Personal Loan from Credit Union

[AW]

Hello, I am wondering what my chances would be at getting a personal loan through my local Credit Union for around $10,000 - $14,000? 

I have been banking with this same credit union for about 8 years now. I have a savings account with them with $5,000 in the account. A checking account with them that has $500 in the account. Then a business savings account (I have a side business I do on the weekends for fun) which has $650 in the account. 

My salary from my employer is $30,000 a year. (Since I just started my side business a few months ago I am not including any income from that.)

My main concern for appliying for this personal loan is my limited credit history, and or Salary of $30,000.

I have a credit score of somewhere around 750.

I did have an auto loan with my Credit Union which was for $10,000 for 48 months. It was fully paid about 1 1/2 years ago. Also, about 4 months ago I applied for a credit card with my Credit Union and they easily gave me a $5,000 limit on the card. I always pay the full balance each month before the due date. I have never missed a payment on anything ever.

My current DTI is 12% and if approved for this personal loan would be around 26%.

I am hoping to use this personal loan to do some house projects on a family farm house my dad is giving me for free.

[Creditwiser]

Based on your profile I think your chances of approval are very good. They may have some income questions for you but you should be fine.

Welcome to the Forum !

[SouthJamaica]

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@AW wrote:

Hello, I am wondering what my chances would be at getting a personal loan through my local Credit Union for around $10,000 - $14,000? 

I have been banking with this same credit union for about 8 years now. I have a savings account with them with $5,000 in the account. A checking account with them that has $500 in the account. Then a business savings account (I have a side business I do on the weekends for fun) which has $650 in the account. 

My salary from my employer is $30,000 a year. (Since I just started my side business a few months ago I am not including any income from that.)

My main concern for appliying for this personal loan is my limited credit history, and or Salary of $30,000.

I have a credit score of somewhere around 750.

I did have an auto loan with my Credit Union which was for $10,000 for 48 months. It was fully paid about 1 1/2 years ago. Also, about 4 months ago I applied for a credit card with my Credit Union and they easily gave me a $5,000 limit on the card. I always pay the full balance each month before the due date. I have never missed a payment on anything ever.

My current DTI is 12% and if approved for this personal loan would be around 26%.

I am hoping to use this personal loan to do some house projects on a family farm house my dad is giving me for free.

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We can't really know until you apply.

It can't hurt that you had the auto loan and paid it off; but that's a secured loan. Personal loans are harder to come by.

[MeredithLepore]

It sounds like you've managed your debt well in the past and have a solid credit score to show for it—good work. Applying with your credit union is likely your best chance of approval, however, it wouldn't hurt to get preapproved with other institutions online first to get an idea of what kind of terms you're eligible for. With your score, you can likely get a competitive interest rate, so the preapproval process could help you weigh your options in terms of loan providers.

[AW]

I ended up applying for the personal loan for $12,500 through my CU and was quoted an APR of 9.5% as my credit score pulled at 739. It was then sent over to underwriting and they denied me due to limited credit history. They did not even counter offer me anything. I am kind of down, as I paid off a 48 month auto loan and never missed a payment with them and have and have a unsecured credit card with them and never missed a pamyent . These are the only two credit  items I have ever had. -- I see on Credit Karma I have outstanding odds of approval with Upstart for personal loan up to $12,000. Does anyone think I would have a chance of getting approved with Upstart? Again, I pay my credit card in full each month and my  DTI is currently 12% .

[SouthJamaica]

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@AW wrote:

I ended up applying for the personal loan for $12,500 through my CU and was quoted an APR of 9.5% as my credit score pulled at 739. It was then sent over to underwriting and they denied me due to limited credit history. They did not even counter offer me anything. I am kind of down, as I paid off a 48 month auto loan and never missed a payment with them and have and have a unsecured credit card with them and never missed a pamyent . These are the only two credit  items I have ever had. -- I see on Credit Karma I have outstanding odds of approval with Upstart for personal loan up to $12,000. Does anyone think I would have a chance of getting approved with Upstart? Again, I pay my credit card in full each month and my  DTI is currently 12% .

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Well NerdWallet seems to think they could be a good option:

https://www.nerdwallet.com/reviews/loans/personal-loans/upstart-personal-loans

But my reservations would be:

1. What kind of interest rate?

2. Does it get scored by FICO as a CFA (consumer finance account)? If so don't do it.

[ForwardLooking]

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@AW wrote:

I ended up applying for the personal loan for $12,500 through my CU and was quoted an APR of 9.5% as my credit score pulled at 739. It was then sent over to underwriting and they denied me due to limited credit history. They did not even counter offer me anything. I am kind of down, as I paid off a 48 month auto loan and never missed a payment with them and have and have a unsecured credit card with them and never missed a pamyent . These are the only two credit  items I have ever had. -- I see on Credit Karma I have outstanding odds of approval with Upstart for personal loan up to $12,000. Does anyone think I would have a chance of getting approved with Upstart? Again, I pay my credit card in full each month and my  DTI is currently 12% .

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Sorry you were not able to get a loan from your CU.  They probably realize that they are your only lender and don't want more risk.  Lending rules are getting tighter across the board, so don't take it personally and think your CU doesn't value your business.

I had an Upstart loan that I had to get during the tail end of the Covid period.  Interest was high (but fair given my situation), but they gave me a loan when others would not.  The high interest rate made me so angry (not angry at Upstart particularly) that I saw to it that the loan was paid for and done in about 8 months.  I paid about half in cash and the other half I was able to move to a 0% balance transfer card off I got from Discover.

My experiance with Upstart was good despite the high interest rate.  I was able to manage everything online and make payments anytime I had excess cash on hand.  Also, since I paid off the loan early, I recieved about half of my origination fees back from them, which made things a little less painful over the long run.  The one thing I disliked about them was that they did not allow future payments, meaning if you paid extra, you were still liable for the full payment the following month, but it did get applied properly and brought down the fees and principal outstanding.

Personally, I would challenge you a little - you need to ask if you really need the loan.  What other options do have to achieve your goal?  And are you willing to pay interest and origination fees?