Advice needed. First time credit union loan

snypers12

I have been saving with the credit union for the past 5 months and have 600 in my account. What are my chances of being able to get a loan of 3500-4000. I know the generally won't give this much for a first loan but has anyone had any experience with them doing this recently?

jaymcg91

Not a hope. Max you'd get is 3x, my Credit Union actually only lends out 2x for a first loan, to test your ability to repay.

harr

The max you might get is 2000, it's seems all credit unions have been told to clean up there act because there were some bad loans given out in boom times.
Our one is gone very strict with the max been 3 times your savings and you now have to show payslips and bank statement going back six months even for small loans,where as before if the loan was smallish you could get on the same day in cash.Also you might want to up your weekly savings a bit.
Have you only been a member for the last five months ? If so I would say you will need more savings or a longer spell as a member...

snypers12

jaymcg91 wrote: »

Not a hope. Max you'd get is 3x, my Credit Union actually only lends out 2x for a first loan, to test your ability to repay.

I know they are the general rules with their loans but I guy I work with had 1000 in his account and was able to get 4000 even though it was his first loan with them so there is exceptions to their rules. Just trying to figure out if anyone else has had similar experiences

snypers12

harr wrote: »

The max you might get is 2000, it's seems all credit unions have been told to clean up there act because there were some bad loans given out in boom times.
Our one is gone very strict with the max been 3 times your savings and you now have to show payslips and bank statement going back six months even for small loans,where as before if the loan was smallish you could get on the same day in cash.Also you might want to up your weekly savings a bit.
Have you only been a member for the last five months ? If so I would say you will need more savings or a longer spell as a member...

Im with them years but only started saving again recently. I am saving decents amounts each week but had to dip in a small bit at Xmas but back on track again

we'llallhavetea

I started saving last year in the credit union, three weeks went by, i had €90 in savings and applied for a car loan of 5000, got it! They go on your ability to repay i was told

Gatling

we'llallhavetea wrote: »

I started saving last year in the credit union, three weeks went by, i had €90 in savings and applied for a car loan of 5000, got it! They go on your ability to repay i was told

Don't you need to be saving 13 consecutive weeks before you can even apply for one

snypers12

we'llallhavetea wrote: »

I started saving last year in the credit union, three weeks went by, i had €90 in savings and applied for a car loan of 5000, got it! They go on your ability to repay i was told

You only had €90 and they gave you €5000?

we'llallhavetea

Yep! I had an account with them when i was a kid, it must have been inactive for 20 odd years, so they reactivated it for me. Its trim credit union. I was shocked too, but they told me it doesnt matter how much savings i have, its just matters that i can afford to repay. So i sent in 12 weeks of payslips and 12 weeks bank statements and two days later i was picking up €5000! I am paying 50 a week on the loan and 10 into savings so it will be cleared in 2 years.

snypers12

we'llallhavetea wrote: »

Yep! I had an account with them when i was a kid, it must have been inactive for 20 odd years, so they reactivated it for me. Its trim credit union. I was shocked too, but they told me it doesnt matter how much savings i have, its just matters that i can afford to repay. So i sent in 12 weeks of payslips and 12 weeks bank statements and two days later i was picking up €5000! I am paying 50 a week on the loan and 10 into savings so it will be cleared in 2 years.

Sounds nearly too good to be true! I'll hardly be that lucky. Gonna call into then tomorrow and see how it goes. Do you mind me asking how long ago you got the loan?

we'llallhavetea

snypers12 wrote: »

Sounds nearly too good to be true! I'll hardly be that lucky. Gonna call into then tomorrow and see how it goes. Do you mind me asking how long ago you got the loan?

Not at all, i got it last june! If your credit union has the same lending system and your bank looks good (no bounces!) and you can afford to repay i cant see why not tbh.

snypers12

we'llallhavetea wrote: »

Not at all, i got it last june! If your credit union has the same lending system and your bank looks good (no bounces!) and you can afford to repay i cant see why not tbh.

Fingers crossed so!

we'llallhavetea

snypers12 wrote: »

Fingers crossed so!

