How to get a credit union loan?

B

Brian Walsh

Guest
Hi,

I have a 7k (more or less) debt with the Bank of Ireland and am thinking of transferring it to the Credit Union. Does anyone know how feasible that is?
For example, how much savings do you need in the CU to borrow that much, and how long does it have to be in the account?

Thanks in advance
 
all CU differ in their loans policy, you would need to be saving with them a good few months i would have thought and have built up at least 20% of your loan requirements. you will also, generally, need a reason to join that particular credit union, be it geographical or occupational.
 
Thanks for your help, Derek.
I'm actually already a member of a credit union and have been saving with them for about ten years or more.
I think I only have about 10 - 12 per cent of the loan requirement in my CU account - though I make a lot in seasonal work coming up to Christmas so may be able to make up the difference then. I wonder, though, would they allow me to set up the loan if I deposit the final 8 - 10 percent in one go? Thanks again
Brian
 
The rules differ from CU to CU on that. I know of one where once you make a one-off lodgement you need to wait 12 weeks before you can use that as savings for a loan.
 
Because CUs vary a bit, nobody can give you a reliable answer here. The best thing to do is contact you CU and ask them.
 
Anyone who is interested:
I called today; the loan advisor wasn't on duty but I was told the basic requirements. I need shares of at least 25 per cent of the loan required, and I need to have been saving for at least 4 months. (The second one I can manage, the first one - well, I'll have to work on it.)
 
When your savings reach 10 to 15 % make an approach to the credit union - they might consider you given the higher rate charged by the bank and that you have started to make savings. Some CUs wave the 25% requirement.
 
I probably have about that already (haven't actually checked my statement lately). I'll give it about a month, probably. Thanks, Mike
 
is the interest rate going to be cheaper with the CU or something?

why do you want to change?
 
I had always assumed that the Credit Union charged a cheaper rate of interest than the BoI. Obviously i'll have to check it first.
 
In general, CU loans are cheaper. Google for "credit union interest calculator" and you'll get loads of hits.
 
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