Credit union issues

dantheman95lbp

Hey guys, I don't know if this is the right place for this so bear with me. I have about €3000 euro in my account at my credit union in Mitchelstown, Co.Cork. I am a student in UL, and am just wondering if I can withdraw money from a credit union near the University, Plassey Credit Union to be precise. Do they work the same way as a bank would regarding withdrawels, or do I have to take the money out of the Mitchelstown credit union?

phormium

No is probably the answer. There is usually no link between credit unions unless one is a sub office of the main one if you follow. Plassey is more likely to be affiliated to a Limerick credit union if at all, unlikely to be a Cork one.

dantheman95lbp

Oh, alright that kinda sucks. Suppose I would proably be better off if I moved all the money to a bank account. Thanks anyway dude

sedric

If you need the money fair enough, if not all then depends on the bank as you may be hit by charges.
I would talk to the credit union in Limerick, as they are essentially independent units
It may be advantageous to leave money with a credit union as loans there ( at least those within savings ) are very good value.
Also you build up a credit rating that will stand to you in the future.

Best of luck

mickzer

Is there a problem with splitting it [€1500 in each]? Or is it even possible?

dotsman

sedric wrote: »

If you need the money fair enough, if not all then depends on the bank as you may be hit by charges.

OP is a student - no charges.

sedric wrote: »

It may be advantageous to leave money with a credit union as loans there ( at least those within savings ) are very good value.

Not necessarily. Different credit unions, at different times can offer good, bad or somewhere in between value.

sedric wrote: »

Also you build up a credit rating that will stand to you in the future.

That's not how credit ratings work.

Not sure what exactly you are looking for OP (you don't state in your post), but if you want to use banking services (debit card, credit card, EFTs, standing orders, direct debits, internet/phone/tablet banking , FX, global ATM/POS network when travelling, then you should really have a bank account (if you don't have one already).

sedric

Hi,
You are correct that a student may not be charged by a bank.

However, it is correct to say that credit ratings are influenced by regular repayment of a credit union loan.

This is the case if the CU is in the Irish Credit Bureau (ICB), and most are.

If it is, and a person takes a loan through that credit union and pays it regularly it will influence his /her credit worthiness.

This is so because most Irish financial institutions are in ICB and if you apply for a loan, they will ask permission for an ICB check. If you give it then the regular repayment to the CU will show and influence the decision positively.

If you know differently please post.

All the best

dotsman

But the OP isn't taking a loan with the Credit Union. He/she is looking for a current account. Simply putting his/her money in a credit union account is not going to do anything for his/her credit history - The ICB won't know about it, nor care.

If the OP does look for a loan in the future, he/she will likely get a cheaper interest rate and definitely build up a credit history with a bank (as opposed to "probably" with a credit union).

sedric

That's correct dotsman, if there no loan then there is no ICB record.
I guess "it's your money is a useful place to look up for acomparing current accounts.
http://compare.consumerhelp.ie/CurrentAccount

sedric

Hi dotsman,
I'm interested in your point about banks giving better value in loans than Credit Unions.
Depending on the credit union and depending on the purpose, it's often the case that the credit union provides better value.

On the ICB , do you believe that banks will ignore a good ICB history because it's with a different institution e.g. a credit union?