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Credit Union Loan - 6 months bank statements

  • 24-01-2017 5:53pm
    #1
    Cona
    Closed Accounts Posts: 591 ✭✭✭


    Hi all
    I have inquired about taking a loan out with my local credit union. They have asked me to provide the usual documents including 6 months current account statements. 

    Now, I earn a good wage and financially this should not be a problem. 


    However, me and my partner have just recently purchased a house so my current account at the moment is not looking too healthy. For example, 6 months ago, I would have a significant amount of money in the account which was used as the deposit on my house. There are a number of large transactions in my account (house deposit, payment to my solicitor etc) which are all part of buying the house. 
    I have also now spent most of the remaining cash on the house which I have only just purchased. 

    So essentially I have pumped all my cash into the house. 
    Is this going to be a huge negative on the loan application? Also, if I apply for the loan and they deny my application, does it get tracked as part of my credit history? 
    thanks...


Comments

  • #2
    Ragnar Lothbrok
    Registered Users Posts: 1,860 ✭✭✭Ragnar Lothbrok


    I'm pretty sure that the reason they look for 6 month's worth of bank statements is to do with the anti money laundering legislation that was put in place a few years ago. I doubt they look too closely at the actual details.

    I've successfully applied for several (smallish) loans from the CU in the past few years, and always provided them with statements. I'm pretty much constantly in my overdraft, so your situation seems much more favourable than mine :D

    As with all CU loans, it depends on the amount you're looking for compared to your current savings, the amount you can comfortably afford to pay back, and your savings record with them to date.

    Good luck with the application!


  • #3
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,921 Admin ✭✭✭✭✭Toots


    I'd say you'll be grand, it'll probably be obvious from the statements where the money went. The purpose of the 6 months statement is just to see how you manage your account day to day and to prove income and outgoings. Also to check if you're doing things like a lot of online gambling which is a bit no no for a loan application.


  • #4
    chuckles30
    Registered Users, Registered Users 2 Posts: 1,380 ✭✭✭chuckles30


    as the others have said - it may not be a problem at all. In fact, it shows you had money in your account to pay for lots of your house purchase related expenses.

    Presumably they are aware that you purchased a house recently - if so, it is to be expected that you would have these once off large transactions.


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