# Bad credit history - what are my CU loan chances?



## Joanneh (31 Mar 2010)

I am looking to borrow 2k off the credit union. I currently have €3200 there in savings. I've never borrowed off them before, have always just withdrawn a few hundred here and there but have saved with them, on and off for the last three years.

I will continue to save €1000 a month for the next 5 months, and then in August I'll be looking to borrow €9500. 

I am earning enough to be able to pay that off along with my mortgage and other commitments, and have my payslips ready to prove it.

My problem is this: when I lost my job last year, I missed three payments on my Tesco credit card. It shows up on my credit report as three payments in a row missed, with the current amount owing on the card as €550. I was out of work for 4 months but haven't had a problem since then, and my record shows that in the 8 months since that happened, I've had a perfect repayment record.

Could anyone make an educated guess as to how this will affect my borrowing ability with the CU? They are registered with the ICB so they may well check my credit history. On my credit report I also have two other loans with no repayment problems, both adding up to about €4000 in total.

I could just pay off that card before I apply for either loan, would that make a difference?


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## niceoneted (31 Mar 2010)

Why do you need to borrow 2 k when you have more than that in the CU. It doesn't make sense or perhaps I'm missing something here.


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## MANTO (31 Mar 2010)

Its a no brainer for the CU - your savings outweigh your borrowings so you are no risk to the CU. Loan approved.


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## Joanneh (31 Mar 2010)

Thought it might help my case in the future if I can demonstrate a good repayment ability? Should I just withdraw it instead? The woman I spoke to there last week said if I want to take out a biggish loan that it would be good to take a small loan first and demonstrate that I can pay it back. 

I didn't mention to her about the credit history.


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## Joanneh (31 Mar 2010)

MANTO said:


> Its a no brainer for the CU - your savings outweigh your borrowings so you are no risk to the CU. Loan approved.


 
Thanks for this - but my borrowings *will* outweigh my savings in August if approved, by about 3k.


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## MANTO (31 Mar 2010)

Joanneh said:


> Thanks for this - but my borrowings *will* outweigh my savings in August if approved, by about 3k.


 
Apologies i misread - if you have a look at my reply here hopefully this should answer some of your questions.


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## niceoneted (31 Mar 2010)

If it was me I wouldn't be borrowing the money if I didn't need to.


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## Joanneh (31 Mar 2010)

Thanks for that Manto.
I currently repay the following per month:

Mortgage - €500
Loans €233
Credit card €75

And I earn about €2600 per month net.

So I definitely would be able to make repayments.
I would really like to know what my chances are of getting the bigger loan in August as a lot hangs on this happening, and if my chances are poor then I will need to look at other options asap.


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## Joanneh (31 Mar 2010)

niceoneted said:


> If it was me I wouldn't be borrowing the money if I didn't need to.


 
I see what you mean, but I was only going on what the clerk in the CU said, to increase my chances for the big loan.


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## MANTO (31 Mar 2010)

Joanneh said:


> Thanks for that Manto.
> I currently repay the following per month:
> 
> Mortgage - €500
> ...


 
Based on the above, this leaves you with €1792 per month.

If you get a 6% Car Loan of €10,000 over a 4 year period your repayments would be: 

Each repayment will be (including interest): €108.23 every fortnight
Your loan will be repaid over: 104 fortnights (4 years)
Your total repayment will be: €11254.96
The total interest will be: €1254.96

IMO I cannot see you having any issues as you can clearly prove the ability to repay based on the above.


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## Joanneh (31 Mar 2010)

Woo hoo! Thanks Manto. So relieved. Was sure the three credit card payment defaults would hamper my chances. Thanks so much for your opinion.


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## MANTO (31 Mar 2010)

No bother Joanneh - best of luck


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