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Credit Union Joint Account

  • 20-08-2018 7:38pm
    #1
    Darren 83
    Registered Users, Registered Users 2 Posts: 1,685 ✭✭✭


    So the better half applied for a loan with the CU, as pat of the application they wanted my details bank statement and pay slips. They wrang today and wanted to speak to both of us they rejected her application but said if we open a joint account she might get approved, thought this was odd as this was never a problem before. Anyone have this happen to them?


Comments

  • #2
    kilburn
    Registered Users, Registered Users 2 Posts: 3,912 ✭✭✭kilburn


    Strange as some credit unions wont let you open a joint account.

    Would you going guarantour not be enough if you were able to, might be worth exploring that first


  • #3
    Darren 83
    Registered Users, Registered Users 2 Posts: 1,685 ✭✭✭Darren 83


    kilburn wrote: »
    Strange as some credit unions wont let you open a joint account.

    Would you going guarantour not be enough if you were able to, might be worth exploring that first

    She never needed a guarantor before so why now? She is on the same money so nothing has changed in fact My income has changed for the better.

    They wanted to talk about us opening a joint account but I’m not really fond of the idea.


  • #4
    phormium
    Registered Users, Registered Users 2 Posts: 3,345 ✭✭✭phormium


    Credit Unions are much more regulated now than before in the wake of all the bank troubles, she may no longer fit their present criteria and rules under affordability level.


  • #5
    Darren 83
    Registered Users, Registered Users 2 Posts: 1,685 ✭✭✭Darren 83


    phormium wrote: »
    Credit Unions are much more regulated now than before in the wake of all the bank troubles, she may no longer fit their present criteria and rules under affordability level.

    The only reason I can think why they would want a joint account is that I'd be responsible for the loan as well if she defaulted on it. This I think would be less of a risk for them. Will be chatting with them today see what is the issue.


  • #6
    Spocker
    Moderators Posts: 6,864 ✭✭✭Spocker


    Darren 83 wrote: »
    The only reason I can think why they would want a joint account is that I'd be responsible for the loan as well if she defaulted on it. This I think would be less of a risk for them. Will be chatting with them today see what is the issue.

    You don't need to open an account for that, you can just be a guarantor on the loan, without needing an account


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  • #7
    Darren 83
    Registered Users, Registered Users 2 Posts: 1,685 ✭✭✭Darren 83


    Spocker wrote: »
    You don't need to open an account for that, you can just be a guarantor on the loan, without needing an account

    I was wondering why they didn’t mention it but Teller did say a lot of people get joint accounts to get loans approved.


  • #8
    glic71rods46t0
    Closed Accounts Posts: 1,074 ✭✭✭glic71rods46t0


    Most changes in lending policy in credit unions are down to Central Bank regulatory "supervision". Supervision is now pre-emptive rather than reactionary so credit unions are being told, very specifically, to tighten on lending criteria because it could lead to loan defaults regardless of the fact that the majority of credit unions are well run and experience very low default rates.
    The forced changes to lending practices in credit unions is leading the public to think that credit unions are now "just like the banks"


  • #9
    Spocker
    Moderators Posts: 6,864 ✭✭✭Spocker


    h5iumeo7vckd63 wrote: »
    The forced changes to lending practices in credit unions is leading the public to think that credit unions are now "just like the banks"

    This is correct, and very well put


  • #10
    glic71rods46t0
    Closed Accounts Posts: 1,074 ✭✭✭glic71rods46t0


    Affordability must be demonstrated by the borrower(s) against very specific metrics including debt service ratio and residual income (taking into account ISI defined reasonable living expenses as well as all contractual outgoings e.g. mortgage/rent, other loans etc).
    The Central Bank does not allow credit unions to take a guarantors income into account for affordability purposes so now credit unions are either setting up joint accounts or seeking partner consent to use the partners pay slips and bank statements to help demonstrate affordability. Again the public thinks that credit unions are "becoming just like the banks" but the reality is that it's all been pushed by the Central Bank.


  • #11
    Darren 83
    Registered Users, Registered Users 2 Posts: 1,685 ✭✭✭Darren 83


    Thanks for the feedback, so they wouldn’t allow my partner to take the loan out even with my income included. They did however approve me for the loan.

    The only reason they wanted a joint account is to spread the risk, I know it’s nothing personal just the way things are. It’s a little frustrating for my partner as credit history is good has no problem paying it back.


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  • #12
    glic71rods46t0
    Closed Accounts Posts: 1,074 ✭✭✭glic71rods46t0


    Well at least you got the loan. I think the majority of the public think that the only criteria that matters is your credit history. Credit history simply doesn't measure your ability to repay into the future.
    A person with a good income but poor credit history may be a better bet than a person with a poor income but good credit history


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