Credit union loan

Traceyfinn00

Hi all hope I'm posting in correct forum.....just wondering if someone has opened a new credit union account 6 weeks ago and has saved 1600 in that time can they apply for a 3000 loan and be successful I get 500 a week but 300 of that is cash in hand will this be a problem do you think?please no lecture on the issue of getting cash in hand I've not come to get any option on that thanks in advance

Jim2007

https://www.boards.ie/discussion/2058252707/credit-union-loan

Credit Unions are independent organisations, so experiences may vary greatly. In your case it will depend on the regulations of your CU and the assessment of the loans officer.

As for cash in hand payments, you are at a disadvantage because officially your income is 200 Euro p.w. for all kinds of financial decisions, such as loans, credit cards, loss of income cover etc... Nobody is going to take undocumented earnings into consideration, because there is no evidence you received them nor that they will continue. The consumer world works on credit, so it may have an impact on your life depending on what you want to do.

coylemj

https://www.boards.ie/discussion/2058252707/credit-union-loan

You only opened the account 6 weeks ago so they know very little about you. That's increases the probability that they will want evidence of your income before even considering if they will give you a loan. And what you will be able to produce is a piece of paper which states that your annual income is €10,400.

The current rate of Jobseeker's Allowance is €208 p.w. Which means that your official income is less than that of a person on the dole.

I'll leave it to you to figure the chances of someone lending you €3,000.

Pissy Missy

https://www.boards.ie/discussion/2058252707/credit-union-loan

I only had 1500 saved and got a 10k loan with a parent (who already had an account) to go there as guarantor, I was going to college and had to quit my job due to reasons of the particular course and the CU knew I had little income though recommend I take up a part time job, do you have someone that already has an account there to go guarantor for you?

L1011

Not only do I not think they'd give you a loan, they may have to call in to question your source of funds for your savings as that level of saving would be unsustainable (actually completely impossible) on your declared income.

Henry Ford III

The only people who can answer this are the Credit Union itself.

You need to ask them what are their requirements and explain your individual circumstances.

p.s. Declaring income at a lower level than the dole is likely to adversely affect you in a few ways. Be careful.

Traceyfinn00

Yes my sister and mother both have accounts for years yes I'll explain I get cash in hand and hope they take this at their own discretion when I apply

coylemj

https://www.boards.ie/discussion/comment/119297398#Comment_119297398

You might as well say you're on the dole and leave it at that. They will not take income from cash nixers into account when deciding whether to lend you money. And being part of the black economy might be considered a negative so I'd not mention it at all.

Traceyfinn00

The 1600 I've saved hasn't been in one payment I'm saving 250 a week to have gotten there I'm just hoping they see I have ability to pay it back regardless of where its coming from I could save the 3000 myself but I want to keep the money in credit union as savings and borrow it's for a surgery I need done

L1011

You're saving more than your official income. That is really not going to stand you well. Financial institutions have regulations they need to follow.

Henry Ford III

https://www.boards.ie/discussion/comment/119298891#Comment_119298891

Advising someone to tell lies really isn't a good idea either.

Credit Unions are all different so how they might treat untaxed income for loan purposes is entirely their own call.

coylemj

https://www.boards.ie/discussion/comment/119299257#Comment_119299257

I did not advise anyone to tell a lie.

Traceyfinn00

God no ill tell the truth lay it all on the table and hope they keep it at their own discretion to whether I'm suitable I do have 2 family members in same credit union with perfect credit there. And I'm from a small town where I'm known by staff in the credit union too

Jim2007

https://www.boards.ie/discussion/comment/119297398#Comment_119297398

So you are basically going to tell them that you have no qualms about breaking the laws of the land, but they can trust you with their money....

From a loans officer's perspective he'd be dumb to fly with that, because the minute anything goes wrong his head is on the block for being so dumb as to trust you!

Perhaps you'll be lucky.

Traceyfinn00

Ur making me sound like a criminal mastermind lol so if you are offered work cash in hand you would say no to it lol stop been a moron

Jim2007

https://www.boards.ie/discussion/comment/119301056#Comment_119301056

No definitely not, that is why I'm trying to point out how it looks from the other side of the table. Lenders don't give loans to people they don't trust and you don't build trust with them by telling them you are a rule breaker because they are depending on you to stick to the rules when they lend you money.

At the end of the day, you are the one that is looking for a loan, tell them what you like, you are the one that will be impacted by the decision.

bigroad

Usually you have to save with them for three months before you can apply for a loan.

Different unions have different criteria.

You should have no bother getting your loan.

Full stop.

Traceyfinn00

Update I did get my loan they appreciated I was been fully honest about my situation and couldn't have been nicer to me thank you all for your adiand help

Jim2007

https://www.boards.ie/discussion/comment/119332466#Comment_119332466

Thanks for the feedback. Very often people don't bother completing the circle by letting us know how it panned out.