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Credit Union missed payment

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  • 08-04-2012 12:04pm
    #1
    smokey32
    Closed Accounts Posts: 82 ✭✭


    Hi. I have been a member of the credit Union since February and have been saving 40 euro a week since. I had to miss a payment last week and was wondering if anyone knew if this would effect a loan application. I am planning on applying for a 400 euro loan this week and paying them back 100 euro a week over 4 weeks. I dont need the 400 euro but want to get the first loan out of the way so i can get a bigger loan in august. Just wondering if the fact that i missed last weeks payment would effect my chances of getting a loan. If anyone can help. Thanks a million.
    Debbs!


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    #2
    wmpdd3
    Registered Users Posts: 9,624 ✭✭✭wmpdd3


    Yes it will, pay the 40 asap. they will ask you why it happened when you apply for the next loan. Its wont be on your icb report afaik.


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    #3
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    wmpdd3 wrote: »
    Yes it will, pay the 40 asap. they will ask you why it happened when you apply for the next loan. Its wont be on your icb report afaik.
    It's a failure to add to savings, not to make a repayment on a loan.

    OP, you need to know more about your CU. There might be a rule about a minimum period of membership before they consider a loan application.

    They would be impressed by the fact that you have managed to save €40 nearly every week. I don't think that taking out a loan that you don't actually need is a good idea. By August you should have about €1000 saved, and be able to show that you can pay in €40 pw. Chances are that they would be happy to lend you something in the region of €2,500 to €3,000.

    Make an appointment with the manager and tell him or her what you have in mind. Such a discussion will show that you want to plan your finances sensibly, and is more likely to help than to hinder your chances of getting a loan.


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    #4
    mackmuffin
    Closed Accounts Posts: 305 ✭✭mackmuffin


    wmpdd3 wrote: »
    Yes it will, pay the 40 asap. they will ask you why it happened when you apply for the next loan. Its wont be on your icb report afaik.

    No it wont, thats a ridiculous statement, no it wont op, just the more you have in there the more likely they'll approve it


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    #5
    Olidolly
    Registered Users Posts: 33 ✭Olidolly


    Good advice from P. Breathnach here. However, have to admit I read the first sentence a couple of times before I got what you were saying as it looked at first pass to me like some wrong had been done.

    It's a failure to add to savings, not to make a repayment on a loan.

    Just to be clear here for OP what I think P.B. means, and I would say, is that all you did is not pay 40 into savings one week which is not at all serious as opposed missing a 40 payment on an existing loan which would be serious.

    The advice he/she has given is spot on though. You don't seem to be familiar with Credit Unions. If not, believe me they are very easy to talk to and your best bet is to go in and discuss your plans with them. The old rule of thumb was that you should have in savings 3 times the amount that you want to take out by way of loan. Don't know if that still holds, but if you save 40 until August you will have a tidy sum and I just cannot see that there would be an issue for reasonble loan amount. I cannot see the objective in taking out a 400 loan now or how it would help your chances later. You best bet is ask for the Manager/Loan officer and talk to them - they are incredibly friendly and approachable. Good luck.


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    #6
    wmpdd3
    Registered Users Posts: 9,624 ✭✭✭wmpdd3


    mackmuffin wrote: »
    No it wont, thats a ridiculous statement, no it wont op, just the more you have in there the more likely they'll approve it

    Sorry OP, I read your post wrong. I thought you had missed a payment of the first loan of €400 and wanted to apply for a higher loan. My apologies.


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    #7
    lotsofthegreen
    Registered Users Posts: 474 ✭✭lotsofthegreen


    wmpdd3 wrote: »
    Sorry OP, I read your post wrong. I thought you had missed a payment of the first loan of €400 and wanted to apply for a higher loan. My apologies.
    its a misleading title


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    #8
    smokey32
    Closed Accounts Posts: 82 ✭✭smokey32


    Olidolly wrote: »
    Good advice from P. Breathnach here. However, have to admit I read the first sentence a couple of times before I got what you were saying as it looked at first pass to me like some wrong had been done.

    It's a failure to add to savings, not to make a repayment on a loan.

    Just to be clear here for OP what I think P.B. means, and I would say, is that all you did is not pay 40 into savings one week which is not at all serious as opposed missing a 40 payment on an existing loan which would be serious.

