Credit Union Loan Approval Process

[Repairman]

Hello all, I'm new to the loan application process and plan on applying for a $30,000 loan from my credit union to use toward paying off higher interest credit card debt. I'm assuming a credit union would do a HP for the loan application, correct? Also, what if I apply for say $30,000 and they only approve something like $5000? A very low loan amount approval won't help me much, so I probably would not want it, but if a scenario like that did happen, would I have wasted a hard pull to only get approved for that low amount which I won't even use?

[Anonymous]

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@Repairman wrote:

Hello all, I'm new to the loan application process and plan on applying for a $30,000 loan from my credit union to use toward paying off higher interest credit card debt. I'm assuming a credit union would do a HP for the loan application, correct? Also, what if I apply for say $30,000 and they only approve something like $5000? A very low loan amount approval won't help me much, so I probably would not want it, but if a scenario like that did happen, would I have wasted a hard pull to only get approved for that low amount which I won't even use?

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Yes and Yes.

[CreditInspired]

Definitely a HP. 

You didn’t ask but I suggest going into your CU and talk to branch manager about what you want to do. That’s what I did @ NFCU and realized the CLOC worked better in my situation. Also, if you told us your DPs, we may be able to  give you an idea if a $30K loan is doable. Also, the max unsecured loan may only be $25K. 

Just my 2cents 

[Repairman]

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@CreditInspired wrote:

Definitely a HP. 

You didn’t ask but I suggest going into your CU and talk to branch manager about what you want to do. That’s what I did @ NFCU and realized the CLOC worked better in my situation. Also, if you told us your DPs, we may be able to  give you an idea if a $30K loan is doable. Also, the max unsecured loan may only be $25K. 

Just my 2cents 

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Thanks for the advice. I didn't even think about going in person. Maybe I will do just that. Do credit unions generally consider the length of membership and positive activity (funds going into) your CU account(s) when making their decisions for loans?

[Revelate]

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@Repairman wrote:

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@CreditInspired wrote:

Definitely a HP. 

You didn’t ask but I suggest going into your CU and talk to branch manager about what you want to do. That’s what I did @ NFCU and realized the CLOC worked better in my situation. Also, if you told us your DPs, we may be able to  give you an idea if a $30K loan is doable. Also, the max unsecured loan may only be $25K. 

Just my 2cents 

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Thanks for the advice. I didn't even think about going in person. Maybe I will do just that. Do credit unions generally consider the length of membership and positive activity (funds going into) your CU account(s) when making their decisions for loans?

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I think generally every FI does these days but CU's almost assuredly.