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Paying off credit union loan

  • 26-04-2020 9:03pm
    #1
    Jamesyboid88
    Registered Users Posts: 108 ✭✭


    I have €2000 to pay off my loan of €6000 and have €2000 in savings. My credit union doesn’t open until Thursday so cannot contact them. I’m looking to pay off loan with the savings to clear it and reapply for a new loan. Would you credit union be happy with that or can I extend the loan


Comments

  • #2
    Zhane
    Registered Users, Registered Users 2 Posts: 1,156 ✭✭✭Zhane


    Jamesyboid88 wrote: »
    I have €2000 to pay off my loan of €6000 and have €2000 in savings. My credit union doesn’t open until Thursday so cannot contact them. I’m looking to pay off loan with the savings to clear it and reapply for a new loan. Would you credit union be happy with that or can I extend the loan

    My credit union has accepted savings to pay off the existing debt. The loan balance was much less than the savings though. Every credit Union is different so your best bet is to check with them on Tuesday.


  • #3
    Irishphotodesk
    Registered Users, Registered Users 2 Posts: 1,896 ✭✭✭Irishphotodesk


    Credit union loans can often be granted on the basis of security (ie. A positive balance in your account)

    Sometimes the amount loaned is a multiple of the balance, so if you pay off your existing loan you will have nothing as collateral/security.


  • #4
    anewme
    Registered Users, Registered Users 2 Posts: 12,010 ✭✭✭✭anewme


    Most credit unions now loan outside the old rules. I borrowed 40k off mine and had about 300 euro in savings.


  • #5
    Teena20
    Registered Users Posts: 109 ✭✭Teena20


    Hi, going by my own experience they can top up your present loan if that's what you would prefer, especially with the amount in your shares, (without withdrawing shares) i have been able to top up an existing loan and keep payments the same but obviously for an extended period... :)


  • #6
    GrumpyMe
    Registered Users, Registered Users 2 Posts: 1,195 ✭✭✭GrumpyMe


    Ability to repay is the key criteria now. If you can satisfy THEM that you have the ability to repay you will be approved. Other conditions may apply of course.


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  • #7
    Cona
    Closed Accounts Posts: 591 ✭✭✭Cona


    Just to echo the above as I looked into similar recently...CU wouldn’t need you to pay off your existing loan, they would most likely just top up your loan.

    So if you wanted 10k new loan, they would give you 8k and you keep the 2k you would have used to clear old loan. Makes sense really


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