Best of luck, let us know how you get on!:)

snypers12

we'llallhavetea wrote: »

Best of luck, let us know how you get on!:)

Will do thanks

toadfly

snypers12 wrote: »

Will do thanks

Has it changed recently? I got a loan just under a year ago from local CU. Had to lock down 2000 of savings but got the 15000 car loan I wanted. Was never an issue.

CIARAN_BOYLE

Every cu has its own rules and policies

snypers12

Went in today to apply. The woman seemed positive but wouldnt give me much indication as to wether or not I might get it. Will keep ye posted how it goes. Should know Monday or Tuesday

Unfortunately there aren't two CU's the same in Ireland, so you are always better off hating to your CU to see what level of appetite they have for loans. Many if not most now base their decision on your ability to pay, and where relevant, your willingness to pay. Its an old style lending formula that says you can have 3 times your savings. It was very appropriate in its day, but less so now.

Find out what YOUR CU can do for YOU, as they were set up by the people for the people and you have a share in the ownership of the CU

In fairness the first loan you get will be the most difficult to get, as you have no record of repayments.

Crash Bang Wall

I find that it helped, well it helped me anyway, that when I got a loan in the CU that I knew a few of the people working in it, and had no problem getting loans as either a student or when I started working

snypers12

Said I better update ye. Got refused the loan today. Only reason I got refused is because I took a small amount at Xmas. When I say small it was only 150. Really annoyed now over this. Iv been saving between 50-100 every week with them.

we'llallhavetea

snypers12 wrote: »

Said I better update ye. Got refused the loan today. Only reason I got refused is because I took a small amount at Xmas. When I say small it was only 150. Really annoyed now over this. Iv been saving between 50-100 every week with them.

Ah ffs, what a pile of ****!! sorry snypers

snypers12

we'llallhavetea wrote: »

Ah ffs, what a pile of ****!! sorry snypers

My thoughts exactly! 😄

CIARAN_BOYLE

snypers12 wrote: »

Said I better update ye. Got refused the loan today. Only reason I got refused is because I took a small amount at Xmas. When I say small it was only 150. Really annoyed now over this. Iv been saving between 50-100 every week with them.

How much did you apply for and how much did you have saved?

snypers12

CIARAN_BOYLE wrote: »

How much did you apply for and how much did you have saved?

I applied for 3500 and had 700 saved as of today. They told me they don't go by savings anymore but by your ability to repay.

we'llallhavetea

snypers12 wrote: »

I applied for 3500 and had 700 saved as of today. They told me they don't go by savings anymore but by your ability to repay.

But then surely the fact that you took out a measly 150 at Xmas wouldn't change your ability to repay? Kind of ridiculous. Did they even suggest that you could apply again after awhile?

snypers12

we'llallhavetea wrote: »

But then surely the fact that you took out a measly 150 at Xmas wouldn't change your ability to repay? Kind of ridiculous. Did they even suggest that you could apply again after awhile?

Ya I thought it was only a small enough amount myself. It was the week before Xmas and I had 500 in my account before had. So I had 350 after withdrawing the money. And now I have double that in just over a month but that didn't seem to matter. They told me to try again after a while but I'm desperate for a car now.

dobsdave

snypers12 wrote: »

I applied for 3500 and had 700 saved as of today. They told me they don't go by savings anymore but by your ability to repay.

Probably the fact you had to use savings to get by over xmas may have alarmed them.
How many weeks have you been saving with them?

snypers12

dobsdave wrote: »

Probably the fact you had to use savings to get by over xmas may have alarmed them.
How many weeks have you been saving with them?

I have been saving since around October

dobsdave

snypers12 wrote: »

I have been saving since around October

every week since october would make about 16 weeks. so maybe strict cu.

jimmycrackcorm

dobsdave wrote: »

every week since october would make about 16 weeks. so maybe strict cu.

I think you're ability to repay is measured a lot by how long you can commit to saving. i.e. the fact you had to take money out shows you could miss repayments.

simoniz

My credit union is very strict, they can only lend you 50% of your shares which make me mad so I withdraw all my money. it's like they make money on my own money.