Credit Union Loan for car

meoklmrk91

I was just wondering if anyone could give me any advice on this, I want to buy a new car, I have the money to do it in savings but don't want to touch said savings would like to hold onto them for a rainy day as I am a student and have to support myself.

A Loan of €3000 would get me the kind of car I am looking at, I would probably end up adding a bit on from savings for the right one, I don't however have a job, would the credit union even look at my application. I am very good at budgeting and could pay back €50 a week easily, I have never missed a bill and there is always money in my bank account.

Jimbob 83

I personally have paid off 2 credit union loans over afew years w/o missing a single payment and went in looking for a car loan today and they were not very helpful, everyone is getting tighter on loans these days.

Every case is different though so best to just go in and talk to them, if you have equal savings to the amount you are looking for im almost 100% sure you will get sorted on the spot.

They look for.

Lsst 3 months bank statements.
Utility Bill/bank statement with address on it.
Photo ID
Payslip(If applicable)

Hope this helps

fasttalkerchat

They don't ask if you work. Just that you can pay the amount back.
Just make sure you get the interest rate and total repayment in writing because they aren't too good with numbers in my experience!
Also they don't keep much cash in each branch so you need to arrange the loan a few days before you can pay for the car.

chris85

fasttalkerchat wrote: »

They don't ask if you work. Just that you can pay the amount back.
Just make sure you get the interest rate and total repayment in writing because they aren't too good with numbers in my experience!
Also they don't keep much cash in each branch so you need to arrange the loan a few days before you can pay for the car.

They do ask if you work, its a critical part of lending criteria. Any decent lender asks about work, wages, other loans, ability to pay back, etc.

fasttalkerchat

chris85 wrote: »

They do ask if you work, its a critical part of lending criteria. Any decent lender asks about work, wages, other loans, ability to pay back, etc.

All I was asked id do you have any other loans or savings - no.
How much can you pay back per month - above what I was asking for.
Do you have someone who can ant as a guarantor - yes.

I was asking for a couple of hundred so maybe they weren't that bothered with were the money came from because I could use my savings if they turned me down.

chris85

fasttalkerchat wrote: »

All I was asked id do you have any other loans or savings - no.
How much can you pay back per month - above what I was asking for.
Do you have someone who can ant as a guarantor - yes.

I was asking for a couple of hundred so maybe they weren't that bothered with were the money came from because I could use my savings if they turned me down.

Ok so only a couple of hundred euro and a guarantor and the amount is less than your savings. It means they have zero risk as if you default they can just take your shares, thats a different story. Also you should use the shares if possible as save not paying interest on a loan.

Jimbob 83

I was in today looking for a 10k car loan have about 2k in savings account and 2 loans totalling over 10k paid off over 4 years w/o missing 1 payment, im currently doing an internship so im on €250 or so but week by week i other small types of income that are not provable and at the end of the internship i am guaranteed a job.

I was told i would have to bring in what i listed above and was also told that she thought i didn't have much of a chance of getting the loan i was also told "Shure isn't €10,000 euros an awful lot for a car"

Credit Union loans have changed alot since i got my first one in 2007 got 10x what i had in savings no questions asked even got prompted by the 2 ladies giving me the loan to take out a loan for car and insurance at car loan rate when i went in looking for a 4500 car loan and 1500 insurance loan.

It's a pity as i know im a sure bet to pay off that 55 euros a week and im doing my best to get into full time employment again working at a heavy job earning not alot but im guaranteed a full time job on proper wages at the end and a good reference.

Oh well.

chris85

Jimbob 83 wrote: »

I was in today looking for a 10k car loan have about 2k in savings account and 2 loans totalling over 10k paid off over 4 years w/o missing 1 payment, im currently doing an internship so im on €250 or so but week by week i other small types of income that are not provable and at the end of the internship i am guaranteed a job.

I was told i would have to bring in what i listed above and was also told that she thought i didn't have much of a chance of getting the loan i was also told "Shure isn't €10,000 euros an awful lot for a car"

Credit Union loans have changed alot since i got my first one in 2007 got 10x what i had in savings no questions asked even got prompted by the 2 ladies giving me the loan to take out a loan for car and insurance at car loan rate when i went in looking for a 4500 car loan and 1500 insurance loan.

It's a pity as i know im a sure bet to pay off that 55 euros a week and im doing my best to get into full time employment again working at a heavy job earning not alot but im guaranteed a full time job on proper wages at the end and a good reference.

Oh well.

€10k you want and you earn €250 per week at moment. Would be negligent to give you €10k to be honest. You are correct though they have changed a lot since 2007 as has everything really so they must change with the times as they are under increasing financial pressure, some more so than others.

