Credit Union & Loans

bamgbost

Anyone with “Bad” Credit, ever applied for a loan with aCredit union?

How did it go? whatstuff do I require from you?
I assume they more likely to approve you than the bank. - But @ What Interest rate.

I have bad credit, and considering approaching my localCredit Union.
I just want to be prepared for whatever curveballs they mightthrow at me

Any advise would be much appreciated.

[Deleted User]

Check with your local Credit Union. They will have their own rules, though most will want you to already be saving with them.

[Deleted User]

My local union claims: "Our Short Term loan rate is 42.6% APR."

They also say "Highly competitive interest rates. Repayments are tailored to individual circumstances. The interest charged is 1% - 2% per month on the reducing balance (unlike most lenders and equivalent to 12.68% - 26.8% APR). Because you only pay interest on the declining balance, you pay a maximum total interest of 13.4% for the year.
We're the best for small loans. Most High Street banks don’t lend less than £2,500 and usually for a minimum of 12 months. We can help.
We do not charge an arrangement fee.
We do not make you pay an early repayment penalty If you repay early, then you save interest.
Loan decisions are made quickly.
You can pay flexibly - weekly, fortnightly or monthly
Save as you repay your loan. All our loans have a compulsory savings element that provide security for future lending."

All really good until you see the likes of their inside recruiting policy and that was enough to turn me off like most things.
One day maybe.

bamgbost

@zx Will defo look into more details of my local one!

@keepcalm - What do u mean their recruiting policy?

Tixy

Generally credit unions are more interested in your ability to repay than you past credit history.

Typically the initial loans you can get from them are relatively small, and they usually insist on you making regular savings as well.
This is to minimise their risks.

The interest rates they can charge are capped. They will likely be more expensive than a mainstream lenders representative APRs, but cheaper than subprime/payday loan type credit.

There is a link on this page http://www.abcul.org/home to find credit unions local to you / or that you may be eligible to join.

cherrybun

Great idea in theory and low interest rates and they are quite flexible with repayments. However I absolute dread asking for a loan off them I have been a member about 10 years with the Liverpool Kensington credit union. I put my loan in on 17th June and have still had no phone call from them. I have been in limbo for 4 weeks not knowing if my family of five are to be going on a booked holiday including my son who has special needs and lives by a routine needing to know in advance what is happening in his life. Every loan I have ever asked for from the credit union has came with problems, even when I have asked to withdraw my own saving they act as it is their own money. If you want a loan from the credit union be prepared for the stress that comes with it.

iolanthe07

Sorry, Cherrybun, but I don't think it is a great idea to book a holiday without knowing how you're going to pay for it. Perhaps it would be better to book the holiday once you've received the loan - although tbh borrowing money for a holiday is really not a great idea either, imho.

DCFC79

Or better yet cherrybun dont go on holiday.

bamgbost

Hi. Im also looking to apply for a loan too!
I believe u sometimes need to be a member for a bit. and save a bit.


THen they give u a loan, and secureit against your savings. - @ least that's from what I have read.


As a previous poster has said...its not too difficult and not dependent on your credit history solely.

angelinapari

hi friends
I have bad credit, and considering approaching my local Credit Union.
I just want to be prepared for whatever curve balls they might throw at me

Anthorn

bamgbost wrote: »

Anyone with “Bad” Credit, ever applied for a loan with aCredit union?

How did it go? whatstuff do I require from you?
I assume they more likely to approve you than the bank. - But @ What Interest rate.

I have bad credit, and considering approaching my localCredit Union.
I just want to be prepared for whatever curveballs they mightthrow at me

Any advise would be much appreciated.

Looking at the credit union I support, they say they search Experian so they can make a decision. Beyond that, the interest rate is calculated according to how long you've been a member and how long you've been paying in. Interest is a max of 3% per month and a minimum of 1% per month.


The way credit unions get around a bad credit history assuming an ability to pay is to require that savings covering the loan are left in the union. To guarantee that security they may require that savings are moved to a Christmas pot where the savings cannot be withdrawn until late November. That old joke about only being able to get a loan if you can prove you don't really need it applies here. It's a lot like borrowing your own money and paying them for it. But beggars can't be choosers.
http://www.rainbowsaver.co.uk