# Loan secured on shares - Credit Record ?



## danash (20 Aug 2013)

Hi,

I have had some financial issues in the last year and my credit record is shot. I wouldn't even get a toaster in Harvey Norman.

I am out the other side now and have some cash in the CU and am expecting another amount soon. 

I will have some expenses for my daughter in college soon and wonder if the CU will give me a loan to the value of my shares/secured on my shares even though my credit record has this one year blip ( exemplary for the previous 20 years )

I would rather not simply use up my cash for the college and am happy to /can pay the interest on the loan on a monthly basis. 

In my view the CU has security so are covered....how do you think they will look at this ..?


----------



## SarahMc (20 Aug 2013)

I think you will be ok. Have you repaid any CU loans in the past, that would help your application? Also if you have been saving regularly rather than lump sums.

In any case if you are seeking a loan equal to, or a bit above your shares, I think your application should pass.


----------



## jamieb (22 Aug 2013)

Hi 

My son applied for a top up loan last week.  He had nearly paid off this 6k loan and it was his second loan with 100 percent record of paying every week.  On his second loan he rang p and was approved over the phone.  This time he had to go on Monday night , fill out a form and was told he would be checked and they would go to ICB.  He did have a black mark re a student credit card and has been refused the loan in the credit union.  So his record in the credit union does not count at all, they are like a bank now so I dont know if he will ever get a loan from them now.  Also my Dad , went guarantor for 2 previous loans as this was a requirement and he was going guarantor again but they said you have to be approved first and he wasnt.


----------



## Brendan Burgess (22 Aug 2013)

Hi danash

When you say you are out the other side, have you paid off all your creditors? 

You might not get a toaster in Harvey Norman, but if you have paid your creditors, your ICB record will begin to mend. 

Brendan


----------



## WizardDr (23 Aug 2013)

Its worse than @jamieb has alluded to.

Have a look at Sections 76A to S76R of the 2012 Act.

Insane. End of Credit Unions.

The CBI have concluded - reduce risk by elimination. They are cooked. 

The whole ethos of knowing your member is gone out the door with the ICB. This ICB is now a very valuable asset owned by .. the Banks.. and the CBI have directed CU to comply or be jailed.


----------



## jamieb (23 Aug 2013)

Yes WizardDr, its a shame that it is so black and white now.  Obviously there were a lot of bad debts which was affecting things but there doesn't seem to be any grey area at all.


----------



## netz (25 Aug 2013)

Our local credit union is also using ICB black marks as a reason for refusing a loan, we asked for top up of 500, and we were told bad ICB record was reason for refusal. 
I can see the return of the illegal money lender en mass......


----------



## wysiwyg (8 Sep 2013)

Many Credit Unions dont need to check your ICB or income details if you re borrowing less than your shares. Some do, as they are all independently run by their own board & management.
ICB is not the be all & end all of decision making. It's a guide, as is the payment history of the borrower, the savings history, and the current & future income to service any & all loan repayments .  There is really no point in adding more debt to someones plate, if they cant service the debt they have already. 
Credit Unions are there to HELP members, not just to blindly say yes every time. If you encounter any problem, just arrange to speak with a manager and see what you need to so in order to get the loan you want. 
From the 1st October 2013, the CUCORA12 Credit Union act places much more emphasis on managers managing and Boards looking after Strategy. Managers do want to lend, and the staff will be guided by what they deem you can afford. Sometimes your credit rating will have a small blip that is not an issue. Other times your credit rating will show credit card debt written off or at legal collection, and clearly that is a signal to a lender.
From the little I know, Credit Unions say YES more often than any other lenders, and give you the decision as fast as you need it. Credit Unions know that they would not exist without their members, and they were set up to provide a service to members, and this is what they strive to do every day. 
Its good to talk!!


----------



## danash (13 Sep 2013)

Brendan Burgess said:


> Hi danash
> 
> When you say you are out the other side, have you paid off all your creditors?
> 
> ...


 

Brendan.....I have defaulted on two credit cards and have payment schedules in place. I was only standing still with the minimum payment so I negotiated with them to freeze interest and now I am paying the entire amount back with no additional interest. Capital sums were approximately 13K.

I will be doing this for approximately 4 more years so my credit wont repair until that is completed + 5 years.

Dont get me wrong - it was the best way to re organise my finances as I was paying out silly money and getting nowhere and this agreement works albeit with a ding in my ICB.

Neither card is from a state supported bank and I am not causing any impact on taxpayers.

Seems there is conflicting evidence from experiences so I guess I will just take the plunge and see how they react. I would expect that having the entire amount secured by shares would be a good commercial decision.


----------

