Credit Union Loan Help

Worried_Girl

Hi

My husband and I have recently completed a joint Debt Arrangment Scheme (DAS Scotland). My husband has 1 default and I have 4 defaults These are all satisfied.

We would like to arrange a loan of £2500 to install Gas Central Heating. Does anyone know the lending criteria/eligibility of Credit Unions? We have a joint income of around £4000 per month with no debts.

I would appreciate any help.

Gaz83

Most credit unions require you to be a saver for a good while before taking out any loans.

You could just save up. With an income of £4,000 a month it shouldn't take you longer than a couple of months to save £2,500. And you'd need to wait at least as long as that for a loan from a credit union.

Worried_Girl

Thanks Gaz83.

We have other monthly financial commitments until July of this year so can't save until then. Ideally we would like to get the central heating ASAP as we have electric storage heaters which are extortionate to heat! It's also still very cold in Scotland.

Thank you for your advice though. I heard that some Credit Unions allow you to apply for a loan and join at the same time? My main concern is whether they would lend to us?

Many thanks

Gaz83

If you can't save, how would you pay back a loan?

Worried_Girl

Hi Gaz

What I mean is although we have financial commitments until July we could still save £200 or £300 per month but not enough to pay for central heating in the space of a couple of months. This is the reason we were hoping a credit union loan could help us. Ideally we could get it reasonably soon and pay it off in full by Christmas.

Southend1

Why do you need to get the heating done now? You won't need it until September/October so you could wait and save up, which will be cheaper in the long run.

Swampy3k

I would just put on a jumper to keep the cold at bay and save what you can, you will probably find you can save it slightly quicker if your a tad cold

andyfromotley

Southend1 wrote: »

Why do you need to get the heating done now? You won't need it until September/October so you could wait and save up, which will be cheaper in the long run.

+1. Save, save save. You really don't need this loan, so why take it out? (particularly given your previous credit problems? Just save, £300 per month and you'll be sitting toastie before next christmas and still debt free!

Additionally, with an income of £4k and no debts its somewhat surprising that you have no savings. (i note your other 'financial obligations') perhaps a review of your finances so that planned saving and emergency funds are in place which would help with stuff like this.

(i've just read this post and despite my best efforts not to i have ended up sounding like the money police, with a dash of moral high ground thrown in!! I didn't mean too, just trying to emphasise that there are probably other ways. andy)