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help asap CREDIT UNION Q CAR LOAN

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  • 19-03-2013 5:10pm
    #1
    kiitycat
    Registered Users Posts: 40 ✭


    hey guys i want to apply for a car loan for 6000 i have 2000 in savings with the credit union, im on btea of 188 a week and get 40e for babysitting a week the credit union want a payslip will they give me a loan on such small income?
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    #2
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    There is only one way to find out and that is to go in and ask. Have you had a loan from them previously? I ask this as my local you would have had to have had one loan previously paid off equal to the value of your savings, before you could apply for a loan of three times the amount.

    You can do this if you haven't by getting a loan and paying it off the following week, thus creating the conditions to get the loan three times the amount. Does this make sense.

    With a loan of 6000, you have to show the ability to pay back, so if you took the loan over a five year period the repayments may be 22 euro per week, plus interest maybe of around 12 euro per week starting off and decreasing interest weekly.

    It certainly is doable from the credit unions point of view as their ethos is loans for paople in your situation, low income etc... But ultimately it comes down to your application.


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    #3
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    no this is my frist time loan and i will be taking it out over 5 years which its around 27e a week including the interest i looked it up on teh loan calculator avaible on the website


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    #4
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    Sure, go on in to them and put in an application, you will need proof of address, bank statement showing your btea payments that are coming in regularly


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    #5
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    true that thanks for the reply im nerveous ha ha hopefully :)


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    #6
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    You've nothing to worry about it is a reasonable loan. Have you been giving regular payments to them over the years buiding up your savings etc, if so, that shows you can afford a small bit weekly towards the cost of a loan.


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    #7
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    ya i dont do it every week but when i can i always put in some money and if i take sum out i always put it back again to make it always around the 2000 mark :)


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    #8
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    You'll be grand, just relax I've always found the Credit Union very helpful when I've needed them.


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    #9
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    ya surely really want this loan hopefully now they will help :)


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    #10
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    The CU will be more helpful in terms of a loan for someone on BTEA. I would question the requirement for €6k for a car loan. A good car can be got for half that which will last a good number of years. This is worth considering due to your fixed income and how much you need a €6k car as opposed to a €3k car.


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    #11
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    ya true but my car is 15 years old and i want to go up a few years but i will consider ti thanks for the heads up :)


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    #12
    Darren 83
    Registered Users Posts: 1,685 ✭✭✭Darren 83


    kiitycat wrote: »
    hey guys i want to apply for a car loan for 6000 i have 2000 in savings with the credit union, im on btea of 188 a week and get 40e for babysitting a week the credit union want a payslip will they give me a loan on such small income?

    They should give you a loan equal to you're savings as there is no risk in doing that, I think they will question 6k and you may need someone to co sign for you as its you're first loan.


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    #13
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    ya i thought you can get up to 3 times ur amount in savings??


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    #14
    Darren 83
    Registered Users Posts: 1,685 ✭✭✭Darren 83


    kiitycat wrote: »
    ya i thought you can get up to 3 times ur amount in savings??

    Every credit union is different but its you're first loan so I would say you will need a guarantor, Personally I would get a small loan say 500 and pay it back and save as well you need too have some history repaying loans with them.


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    #15
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    padma wrote: »
    There is only one way to find out and that is to go in and ask. Have you had a loan from them previously? I ask this as my local you would have had to have had one loan previously paid off equal to the value of your savings, before you could apply for a loan of three times the amount.

    You can do this if you haven't by getting a loan and paying it off the following week, thus creating the conditions to get the loan three times the amount. Does this make sense.

    With a loan of 6000, you have to show the ability to pay back, so if you took the loan over a five year period the repayments may be 22 euro per week, plus interest maybe of around 12 euro per week starting off and decreasing interest weekly.

    It certainly is doable from the credit unions point of view as their ethos is loans for paople in your situation, low income etc... But ultimately it comes down to your application.

    see highlighted part of post


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    #16
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    padma wrote: »
    You can do this if you haven't by getting a loan and paying it off the following week, thus creating the conditions to get the loan three times the amount. Does this make sense.
    It makes no sense that you think your CU are dumb enough to fall for this. Every application gets reviewed individually, and it will be very clear that you've been messing around. You probably won't get the second loan, let alone the third one, as they'll know you are messing.


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    #17
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    padma wrote: »
    see highlighted part of post

    If you give the money back the following week, I don't think it counts as repaying a loan. It's just giving the money back (AFAIK if you give the entire sum back within a certain period (10 days?) it's cancelled?


