Newbridge Credit Union Refusal of Credit Union Loan

wanda10

I applied for a loan for €1,500 and waited one week for them to get back to me after they did a credit rating check on me everything came back fine. I was refused on the grounds that I owe them €9,000 and that this would bring my balance back up. I have savings in the credit union of €4,300. I was told that all of the loan that I currently have taken out has to be clear before you can get another loan. I have been a member for 27 years and never missed a payment on my loan. I was also told I am an excellent customer and that I have a great credit record with them but I have still been refused. Has anyone had anything similar happen to them.

Sorry to hear that Wanda10. Doesn't really matter what happened other people as each CU makes their own rules on loans and top up loans. Also as each case is unique to the individual CU member its not something that an outsider can adjudicate on.
Sounds like you have a lot going in your favour.
If your loan was originally €30k and you brought it down to €9k without ever missing a payment (that means you never had to be phoned or written to for a payment), then it would seem odd that you are refused. However, if your loan was originally €10.5k & it has reduced to €9k, there may be some logic to the decision.
You should ask if EVERY loan in your CU has to be cleared in full before a fresh loan is granted, or is it just your loan. Also ask if this is their policy, or is it just in your case. In both instances ask when the loan system changed, and why.

jaymcg91

The CU I'm in mandates that to get a loan all previous loans have to be cleared, no exceptions. Fair enough in my mind.