Credit Union Loan

gafferino

Hi Folks

Need to take a loan of around 5-7k or so for wedding etc. Im not a member of the credit union but was thinking of joining.
Whats actually involved in joining - do you have to have money saved in there before you can borrow?
I have been with BOI my whole life and get paid in there etc. Was thinking of CU as I heard APR might be better than banks?

Any advice appreciated.

Cheers

5t1mes

Hey,

Each credit union would have it's own policy regarding loan requirements so you would need to check with your local credit union to be sure.

Generally you would need to be saving regularly for a couple of months before you'd get a loan greater than your savings and have about a quarter of the loan your require in savings.

To join my local credit union I needed photo ID, proof of address & proof of my PPS number.
The APR will depend on which credit union you join, I think most are lower than your bank would be but your savings will be tied up while you have a loan also.
A credit union loan can be cleared early which could suit you if you are planning on paying off lump sums after the wedding.

Hope that helps!

PammyD

Usually u have to save for 13 weeks before applying for a loan and i think u can borrow 3 times what u have in it as far as i know...

Rightadvice

Hi,

When I joined the CU, for the first loan you were able to borrow twice your shares/savings, after that it was 3 times the amount. You can't touch your shares/savings until the loan is cleared, although once the loan amount is the same/less than your share amount you can use the shares to clear balance

I was talking to a friend who works in a cu & he said this has changed now. they were also looking for evidence of your ability to repay the loan.

Regards,
Robert

Angel8ie

I think the longer youre a member the easier it is to get a loan so you might find it hard to get anything off them if you haven't proven that you're a regular saver.