Travel Loan From Credit Union For Unemployed

mckenna94

Hi there,

Just a quick query. I'm intending on going travelling during the summer, only for 6 weeks and would be looking to get a loan from the credit union. It won't be much, say 2,000 at the most. I've been a member since I was 12 and have had numerous loans which I've always paid on time or early. But at the moment I'm not working full time, just doing temp work through an agency when there's work and when not I'm getting social welfare payments. So basically my question is does anyone have any experience of taking a loan out while working casually? Also just to note I have 5,000 already saved and my folks are willing to act as guarantees (but these already have a loan out so not sure if this makes a difference...) Obviously I will be making an appointment to speak with someone in person but just curious if anyone else has been in the same position and was loan approved?

Thanks a mil! :-)

sedric

If you want 2000, and have no loans, and have 5000 in savings( in the credit union) then provided you can agree a practical payback, it should be an easy one for the credit union.
This is because your savings are a security against the loan.

If however your savings are elsewhere, or you have a loan outstanding up to the value of your savings then the discussion is different. You may need a guarantor.

By the way, if you have savings in the cu , and your loan total is less than your savings e.g. you have 5000 and you have no loan and the new loan is 2000, you will get a special low interest rate usually.
All the best

dotsman

Why do you need a loan if you already have 5K? Could you not spend the 2K out of your existing 5K. Is it that you are planning to spend 7K on your holidays? If so, then (besides the absolutely terrible financial decision to take out the loan:eek:*), you will have effectively no savings left with the CU. Given the uncertainty of your future income, the CU shouldn't lend the 2K, but there might still be a few Credit Unions living in a dream world that do.

*From both your's and a lender's perspective, if you are borrowing the 2K to spend on top of the 5K you already have, then this is a very risky loan that could land you in trouble should things not work out well in relation to your uncertain future income and I would seriously urge you to reconsider.

MagicMarker

So you have 5k, but want to pay your credit union interest on a 2k loan?

Makes sense.

flutered

MagicMarker wrote: »

So you have 5k, but want to pay your credit union interest on a 2k loan?

Makes sense.

plus 1,000 i agree, as when the loan is paid back the savings are intact, if the 2k was removed from the savings the op, well me personall would have difficulty replacing it, remember lots of people recomend folk to get a c.u. loan to pay off credit card or money lender debt.

MagicMarker

flutered wrote: »

plus 1,000 i agree, as when the loan is paid back the savings are intact, if the 2k was removed from the savings the op, well me personall would have difficulty replacing it, remember lots of people recomend folk to get a c.u. loan to pay off credit card or money lender debt.

Why would you have difficulty replacing it but not have difficulty paying back a 2k loan + interest? That's all in your head. If you can pay back a loan then you can pay into your savings directly without having to pay interest.

People recommend you get a CU loan to pay off a CC because of the lower interest rates. How many people do you know would recommend that you take out a loan from the CU to pay 2k in CC debts while you have 5k in savings? I think most sane people would recommend you use your savings to pay your debts.