Credit Union Car Loan

Darren 83

Looking for some advice, Looking to get a loan of 7000-8000 for a car/holiday, I have never missed them as I pay dd. I have owe them about 1000, and will have
about 1500 saved I can how ever add about 1000 to my savings in the next three months,when I plan to ask for the loan. Would I be better putting the thousand off the loan or into my savings?

Thanks in advance

Jimbob 83

Into savings imo

Stark

Bit tricky understanding your post. But assuming you still have 1500 saved for cases of emergency and the 1000 you owe on your existing loan paid off then I would use the 1000 extra you have to take out a smaller loan as the interest you'll pay on the loan will be a lot higher than the interest you'll receive on your savings.

Darren 83

If I added the 1000 to my savings, I would have 2500 saved it would look better when applying fo the loan.

Jimbob 83

Exactly Darren, it shows your commitment by putting that money in your savings and will be looked upon much better by the CC.

Some people would suggest just taking out your savings altogether and getting what you can afford from them, but whats the point of that when it leaves you back at square one, better to get the loan and if you can afford it to throw in an extra €10 or so a week into savings, means more wiggle room on your next loan too which is great.

Darren 83

Never seen the point in talking out my savings, I'm already putting more than I should be off my loan, I wanted to put less to off my loan and more towards my savings.