Credit Union Loans

Johnny_Barnes10

Just opened an account with them and will be saving between £100-300 a month. What's the max loan they offer? I'll be after a car in Jan, and while I'm happy to drive a £500 runabout I'd like to spend around £2-3k on a newer more realible (in theory) car. Will have around £1k myself but will keep £200 aside for repairs etc so would look for a loan over 2 years paying £100/month. Not sure on interest rates with them.

I had a CCJ 4 years back with det fully paid. Got a Capital One and Vanquish CC with £300 on them which I'll pay off end of the month.

Didn't really want to ask them myself as would feel a bit cheeky asking them straight off!

Ideally I'd have a car for £500 that wouldn't breakdown so I could save myself, but a newer car would be ether for my work prospects too if it was realibe as I'm looking to become an external rep (no chance of company car).

Thanks for any advice given!

Apples2

different CU's have different criteria, it is normally a multiple of your savings, maybe 3x the amount you have saved.

You normally get offered a lower amount for the first loan, then more later, when you have saved more.

Well done for not demanding a ten grand car. It's what most expect on here.

mummyplus3

My first loan from Local CU was for £200 sort of an "emergancy first timer loan" I pay back £5 a week on the loan and £5 into savings. I'd open it as soon as possible and start building up savings in there at mine I think you can borrow upto double what you have in your account or get an Emergancy loan.

Stuart_W

My credit union now, sadly, charges the maximum legally allowed level of interest for a CU (2% per month).

This would means a loan of £1,842 would be available for repayments of £100 per month for 24 months, total interest repayable is £557.

Your credit union may be cheaper. MSE's loan calculator may help with the maths.

My credit union will usually offer 3x savings balance loan after 3 months/13weeks of saving regularly providing you can complete an income and expenditure form (with evidence).

After a year of membership, this usually increases to 4x savings and after two years, of 5x savings balance, if everything is in order / up to date.

They also prefer, if possible, that you continue to add to your savings (even if only £1 a month) whilst you repay your loan.

So, with my CU then, saving £210 a month in Nov,Dec and Jan would allow a loan as described above.

Johnny_Barnes10

Ah right cheers, might just put the £600 I got no into the account and keep building up. If it wasn't for me going to be doing motorway miles I wouldn't bother. I know I can definately do £100/month so will not be going over that limit, will choose a car to fit whatever I can get (got insurance money set aside).