Credit Union's

freddy911

Does anyone know if credit unions credit search you when you join or want to take out a loan? Will they refuse you a loan if they know you have recently been bankrupt?

Thanks

TinyToes

no idea on the loan side of things but you can join no problems. i 'think' they base their loan criteria more on your current saving habits and how likely you would be to repay. However i 'believe' loans of large amounts are credit checked. it may vary from union to union aswell.

Flyright

If you are an undischarged bankrupt you have to disclose your status if you are applying for credit of over £500 in any case.

Anondebtadvisor

Credit unions lend money based on affordabilty so they will look at your income and expenditure before they lend to see how much you can repay every month.

You usually have to build up a relationship and have some savings before they lend

mysterio_2

they changed the rules & t&c's in Jan 2012 so some will offer a loan without being a previous saver

A key appeal of credit unions is a willingness to make small loans of £50 to £3,000, which high-street banks won’t do.
In the old days, a credit union kept a strict rule that it would only lend to those who already had savings but this is changing: some will now lend to those who are new to the organisation

from here

http://www.moneysavingexpert.com/banking/credit-unions

freddy911

Flyright wrote: »

If you are an undischarged bankrupt you have to disclose your status if you are applying for credit of over £500 in any case.

Doesn't really answer the question does it? And I'm fully aware of my obligations under the terms of my bankruptcy thanks!

mysterio_2

ok..heres another suggestion then

the link I posted above in previous posts?

find your local credit union & telephone them to ask instead.......

mysterio_2

freddy911 wrote: »

I'm fully aware of my obligations under the terms of my bankruptcy thanks!

good for you....although you'd be suprised some people dont

choccyface2006

Yes we credit check everyone who is going to be accepted for a loan, just be honest about your bankruptcy from the beginning, it does not automatically exclude you. As mentioned before, affordability is key.

New members can apply on the day they join if they wish at our Credit Union though that may vary at others.

Sarah

mysterio_2

Sarah, many thanks for that info useful to know as it's something thats never really come up

choccyface2006

You're welcome