who should have never got loans based on their income and ability to pay. I'm not saying that the people who borrowed were totally at fault but the access to easy credit from wherever was not a bright idea

It is factually correct to state that the financial regulator is now taking a keen interest in the credit union loan application / approval process and credit unions are paying a lot more attention to applicants income / outgoings and their ability to pay back their loan than they did in the past

This may help, taken from Athlone Credit Union Website

In the past credit unions usually lent on a maximum ratio of 3 to 1 loans to shares. More recently this ratio has been relaxed and as long as members can prove their repayment capability, ratios of 10 to 1 for loan to shares are not uncommon. That aside Credit Officers and the Credit Committee will take into consideration the size of the loan and whether any form of additional security is being offered other than shares. For first time borrowers, a member’s length of time with the credit union and their savings history are key determinants in assessing loan applications. It is normally the case that a member will have joined at least 12 weeks before an application for a loan will be considered. First time Borrowers can expect to borrow up to a maximum of five times their shares once they have a proven savings history in place.


Oh and by the way, not heavily in debt, in fact doing nicely thanks very much, that was quite an assumption

Anyone

Different times now. Comparing what you got in the past to today isn't really feasible.

Naughtysmurf, I think you are generalising way too much. Sure, some loans probably should not have been issued, but a hell of a lot of peoples circumstances have changed over the last 2 years. Hardly the fault of the CU that people lost their jobs etc etc, nobody could have foreseen what has happened in Ireland and nobody did.

With any loan application now, the ability to repay is paramount. Added to this, is the fact that things are going to get tougher(increased taxes,social welfare cuts,rising costs). The Credit Unions are aware of this, and are taking steps to ensure that loans issued can withstand this.

naughtysmurf

Anyone wrote: »

Different times now. Comparing what you got in the past to today isn't really feasible.

Naughtysmurf, I think you are generalising way too much. Sure, some loans probably should not have been issued, but a hell of a lot of peoples circumstances have changed over the last 2 years. Hardly the fault of the CU that people lost their jobs etc etc, nobody could have foreseen what has happened in Ireland and nobody did.

With any loan application now, the ability to repay is paramount. Added to this, is the fact that things are going to get tougher(increased taxes,social welfare cuts,rising costs). The Credit Unions are aware of this, and are taking steps to ensure that loans issued can withstand this.

I agree with a lot of that but sadly a lot of lending institutions when throwing money at people over the last number of years didn't stress test the applicant properly which would or should include taking into account the effect of losing a job would have on the persons ability to repay the loan, they just didn't care it seems, there was a lending frenzy and the regulator was asleep

Don't get me wrong, I feel sad for people who have lost their jobs and are now under severe financial pressure and all the stress that comes with that, I certainly wouldn't like to be in their shoes,

Anyone

naughtysmurf wrote: »

I agree with a lot of that but sadly a lot of lending institutions when throwing money at people over the last number of years didn't stress test the applicant properly which would or should include taking into account the effect of losing a job would have on the persons ability to repay the loan, they just didn't care it seems, there was a lending frenzy and the regulator was asleep

If you stress test a loan for a person losing their job, you cant lend, simple as.

To answer the OP.....you have never cleared a loan, you are increasing debt each top up you get. You have paid in 2k with a promise to deposit another 700. You are basing the loan on an income you don't yet have(your wage increase). If that was me, I would have kept the 2700, put it towards the car and applied for less.

finto

Out of interest. How long would you need to be saving before asking for a loan? Would 1 month be ok? Or 1 year?

dotsman

naughtysmurf wrote: »

Well, you have quoted me and I am not the original poster so I assume that's an error.
The point I was making is that credit unions along with many other lending institutions lent plenty during the "boom" to people who should have never got loans based on their income and ability to pay. I'm not saying that the people who borrowed were totally at fault but the access to easy credit from wherever was not a bright idea

It is factually correct to state that the financial regulator is now taking a keen interest in the credit union loan application / approval process and credit unions are paying a lot more attention to applicants income / outgoings and their ability to pay back their loan than they did in the past

This may help, taken from Athlone Credit Union Website

In the past credit unions usually lent on a maximum ratio of 3 to 1 loans to shares. More recently this ratio has been relaxed and as long as members can prove their repayment capability, ratios of 10 to 1 for loan to shares are not uncommon. That aside Credit Officers and the Credit Committee will take into consideration the size of the loan and whether any form of additional security is being offered other than shares. For first time borrowers, a member’s length of time with the credit union and their savings history are key determinants in assessing loan applications. It is normally the case that a member will have joined at least 12 weeks before an application for a loan will be considered. First time Borrowers can expect to borrow up to a maximum of five times their shares once they have a proven savings history in place.


Oh and by the way, not heavily in debt, in fact doing nicely thanks very much, that was quite an assumption

Apologies, was still very hungover when I (mis)read your post yesterday. I am actually in agreement with you!

naughtysmurf

Anyone wrote: »

If you stress test a loan for a person losing their job, you cant lend, simple as.

To answer the OP.....you have never cleared a loan, you are increasing debt each top up you get. You have paid in 2k with a promise to deposit another 700. You are basing the loan on an income you don't yet have(your wage increase). If that was me, I would have kept the 2700, put it towards the car and applied for less.

Take your point to an extent but savings, other income, credit rating, partners income if appliable can be taken into account, with credit unions your history with them is very important

As regards how long you have to be saving before getting a loan, it's 11 weeks with my credit union but they may vary

naughtysmurf

dotsman wrote: »

Apologies, was still very hungover when I (mis)read your post yesterday. I am actually in agreement with you!

No problemo, hope you're feeling better