Bank statement and extravagant expense

[RonnieRockey]

Hi, I hope to apply for Credit Union loan at the end of February. My savings are €3000 and I want a loan of €9000. As you know, the CU now requires three months of bank statements for loan applications. However, I want to book flights for my Summer holidays this month while the sales are on. Would it look bad to have "squandered" €700 on flights when I'm applying for a loan?

On a side note, the reason I'm waiting until the end of Feb to ask for the loan is because I have some online gambling expenses on my bank statement from Nov. I don't normally gamble but I placed a few bets on the football that month. I decided it's probably better if the CU does not see them or they may get the wrong impression of me. Wise decision?

 

[ontour]

The fact that you are looking for a loan does not require you to prove that you lead a frugal existence, what is important is that you bank statements show that you have the ability to service the loan.

If your bank statements show that you have the ability to comfortably make the repayments then there is no problem, book your flights.

There should also not be a problem with small gambling transactions but you never know how this will be viewed by an individual loans officer so it is not a bad idea to wait if you can.

I like credit unions and think that they provide an important service. Having said that, you should shop around for the loan as other lenders may be cheaper especially when you factor in that the €3k will be tied up at a low dividend.

 

[RonnieRockey]

Thanks for the quick response. I understand that every loan case is judged on its own merits but I think I'm going to go ahead and book the flights.