    Besides, Credit Unions generally give loans based on ability to repay. If the OP wants 6k they should get a loan of €500 for a new toaster and kettle in Harvey Norman, and pay it back exactly as they said they would. This builds up a good repayment history.

    Then go in for the €6,000 after they've built up a bit of a history of on-time payments. That'd be my advice anyway.


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    #18
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    It may seem like this but I can assure you it was what I was advised to do by the Loan officer the first time I was looking for a Loan. As the loan I requested was 3 times the amount, they couldn't give it to me. They laid out the alternative which was to take a loan and pay it back and come back to them within 7 days.

    This creates the condition that you have already paid off a loan equal to the amount of your savings. There is nothing at all wrong with this.

    A Credit union loan can be paid back anytime with no early payment fee, and indeed is encouraged. The quicker you pay back a loan the less interest you will pay back on the loan.


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    #19
    padma
    Closed Accounts Posts: 1,874 ✭✭✭padma


    RainyDay wrote: »
    It makes no sense that you think your CU are dumb enough to fall for this. Every application gets reviewed individually, and it will be very clear that you've been messing around. You probably won't get the second loan, let alone the third one, as they'll know you are messing.

    There is nothing wrong with this. Nothing at all dumb about paying back a loan fast. People take out loans because they need them. A lot of people may need a loan greater than their savings. The credit union makes profit on loans and are safe in the knowledge that you can repay due to your history and ability to repay.

    I'll give an example. I'm moving from one job to another. I'm going to lose a months salary as I will be working a month in Lieu. I have a mortgage repayment I can't pay this month, I take out a loan from the CU to meet the mortgage repayment. The next week I get paid from work, pop in to the CU and repay the loan.


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    #20
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    yea im going to go in and try anyway il have my dad as a guarntoor aswell so things should be ok then i hope :)


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    #21
    Darren 83
    Registered Users Posts: 1,685 ✭✭✭Darren 83


    kiitycat wrote: »
    yea im going to go in and try anyway il have my dad as a guarntoor aswell so things should be ok then i hope :)

    Best of luck with it


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    #22
    kiitycat
    Registered Users Posts: 40 ✭kiitycat


    thanks il let ye know how i go :) i myt start saving a sum amount every week aswell show i can save thanks for the help :)


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    #23
    Darren 83
    Registered Users Posts: 1,685 ✭✭✭Darren 83


    kiitycat wrote: »
    thanks il let ye know how i go :) i myt start saving a sum amount every week aswell show i can save thanks for the help :)

    Do it shows you can pay off a loan and save, even a fiver a week


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    #24
    GHOST MGG
    Registered Users Posts: 940 ✭✭✭GHOST MGG


    in my experience with the credit unions,ever since the government got involved with their affairs its fairly hard to get any loan as they dont
    have the leeway they used to have with payslips etc.In that i mean they follow to the letter the criteria for loaning where as before their usually was some kind of leeway with them.Apparently their are a huge number of defaulters and the government is cracking down hard on the credit unions.


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    #25
    Darren 83
    Registered Users Posts: 1,685 ✭✭✭Darren 83


    GHOST MGG wrote: »
    in my experience with the credit unions,ever since the government got involved with their affairs its fairly hard to get any loan as they dont
    have the leeway they used to have with payslips etc.

    +1


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    #26
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    GHOST MGG wrote: »
    in my experience with the credit unions,ever since the government got involved with their affairs its fairly hard to get any loan as they dont
    have the leeway they used to have with payslips etc.In that i mean they follow to the letter the criteria for loaning where as before their usually was some kind of leeway with them.Apparently their are a huge number of defaulters and the government is cracking down hard on the credit unions.

    Nothing to do with the Government, its an EU directive. The Consumer Credit Directive. All loan applications must have proof of a capacity to repay.


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    #27
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    What appears to be happening here is that an individual Loan Officer is pulling the wool over the eyes of the Loan Committee in the Credit Union. There is presumably some box on the loan approval form to be ticked to indicate that previous loans have been repaid. Clearly, taking out loans and repaying them immediately to get round this condition is breaching the spirit of the loan condition. The loan officer gets to bump up her loan activity numbers, but this isn’t real community lending in the spirit of the CU movement.

    This reminds me of all the stuff that went on with dodgy mortgage approvals in the boom times, where terms and conditions were stretched to and beyond their reasonable limits to bump up loan approvals. And we all know where that got us.

    It is very disappointing to see CU staff and CU customers abusing the system like this. It’s a slippery slope, and will all end in tears.


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