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Scottish Trust Deed Forum
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Topic starter
29/05/2010 1:34 pm
Can anyone advise if I am allowed to make contributions to a credit union and if indeed the credit union would credit check me if I applied.
As we have no money for emergencies as they arise I thought it would be handy if I could get a loan for a new washing machine or something equally vital if the need arises during my trust deed. I still have 2 years to go and do not wish to jeopardise it. We have 2 children and as you can imagine every extra penny is spent. The figures we pay to the trust deed are ?é?ú205 and ?é?ú225 for my husband and I. This has not saved us any money from what we paid to our debt before the trust deed however the trustee has advised the figures must stay as they are. Prior to the trust deed we struggled to pay our debts but did not once miss any payments and we had an excellent credit rating before. Maybe not so good as too easy to get debt thus the mess we got in using credit cards to pay for the extras such as holidays and christmas. We are still paying a car loan and HP on a suite, our mortgate and secured loan are paid each month as well so do we still have some sort of credit rating?
30/05/2010 2:14 pm
Hi CAR038,
I cannot see any problem with making contributions to a credit union; indeed it seems a really good idea to put together some kind of fund for unexpected expenses.
It's hard to see a reason why a credit union would credit-check you for savings but the same might not be true if you were later looking to borrow money.
As credit unions exist for the benefit of their members it might be a good idea to simply ask them how a loan application is viewed and handled.
With regard to your credit rating there is not much doubt that it will be seriously impaired. A good record of paying other arrangements will certainly help to rehabilitate your score in the future though.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
30/05/2010 4:37 pm
Hi TDA, thats good that we can consider joining a credit union now and as you say its handy for emergencies.
I will check with them what their criteria is for a loan just so as we know in advance.
Are we allowed to take on debt whilst in a trust deed, if an emergency arises? Mind you we might not be accepted for any loans for quite a few years yet as only completed the first year of trust deed.
30/05/2010 8:12 pm
Hello CAR038,
There's no restriction on taking out new credit as far as I am aware.
Where you need to be a little careful is that no provision will be made to allow you money for debt repayments when your Trust Deed payment is reviewed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
