# Stupid Question re: Credit Union



## kerbs (9 Dec 2008)

hey there - I need to get a 10k car loan - now please dont give out to me all at once!! But we have new baby on the way in feb and need new car before the big arrival. We are expecting to come into money in both feb and march so am hoping that the car loan will only be temporary. That we should be able to pay 8k off it by April and then the remaining 2k bit by bit every month... My question is- is the credit union the cheapest place to go for this kind of loan? I have a small amount of savings in my local CU but most of our savings are in AIB (those savings are ring fenced for something else) .. Will the CU consider us if we have not been saving with them regularly despite the fact that I am a member for the last 6 years?? Advice appreciated... sorry if this is a stupid question but I couldnt find the answer on itsyourmoney.ie
Thanks!


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## woodbine (9 Dec 2008)

check out the credit union website, it should list the current rates for various types of loan. I can't say whether it's the cheapest rate available but i do know that you will need to have a percentage of the loan you're looking for, in your account before being approved. They will also need to see regular deosits, so if you;re going to apply then start immediately, even if it's €50 a week.

as far as i'm aware the different CU's offer different ratios:

eg, CU No1 might require a one third 'deposit'

CU No2 might only require one sixth.


other institutions do not require 'deposits' to be held on the account for the term of the loan (eg banks). And there's a bit of paperwork (as you'd expect) for getting a loan. 

I applied for a loan this year with a CU i'd been a member of for 20 years, and i had to reapply and then appeal the refusal i eventually got(after 3 weeks of getting extra quotes etc to them). A few days later they rang to say they'd made a mistake and of course i could have the loan. I politely refused and closed the account.


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## Celtwytch (9 Dec 2008)

It's not a stupid question.  And I'll try not to give a stupid answer 

A lot of Credit Unions have a rule that they will lend no more than 3 times your savings.  This isn't necessarily a hard and fast rule, though.  You say you're not a regular saver with them, but the fact that you have been a member for 6 years may stand to you.  Although you might find a more competitive interest rate with another lender, do read the terms of the loan carefully - it may actually cost you money if you repay a fixed-term loan ahead of schedule, as you plan to do.  The Credit Union doesn't have any such charges, that I'm aware of.  Best advice I can give is to make an appointment with your local Credit Union to discuss a loan application with them.


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## Complainer (9 Dec 2008)

Shop around using APR rates to compare. Make sure you get a variable rate, with no penalties for early repayment. If you have to keep matching funds on deposit. This is costing you more again.


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## Bob_tg (9 Dec 2008)

kerbs said:


> We are expecting to come into money in both feb and march so am hoping that the car loan will only be temporary.


 
Why not wait until April and see whether the money comes in for sure?  It's unlikely you'll need to do a whole lot of driving with a newborn in the first couple of months...can you not hold off til then?


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## rmelly (9 Dec 2008)

plus consider spending less on the car if you can?


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## xpot4 (9 Dec 2008)

hi 
i just got a cu car loan today, i only had to have €500 in savings to get loan of €20,000 , 6.9% apr and no penalty for early repayment 
good luck


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## allthedoyles (9 Dec 2008)

check apr rates on www.itsyourmoney.ie


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## kerbs (10 Dec 2008)

hey there- thanks for all the replies and glad I wasnt being completely thick  Am afraid it is not possible to wait on new car- current one is 2 door + we have a toddler already- my back is simply not able for it, need a 4 door with lots of space!!... I'll make an appointment with the credit union - sounds like it could def be worthwhile... 
Thanks!
Kerbs


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## cleverclogs7 (10 Dec 2008)

If you have good standing with your CU then you should be ok.I have a few k saved and when i asked how much i can borrow.i was told up to 4 times my savings.
but do you really need a 10k loan.you can get good cars 2002-2004 for under 7k.
Good luck with the new baby


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