Credit Union Loan

CocoSoft25

Hi,

Just looking for some advice.
I have a loan with my credit union and at the moment I pay more than the required amount to pay the loan off. I also put extra money into my shares.
I want to pay the loan off faster and was thinking of stopping my shares and put more against the loan balance.
Would I be correct in saying that paying more off the loan balance would lower my interest?

amcalester

It will lower the amount of interest you pay, as you will be reducing the capital but the interest rate will stay the same.

Basically if you pay the loan off faster you will pay less interest over the course of the loan.

CocoSoft25

Thanks!

Just wondering if you could explain how the interest rates change from week to week? I was told they balance out at the end of the year?
Some weeks the interest I pay is more than other weeks? Just wondering is there a way to calculate that?

GBX

CocoSoft25 wrote: »

Thanks!

Just wondering if you could explain how the interest rates change from week to week? I was told they balance out at the end of the year?
Some weeks the interest I pay is more than other weeks? Just wondering is there a way to calculate that?

My current loan is almost finished and the interest has been decreasing as a % of the loan on a weekly basis. The only reason I would imagine the interest increasing is if a payment was missed?

CocoSoft25

No, its paid every fortnight via my payroll, so no payments have been missed, I check my statements regularly too and haven't noticed anything suspicious. I noticed that the first payment of the year the interest was very low then the following payment the interest was twice the amount.

GBX

CocoSoft25 wrote: »

No, its paid every fortnight via my payroll, so no payments have been missed, I check my statements regularly too and haven't noticed anything suspicious. I noticed that the first payment of the year the interest was very low then the following payment the interest was twice the amount.

Maybe give the credit union a call - they will be able to clarify any queries on the interest.

Buttercake

Hi folks, not to hijack a thread - I have a similar question and didn't want to start another CU Loan thread!
--

I have a loan out with my CU with 9,500 left on it, it was 17,000 and I have a standing order each month of 400 going in to pay it off 350 and 50 into my shares. My shares are around 2,500

I've had loans before and paid them off early - amounts less than 5k and I have a good relationship and with them for 10years, standing order always going in each month.

Now I am looking for a loan of 15,000 to add to my existing loan, bring it up to 24,500.

Im just wondering if anyone has experience of doing something like that or would they not do something like that ? I dont want to send an application and be refused? id rather find out if it was possible and then apply?

CocoSoft25

Buttercake wrote: »

Hi folks, not to hijack a thread - I have a similar question and didn't want to start another CU Loan thread!
--

I have a loan out with my CU with 9,500 left on it, it was 17,000 and I have a standing order each month of 400 going in to pay it off 350 and 50 into my shares. My shares are around 2,500

I've had loans before and paid them off early - amounts less than 5k and I have a good relationship and with them for 10years, standing order always going in each month.

Now I am looking for a loan of 15,000 to add to my existing loan, bring it up to 24,500.

Im just wondering if anyone has experience of doing something like that or would they not do something like that ? I dont want to send an application and be refused? id rather find out if it was possible and then apply?

They will just refinance your existing loan! It depends on what the purpose of the loan is for will depend on the interest rate. Most credit union websites have a loan calculator .

Mollyd90

In my credit union they will only give you €15000 plus whatever value your shares are and they are strict at enforcing that policy. Probably best to ring your credit union.