Credit union loans? anyone know?

rover25

Just wondering if you have to have savings to get a loan from the credit union? I had around £3000 in it last year saved over a period of time, but used it for my wedding. Was looking to get a loan for about £2,000 but don't know if this is possible if I no longer have the savings with them.
Is it worth making an appointment to for or would the cashier just be able to tell me if they do this at all?
Anyone got any experience of using them? Thanks

mumoffour77

You need to have shares to borrow!
Have you anything in your CU account now?

CL

In my Credit Union you need to have 30% of the amount you want to borrow in savings and these savings are frozen. As you pay off some of the loan, some of the savings are released, so 30% of the loan balance is always frozen.

Also I think you have to show evidence of regular savings, so you can show that you can afford the repayments. If you haven't had a loan before, they usually ask for a guarantor, e.g. a family member who has savings in the Credit Union.

sheerdelight

You can always ask. Be mindful however that loans are not always as cheap as people think as they do not come under Consumer Credit Act Regs unless things have changed in very recent times.CU do not have to include all charges ets as banks do etc.If worked out as true APR little difference to the banks!

CL

I agree about the interest rate. When interest rates were higher, Credit Union used to be one of the cheapest personal loans you could get, but now the rates are lower, the Credit Union don't seem to have moved their rate and aren't so cheap.

hamps

About Credit Union Loans - each credit union stands on its own feet and has its own rules about lending. Most credit unions are now giving interest rate rebates on their loans. My credit union gave me 20 per cent rebate on my loan interest last year. There is also no set up fees for a loan and you get free insurance on the loan. Credit unions only lend their own money so you have to save to borrow. Credit Unions are still a much better deal than the banks.