Credit Union Loan?

[Fender]

Whats the craic with a credit union loan? I understand that you must be a member with your local union for a specific term before you can apply for a loan.

But do you have to have a certain amount of savings in order to get a loan? Iv just graduated and therefore no such savings exist, but id like a loan to clear some debt (overdrafts + credit cards) in order to be able to start saving. I have a full time job, so could proof of monthly income be used in order to secure a loan as appose to savings?

[el_cuervo_fc]

The best thing to do is to start putting savings into your account on a regular basis. This shows a steady stream of money. Then sting them for it after a few months

[Declan]

But do you have to have a certain amount of savings in order to get a loan

Yes - you have to have a track record of regular savings

[LeoMc]

But do you have to have a certain amount of savings in order to get a loan

Yes - you have to have a track record of regular savings

Usually with a first loan / no track record you will need someone to act as Guarantor.

[brokencrossbar1]

Most CUs have their own criteria but a general rule of thumb is that you need to show 13 weeks consistent saving, then you can borrow up to a maximum of 3 times your savings. As Leo says you may need to have a guarantor but it is the safest and esaiest way to get a loan these days and may be the future for banking in Ireland

[Rossfan]

Whats the craic with a credit union loan? I understand that you must be a member with your local union for a specific term before you can apply for a loan.

But do you have to have a certain amount of savings in order to get a loan? Iv just graduated and therefore no such savings exist, but id like a loan to clear some debt (overdrafts + credit cards) in order to be able to start saving. I have a full time job, so could proof of monthly income be used in order to secure a loan as appose to savings?

Credit Unions are member owned Co Ops and can only lend to people who are members.

[Hashtag]

You can loan out up to 5 times the amount of shares you have in your account. Therefore if you think you'd need a loan of £5k you'd need £1K savings in your credit union account.
Obviously you'll need proof of income as well bucko.
What are you qualified as?

[brokencrossbar1]

You can loan out up to 5 times the amount of shares you have in your account. Therefore if you think you'd need a loan of £5k you'd need £1K savings in your credit union account.
Obviously you'll need proof of income as well bucko.
What are you qualified as?

On a first time loan for a new member they would likely only lend 3 times the income, but it also will depend on how much you are borrowing.

[front of the mountain]

Think the maximum 1st loan you can get is £4k and that with having £800 (savings) in the account saved over a peroid of weeks!!
Effectively its a loan of £3,200 as your £800 (savings) is held until mostly paid back!