# Credit Union Question



## InDeep (28 Sep 2006)

Hello just a quick question relating from my previous thread.

My understanding from Credit Unions is that you have to be saving for 12 weeks and then they will lend you twice your shares(to max 3k).
You then need to save for another 6 months and then they will lend you 3 times your savings.


Example.


I save fro 12 weeks an amount of 1000. I borrow twice my shares (2k). I then increase my savings to around 800/900 per month and by October next year I have 10k in savings. I then apply for 30k.

I intend to consolidate two personal loans with this credit union loan and will have statments from both loan accounts to prove good payment  history on both accounts along with bank statements which literally show my wages,loan payments,savings, and ATM transactions nothing else.

I am permanently full time emplyoed in Finance.

Are the Credit Union fairly easy to borrow from once you have sufficient shares with them to qualify?

Cheers everyone


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## ClubMan (28 Sep 2006)

*Re: Credit Union Question?*

Are you talking about_ Irish CUs_? If so how are you going to join one when you don't meet the "common bond" criterion by, for example, living in the vicinity of one?


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## InDeep (28 Sep 2006)

*Re: Credit Union Question?*

Mate I live in Swords????


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## ontour (28 Sep 2006)

*Re: Credit Union Question?*

the rules you specify above all depend on the specific credit union...some will be a lot more flexible. It usually depends a lot more on the ratio of loans to shares that they currently have and the size of the credit union rather than your personal financial situation.

join as soon as possible, save regularly and bring as much information as possible when you apply for the loans.


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## InDeep (28 Sep 2006)

*Re: Credit Union Question?*

ontour

Thank you for that.


I rang Swords Credit Union and they said once you have saved for 3 months you can get first loan and then 5/6 months after you avail of 3 times savings.

My only thinking behind it though is surely there must be more than raito of shares to get approval????

Once again thanks.


I am starting saving at least 100 euro per week from first week in January and hope to avail of first loan from them in March and then finally my desired amount of 30k in September.

I will be lodging a few lump sum payments along the way but will keep 100 per week constant until March when I will up it to 200 per week


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## Marie (28 Sep 2006)

You need to remember that if you do take out a CU loan of 30K you will then be repaying the interest on that amount + the 100/200 you intend to pay into shares.  _ClubMan _mentioned the 'common bond' aspect of the CU movement.  Do you qualify (it can be geographical, occupational etc. etc.)  The ethos of the CU is to encourage prudence and in my day (I was a founder-member of Inchicore CU which was for C.I.E. employees and their families) decisions on loans were based on the panel's appraisal of a number of factors including the maturity and responsibility of the applicant, their CU/general credit history and the _purpose_ of the loan.


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## ClubMan (28 Sep 2006)

*Re: Credit Union Question?*



InDeep said:


> Mate I live in Swords????


Sorry - I misread this:


> I am permanently full time emplyoed in Finance.


 As


> I am permanently full time emplyoed in France.


 My mistake.

As for borrowing from the _CU _(a) maintaining savings while borrowing (as the CU generally insists upon) is not generally a good idea and (b) judging by your other thread you have more than enough debt already so should think carefully of incurring more or even about replacing one form with another especially when the replacement debt requires that you maintain savings which could otherwise be used to reduce your debt.


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## lff12 (29 Sep 2006)

*Re: Credit Union Question?*



InDeep said:


> Mate I live in Swords????


 
If Swords CU could give my Dad a loan, they'll give anybody a loan. Then again he has been a member for about 25 years and it was through MABS.  He had to go to the credit committee meeting to explain his circumstances.  In fairness the alternative was that he lose his business, his house and everything.  And he drives a 1986 car.  He could just about manage the repayments but everybody at home in Swords knows Dad so they had a bit of sympathy for him I think.


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## SarahMc (29 Sep 2006)

I think all applicants have to go to an interview with the Credit Committee for their first loan, at least in some credit unions.


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## bond-007 (2 Oct 2006)

Never heard of this requirement before, must be a very new practice.


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