credit union loan
- Thread starter marfsmal
- Start date
depends on the size of the loan. If you are borrowing 40k for the car and are trying to sneak in another 80k in the loan they may get a bit suspicious. If you are using 4k for the car and 8k for other things it probably won't raise the same alarm bells.
Check the terms and conditions of the loan to see if you are breaching any of them by using the funds for other things. Check out the FInancial Best Buy section of AAM as there may be the same or better rates with no constraints on what you use the funds for.
Check the terms and conditions of the loan to see if you are breaching any of them by using the funds for other things. Check out the FInancial Best Buy section of AAM as there may be the same or better rates with no constraints on what you use the funds for.
To answer your original question: yes, you will have to prove that you are using the money to buy a car. I had to give them a copy of my booking form before they would approve a car loan. If you want to borrow extra, it will have to be a seperate loan at the standard rate.
This is not a standard rule across all credit unions. It is important to note that credit unions are locally governed so the rules, practices and products differ greatly.
If someone is heading off to the UK, like a lot of people are, to buy a car there will be no booking form. Same is true for any private sale.
The OP should go in to the CU and tell them that he wants a loan for €x and that he will be buying a car, what is the best rate that they can do?
LennyBriscoe
Registered User
- Messages
- 108
Actually when I got a loan from the CU for a car they addressed the loan cheque to the car dealership.
But there should at least be a receipt, and I'm sure the CU will look for that. In my experience they did look for proof that the money was being spent on a car, because their rates differ depending on the purpose of the loan. I too had my cheque made out to the dealership, but that was my own choice.