# Loan question



## dave29 (21 Feb 2015)

Hi,

I've been in my credit union for about 4 years. 

I've had a few loans and they are paid off. I've about 1300 in savings. 

I want to get a load of 10,000

I have 2500 in cash that I was going to put into my credit union and then ask for a load of 10,000.

Is this something they dont like ? Would i be getting paying in 500 a week for a few weeks and then applying? or would it matter ? 

I've heard you can roughly get 3 times your saving amount as a loan. 

any advice would be great. 

thanks.


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## Sandals (22 Feb 2015)

While its 10 years since I got a cu loan, so market has changed....id just watch the interest youv to pay...even various cu differ and by going to a bigger cu only 20mins away or worse an hr away but where I worked a cheaper loan could have been got...


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## dave29 (23 Feb 2015)

Sorry.. I don't understand your reply. 

Can you re-read my post. I was asking about adding funds to my account in order to get the loan i need. Not the interest i'd pay. But thanks for that advice in anyways. But I won't be moving my money from one to another.


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## Protocol (23 Feb 2015)

Sandals said:


> While its 10 years since I got a cu loan, so market has changed....id just watch the interest youv to pay...even various cu differ and by going to a bigger cu only 20mins away or worse an hr away but where I worked a cheaper loan could have been got...


Note that you can't shop around between CU, as you can be a member of (typically) only one CU.

So what you suggest is impossible.


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## Gerry Canning (23 Feb 2015)

Protocol said:


> Note that you can't shop around between CU, as you can be a member of (typically) only one CU.
> 
> So what you suggest is impossible.


..........................................................
Dave,
Do not put in the 2,500 cash , just ask to borrow 7,500.
Credit Unions generally have  money to lend.
You want k7.5 .
K10 @ 7% over 48 months = 180 per month.
What the CU will need is to check your ability to pay.
1. Are you in good employment.
2. What is your average Nett weekly pay.
3. Take , rent/mortgage/credit card etc.off your pay.
CU can then see what you can afford.

If at the end of that they see you have ability to repay you are well on the way.

They may have conditions that you have to have so much in savings  to borrow  but just ask them what their in-house rules are and can you apply etc..
Given that you have had other repaid loans you will get a fair hearing.


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## dave29 (23 Feb 2015)

I'm nearly sure you can only barrow 3 x you savings but I will look into that . 

I have a good enough job, 40k year before tax,
I've been in this job for just under 6 years. Only very been unemployed for 5 weeks since I was 15 years old. ( old job closed down ) 

Rent is low 250/month
Reason for loan is to pay off credit card debit from years ago.. i'm sick of wasting money on it.. I want to get a loan pay off the credit card and cancel it.. and just have 1 bill ( the CU loan ) get that paid off and start saying for a house.

At the moment i'm direct debiting in 50/week to my CU account. 

If i got this loan i'd up it to 100 / 125 a week as I wouldn't have the CC bills to pay, 
I could probably afford 150/week


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## Sandals (23 Feb 2015)

Protocol said:


> Note that you can't shop around between CU, as you can be a member of (typically) only one CU.
> 
> So what you suggest is impossible.



Sorry didnt know this, didnt mean to mislead...I got 40k over 5 yr interest 13k...I know I could have got better deal in a bigger cu was my point


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## Slim (25 Feb 2015)

Sandals said:


> Sorry didnt know this, didnt mean to mislead...I got 40k over 5 yr interest 13k...I know I could have got better deal in a bigger cu was my point


It is quite possible to be a member of more than 1 credit union, e.g. live in town A, work town B. Qualify to be a member in each. Can't just shop around for lowest rate though.


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## RichInSpirit (26 Feb 2015)

Getting a CU loan nowadays might be harder as most of them are now members of the Irish Credit Bureau ICB. 
You probably have good repayment capacity but that old credit card debt is probably on the ICB. 
From a different point of view the credit card company would probably be happy to get a lump sum partial settlement of say 25% of the debt. 
I'd find out what they would settle for first. And if you still need to get the CU loan I'd be completely honest with the CU about your reason for the loan as they will probably find out about it when they search the ICB.


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## dave29 (26 Feb 2015)

I checked the ICB a few times .. meaning i asked for reports.. my cc info is not there. My credit score is very good. Close to 800 the last time I checked and I still had these CC bills with all the ICB checks i've run. 

I've 2 credit cards and they are at the limit, I never miss a payment for them. Each month they get paid there minimum. But the interest and other stuff on them is like 1 step forward and 2 steps back. 

What you do mean by "I'd find out what they would settle for first." ? 

Am I describing my CC bills wrong? .. I owe the CC company's .. they are not hounding me for it or sending me letters.. I'm within my limits on the cards. I just want them gone. If I stopped paying them or was unable to pay them I'm sure it would be a different matter.. But as I said i'm paying them the min each month.. I just want them gone!


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## Bronte (26 Feb 2015)

How much do you owe on each credit card and what is the interest payment on each.

First step is to talk to your credit union, that's what they are there for.  They are very approachable.  Credit unions are awash with money and need to loan out money to make money for their members, it's currently all over the radio about how they want to get into the mortgage deposit market so I'd say you're an ideal canidate for them. 

(and of course you can have more than one credit union account, lots of people do)


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## RichInSpirit (26 Feb 2015)

Sorry Dave, I misunderstood your credit card position. Just that I'm so used to credit card default I assumed you weren't paying anything towards your credit card.
You probably have a perfect ICB record so.
I'd still be honest with the credit union about why you want the loan.


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## dave29 (26 Feb 2015)

I owe about 4400 on one and 5800 on another. I"m not sure what the interest rates are.. but without using them it adds about 130 to them each month ( total not each ) 

So depositing the 2500 at once shouldn't be an issue ? .. 

I suppose i'll talk to them.


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## RichInSpirit (26 Feb 2015)

In your case it looks like perfect sense to get a lower interest loan to pay off the higher interest credit card debt. Only destroy the credit cards when they are cleared to remove the temptation. 
Your clean ICB record would be a definite plus in the future looking for a mortgage. 
I don't know what's the best approach with the €2500. Maybe if you put it into the credit union gradually over a period it would show plenty of repayment capacity. 
My ICB record is fairly colourful by now so i'm not in a position to ask any institution for a loan for a long time.


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## Slim (26 Feb 2015)

dave29 said:


> I owe about 4400 on one and 5800 on another. I"m not sure what the interest rates are.. but without using them it adds about 130 to them each month ( total not each )
> 
> So depositing the 2500 at once shouldn't be an issue ? ..
> 
> I suppose i'll talk to them.


The Three times rule is not set in stone. It's really 4x but flexible. As said above, it is about your capacity to repay. The repayment on €10k would be higher than the repayment on €7.5k, naturally, so it's a matter of which is more comfortable for you. I would probably agree with using the €2,500 and just borrow €7.5. You will save more interest than the value of dividend and included insurance. Do tell them it's to clear cc. They love to get members away from cc debt.


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