Jimbob 83

chris85 wrote: »

€10k you want and you earn €250 per week at moment. Would be negligent to give you €10k to be honest. You are correct though they have changed a lot since 2007 as has everything really so they must change with the times as they are under increasing financial pressure, some more so than others.

€250 provable income, do the odd job with a co worker that is above board and tax is paid on but it's in his name so thats no good to me.

chris85

Jimbob 83 wrote: »

€250 provable income, do the odd job with a co worker that is above board and tax is paid on but it's in his name so thats no good to me.

Yes but live within your means, a perfectly good car can be got for the €2k savings you have. This is a lot of what was happening in the boom times with people living beyond their means making all purchases on credit. Its perfectly understandable your CU wouldnt loan this to you.

Jimbob 83

chris85 wrote: »

Yes but live within your means, a perfectly good car can be got for the €2k savings you have. This is a lot of what was happening in the boom times with people living beyond their means making all purchases on credit. Its perfectly understandable your CU wouldnt loan this to you.

Bad approach to just blow your savings on a car.

I can understand your viewpoint but if everyone thought that way there would be no such thing as international markets of any form of large scale trading.

I have paid off 2 credit union loans while earning the same amount of money w/o missing or even having 1 late payment, infact both were paid off early which is in my opinion the main benifit of a Credit Union loan, it's the whole Provable income thing really.

Will have a full time job in under 6 months from the internship thats a cert but with the state of my current car i need something better, im a fairly safe bet tbh i think i just met the wrong loan manager, will try again when i have some more savings.

chris85

Jimbob 83 wrote: »

Bad approach to just blow your savings on a car.

I can understand your viewpoint but if everyone thought that way there would be no such thing as international markets of any form of large scale trading.

I have paid off 2 credit union loans while earning the same amount of money w/o missing or even having 1 late payment, infact both were paid off early which is in my opinion the main benifit of a Credit Union loan, it's the whole Provable income thing really.

Will have a full time job in under 6 months from the internship thats a cert but with the state of my current car i need something better, im a fairly safe bet tbh i think i just met the wrong loan manager, will try again when i have some more savings.

The credit unions dont have a lot of money to lend out so they must be selective. You are not as good as someone with full time job with higher earnings.

My viewpoint is valid as has nothing to do with international markets as you say. I simply say people need to live within their means, its as simple as that. A €10k car on your earnings is not doing that.

kearney13

I have just over 500 quid in my CU account, I'm a member maybe 3 years, would of been putting in money now and then and taken some out out... asked for a 3k loan for a car and got refused I'm 20 in a guaranteed 4 year apprenticeship I'm in 1st year but can well afford 60 quid a week, and in a few months time I will be able to afford 100 a week

They need a guarentur, whose account will be frozen till all the moneys paid back, I don't know anyone who can do this for me as they need there accounts...

I don't see why I would need a guarentur tho, I've a full time job thats safe for at the least 4 years, gave them wages slips bank slips but still no.. its not like I would run of with 3k and move to another country

Jimbob 83

kearney13 wrote: »

I have just over 500 quid in my CU account, I'm a member maybe 3 years, would of been putting in money now and then and taken some out out... asked for a 3k loan for a car and got refused I'm 20 in a guaranteed 4 year apprenticeship I'm in 1st year but can well afford 60 quid a week, and in a few months time I will be able to afford 100 a week

They need a guarentur, whose account will be frozen till all the moneys paid back, I don't know anyone who can do this for me as they need there accounts...

I don't see why I would need a guarentur tho, I've a full time job thats safe for at the least 4 years, gave them wages slips bank slips but still no.. its not like I would run of with 3k and move to another country

Sad fact is that the Credit Union like alot of financial institutions got greedy during the boom and left itself over exposed to risky but potentially profitable large scale loans and got burnt, now it's people like you and me who know we are able to repay and in my case have a flawless repayment record and still cannot get the money we need.

kearney13

It really really is unfair

chris85

Apprentice gets paid little less than €200 per week and you think the CU will see it ok that €60 gets taken by them each week. They will view this as unsustainable even though you may be well able for it. They must assess the risk associated with you before lending. Low income, higher risk as a rule of thumb although not always the case.

kearney13

I know I don't make a lot now but it goes up every year, they would give me a loan no problem if I had a guarantor but freezes that account I don't understand that?

chris85

kearney13 wrote: »

I know I don't make a lot now but it goes up every year, they would give me a loan no problem if I had a guarantor but freezes that account I don't understand that?

The guarantor will reduce the risk associated with the loan as they will be liable to pay for it. Often CU's will freeze shares of a person while they have a liability outstanding with the CU.

Jimbob 83

Freezing shares is totally understandable and is one of the good things about credit union loans.