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Credit Union shares against a car loan

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  • 06-08-2013 4:46pm
    #1
    Carraig95
    Closed Accounts Posts: 182 ✭✭


    Hi All!

    Just wondering about the credit union and using shares against a loan.

    Have applied for a car loan, and should hopefully get it as have solid income, bank statements but only a member a relatively short time etc

    What's the criteria with regards to shares against the loan amount?

    Thanks for any help in advance!!!
    Tagged:


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    #2
    RubyGirl
    Registered Users Posts: 1,275 ✭✭✭RubyGirl


    Could be wrong but they'll lock it for a least 2 years anyway.


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    #3
    jlm29
    Registered Users Posts: 3,818 ✭✭✭jlm29


    It's usually locked until such a time as your loan is less than the value of your shares, as far as I know. I started an extra savings account under the same membership no. (My savings 1 account), and I can access that money independent of my loan, and my shares. Maybe they would let you move some of your shares over to that, but they might not, as I think they're official line is that you can borrow 3 times your shares.
    I stand to be corrected on all of the above though.


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    #4
    Vologda69
    Registered Users Posts: 925 ✭✭✭Vologda69


    My credit union only allow you to borrow a maximum of 4 times your share holding. And you can't touch your shares until your loan is worth less.


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    #5
    Carraig95
    Closed Accounts Posts: 182 ✭✭Carraig95


    Nice one, I spoke to someone today who has a loan and they said they lock the shares alright until the loan is less than the amount of the shares. What I actually did today was transfer €400 from the 'shares account' to the 'access account' which means I should be able to draw that out, does that make sense?!?!?

    As far as being able to borrow three times the loan, I'm pretty sure you just have to have about 5% - 10% of the loan depending on your account.

    At least I hope so!!!


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


    Years ago you just needed to be paying in something regularly but now my cu will only let you borrow 4 times and even then you'd be lucky.


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    #7
    Carraig95
    Closed Accounts Posts: 182 ✭✭Carraig95


    Thanks for the help on that! I suppose it's fair enough really, needing the collateral against a loan!

    Another quick one - as I am a new member and seeking a first time loan they requested to do an ICB check. I have a loan out which I have been paying off for a number of years, and have never missed a payment (except for two in early 2008 after coming back from travelling). So should my credit rating be good enough for a CU loan?! A friend of a friend who works in AIB recently did a dummy run credit check as I was passively thinking of getting a mortgage in Feb, and he said it came back perfect as all repayments have been made, bar two a few years ago.

    really appreciate this, haaaaate the suspense!!!!!


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    #8
    peteb2
    Registered Users Posts: 1,813 ✭✭✭peteb2


    If you're a new member, forget it. The old way of doing it was twice what you had in your account for your first loan. So I can't seem them having loosened this up in the current climate.


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