    The advice he/she has given is spot on though. You don't seem to be familiar with Credit Unions. If not, believe me they are very easy to talk to and your best bet is to go in and discuss your plans with them. The old rule of thumb was that you should have in savings 3 times the amount that you want to take out by way of loan. Don't know if that still holds, but if you save 40 until August you will have a tidy sum and I just cannot see that there would be an issue for reasonble loan amount. I cannot see the objective in taking out a 400 loan now or how it would help your chances later. You best bet is ask for the Manager/Loan officer and talk to them - they are incredibly friendly and approachable. Good luck.
    Hi. Thanks for the advice.The reason im taking out the 400 euro loan is because my brother suggested it and said that the first loan is only.Sorry im not explaining this well. He told me to get a loan of 400 euros ,put it aside and pay back 100 euro a week. And according to him id be ok to get a a bigger loan in august which is the one i need. Thanks for your help. Debbie


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    #9
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    Applying for a first loan and paying it off isn't a bad tactic. It's what I did with them originally, too. It's shows an ability to repay.

    However, when you are repaying the €400, do you intend to continue saving €40 per week, too? If you all of a sudden stop saving to pay off the loan, this doesn't look as impressive to the CU.

    The CU generally take into account your stability with them and your ability to repay them. If I saved €10 every week for five years and never missed, there's a good chance they'd give me an un-proportionately large loan based on the fact that I've been with them so long (less likely to disappear), have never missed them (good ability to repay and keep a schedule of repayments) etc.

    If you put €40 in per week, then get a loan of €400 and pay €100 per week, but stop putting the €40 in, it begins to look like the €100 repayment has crippled you financially and you can no longer afford the €40 per week to continue saving with (if you see where I'm coming from?)

    So I'd go with a lesser repayment (€50 per week, perhaps?) and continue with the €40 per week into the savings.

    As it's a first loan, you sometimes need an existing member to be a guarantor for your loan (this may not apply if your shares balance is greater than the amount you wish to borrow).


    I don't work with the Credit Union or anything though (merely a member) so all of this is speculation based on my dealings with them.


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    #10
    batistuta9
    Registered Users Posts: 8,146 ✭✭✭batistuta9


    Olidolly wrote: »
    The old rule of thumb was that you should have in savings 3 times the amount that you want to take out by way of loan. Don't know if that still holds, but if you save 40 until August you will have a tidy sum and I just cannot see that there would be an issue for reasonble loan amount. I cannot see the objective in taking out a 400 loan now or how it would help your chances later. You best bet is ask for the Manager/Loan officer and talk to them - they are incredibly friendly and approachable. Good luck

    was it not that you'd be able to get a loan of about 3 times the amount of your savings? not a third of your savings as you suggest.

    the reason to take a loan now is to show them you can pay it back weekly - it'll help your chances if they see you've paid back before

    smokey32 wrote: »
    Hi. Thanks for the advice.The reason im taking out the 400 euro loan is because my brother suggested it and said that the first loan is only.Sorry im not explaining this well. He told me to get a loan of 400 euros ,put it aside and pay back 100 euro a week. And according to him id be ok to get a a bigger loan in august which is the one i need. Thanks for your help. Debbie

    afaik the first loan you get can't be too big, €400 might be ok though. It's a good idea getting the loan you don't need & paying it back, i done this too

    but don't get a loan of €400 & pay back €100 a week. they don't like that - know a girl working in my local C.U, she was telling me - they'd rather you to be paying back the required amount or a bit more each week. She was saying this looks better later on when your applying for a larger loan, that they can check your history & see your able to pay back every week. also their going to make a bit more money on interest that way too but would also be watching out for people doing what your thinking of - loan, pay back quick - so they can try for bigger loans.

    maybe go for a loan of around 250/300 & pay back the minimum or 25/30 each week. I think for the minimum they'll ask what you can afford or if your OK with paying the minimum they've set. i can't remember correctly now

    Deleted User wrote: »
    Applying for a first loan and paying it off isn't a bad tactic. It's what I did with them originally, too. It's shows an ability to repay.

    However, when you are repaying the €400, do you intend to continue saving €40 per week, too? If you all of a sudden stop saving to pay off the loan, this doesn't look as impressive to the CU.

    The CU generally take into account your stability with them and your ability to repay them. If I saved €10 every week for five years and never missed, there's a good chance they'd give me an un-proportionately large loan based on the fact that I've been with them so long (less likely to disappear), have never missed them (good ability to repay and keep a schedule of repayments) etc.

    If you put €40 in per week, then get a loan of €400 and pay €100 per week, but stop putting the €40 in, it begins to look like the €100 repayment has crippled you financially and you can no longer afford the €40 per week to continue saving with (if you see where I'm coming from?)

    So I'd go with a lesser repayment (€50 per week, perhaps?) and continue with the €40 per week into the savings.

    As it's a first loan, you sometimes need an existing member to be a guarantor for your loan (this may not apply if your shares balance is greater than the amount you wish to borrow).


    I don't work with the Credit Union or anything though (merely a member) so all of this is speculation based on my dealings with them.

    yeah you do need the guarantor but not sure if they need to be a member or not

    also there's no need to be saving that amount each week either, if your paying back a loan even throwing in a few quid to the savings should be alright. i think they like the consistency more than the amounts


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