Credit Union's do they do credit searches

iwantasmallholding

Hi

I have just discovered that I can sign up to a credit union, which I have done, I am lucky to be a police officer so can join a huge credit union, who offer loans and savings etc etc.

My question is if I apply for a loan will they do credit searches or just go by the income and expenditure sheet attached to the application. I know they can take the payments at source from my pay which will be nice. I just dont want to apply for a loan, get another credit search only to be turned down. I know i can afford that payments as I have been paying 15k worth or credit cards at an average interest rate of 26% with out so much as a late payment for 6+months so a credit union loan would be half the interest rate. I just dont want another credit search.

Does anyone know? will they do a credit search?

Thanks

Rafter

I want a small holding too!

Credit unions are generally for smaller loans - you won't get £25k from them. They might search you, but generally the amounts they lend mean that they are less likely to that banks. They are probably more looking for identity checks or whether there is a fraud marker on your file. 6 months without late payments is good news too. If there are CCJs in the past that is bad news.

Like any lender, they are bound to do an affordability check and £25k of debt on a policemans wage is a lot of debt - unless you are a commissioner! That might limit your ability to get a loan of any size too.

But every little will help to eat into your credit card debt and allow you to 'snowball' - pay off your most expensive debt and use the repayments you save to throw even more at the next most expensive and so on.

Good luck

R.

iwanttoberich

iwantasmallholding wrote: »

Hi

I have just discovered that I can sign up to a credit union, which I have done, I am lucky to be a police officer so can join a huge credit union, who offer loans and savings etc etc.

My question is if I apply for a loan will they do credit searches or just go by the income and expenditure sheet attached to the application. I know they can take the payments at source from my pay which will be nice. I just dont want to apply for a loan, get another credit search only to be turned down. I know i can afford that payments as I have been paying 15k worth or credit cards at an average interest rate of 26% with out so much as a late payment for 6+months so a credit union loan would be half the interest rate. I just dont want another credit search.

Does anyone know? will they do a credit search?

Thanks

Hi

I have been a member of my credit union for about 3 years. They don't do credit searches. You can borrow 5 or 10 times your savings, depending on the credit union. It's as simple as that, plus your ability to pay it back.

I recommend credit unions to everyone. It's the easiest way to get loans, and the interest is very very low.

Hope this helps.

iwantasmallholding

Rafter wrote: »

I want a small holding too!

Credit unions are generally for smaller loans - you won't get £25k from them. They might search you, but generally the amounts they lend mean that they are less likely to that banks. They are probably more looking for identity checks or whether there is a fraud marker on your file. 6 months without late payments is good news too. If there are CCJs in the past that is bad news.

Like any lender, they are bound to do an affordability check and £25k of debt on a policemans wage is a lot of debt - unless you are a commissioner! That might limit your ability to get a loan of any size too.

But every little will help to eat into your credit card debt and allow you to 'snowball' - pay off your most expensive debt and use the repayments you save to throw even more at the next most expensive and so on.

Good luck

R.

No not a commisioner, shame or else I could clear everything in weeks not years. The credit union for the police state they will lend unsecured upto 25k, and secured up to 90k. I would settle for 5k and then at least I will be able to transfer a balence onto 0% in a few months when the credit card company gets itchy feet and wants my debt again. I have no CCJ's etc, my main issue is tooo many credit agreements. so I was hoping 15k would consolidate 3 credit cards, pay off one overdraft so I could cancel a current account, so I would have three less agreements. Hoping this would boost me back into the market, as my mobile phone gets cancelled next months so thats four less credit agreements. Car insurance the month after that so that will be 5 less!!.

I just hope they dont say no. I am lucky enough to have a partner that earns good money too, and my morgage has dropped to 399 a month now from 1399 a month 10 months ago.

Keep your fingers crossed for the credit union to say YES, and then I can start some interest free deals soon!!

Rafter

Good luck,

Don't get lulled into a false sense of security by getting 0% deals or by your current low mortgage payment.

Don't want to sound negative, but the only way is up for interest rates and you need to try and get as much of this unsecured debt paid off before rates rise, and even think about fixing your interest rate to give you payment security longer term.

Good luck

R.

iwantasmallholding

Rafter wrote: »

Good luck,

Don't get lulled into a false sense of security by getting 0% deals or by your current low mortgage payment.

Don't want to sound negative, but the only way is up for interest rates and you need to try and get as much of this unsecured debt paid off before rates rise, and even think about fixing your interest rate to give you payment security longer term.

Good luck

R.

Completely agree, I am paying off like crazy, dont want to fix at the moment as the morgages open to me will be sucky!!, Good thing about the credit union loan is I can over pay and interest gets calulated daily. I know I am not gonna be debt free before the rates go up, but I am hoping that I will have repaired my credit rating enough to be able to get a good main stream morgage, and not a "special one". On paper I am doing ok, 180k on house morgage and house was just valued at 299k. so I have the equity side to get a good rate just need to boost my credit file as well, then I will fix fix fix, and over pay depending on how much I have cleared.

iwantasmallholding

iwanttoberich wrote: »

Hi

I have been a member of my credit union for about 3 years. They don't do credit searches. You can borrow 5 or 10 times your savings, depending on the credit union. It's as simple as that, plus your ability to pay it back.

I recommend credit unions to everyone. It's the easiest way to get loans, and the interest is very very low.

Hope this helps.

Thats sounds great, I hope that the Credit Union will pull it out of the bag for me and set me on my way to credit file recover and main stream rates and offers. I dont have saving with the credit union, but I am now a regular saver now 10 pounds a month, 5 pounds more than the minimum. My credit union also deduct there money at source, so i guess that offers them some security. Fingers crossed, I will do the affordability sheets they have sent out, and will be honest and show that by getting a loan i will be 75 pounds per month better off, (or will be paying 75 pounds per month more off the debt and not interest)

weebegbie

iwanttoberich wrote: »

Hi

I have been a member of my credit union for about 3 years. They don't do credit searches. You can borrow 5 or 10 times your savings, depending on the credit union. It's as simple as that, plus your ability to pay it back.

I recommend credit unions to everyone. It's the easiest way to get loans, and the interest is very very low.

Hope this helps.

Hi, Just to let you know that some of the larger credit unions (such as the police) will do some sort of credit check... and this does still have an effect on your credit rating. Although most of the time credit unions don't use credit scores they do a check to see how much debt you have, which means doing some kind of loan check in your name through experian, which is not good for your credit rating over all esp if you are not successful!

Also the savings to loan ratio varies greatly depending on what credit union it is, some of the bigger ones you can apply for as much as you need.

Cheers P