Loan moan

youcrazyjesus!

When I was in college almost 3 years ago I missed 2 repayments on my loan when I was on travelling. I rectified it on both occassions within 10 days and I payed off the loan ahead of schedule.

These missed repayments happened 3 years ago. I have since graduated and saved approx 400 per week since October, back then I never had more than 1000 in my a/c at any time. So I changed my account status from student to graduate and applied for a loan of roughly the same amount as I had saved since October. I was refused because of these 2 missed payments. My credit history has nothing else bad on it so I'm a bit disappointed. I would have thought somebody with a modicum of common sense would have scanned over my banking history and noticed that I have recently graduated, that my circumstances are completely different to those of 3 years ago, that I'm a good saver and I'm earning good money and given me the loan. Missed payments shouldn't happen but they sometimes do, it seems a bit unfair to hold that over someone forever, particularly a student who is now a graduate with a good job.

I can go to a different bank but my own bank's checking up on me with the ICB is now on my ICB file now and they will probably put 2 + 2 together, that my own bank refused me a loan.

When you consider all that goes on in the banking world, denying me a loan of a few thousand euro seems extremely petty.

ImDave

Thats scary stuff. I was under the impression that student loans were exempt from appearing on a credit report. I would have though that most banks would consider the circumstances you outlined above when reviewing a loan application.

Jet Black

For loans they only usually go back 3 years. They best thing I would say to do is go to the bank and ask can it be fixed as you rectified it straight away. Explain it like you did here and hopefully understand.

dotsman

heymcflyx wrote: »

For loans they only usually go back 3 years. They best thing I would say to do is go to the bank and ask can it be fixed as you rectified it straight away. Explain it like you did here and hopefully understand.

Not sure if they'll be able to do that for you. They only ever correct something if it was wrong in the first place. All the ICB records is that 2 payments were missed and the loan was fully repaid, which is exactly what happened. Don't mean to sound like I'm putting you down OP, but this is the reason why people (and there are a lot of them!) need to take their finances seriously, regardless of whether they are a student or not.

As for why you were refused, I don't know how much you have been following the financial news over the past year, but what's going on in the world right now is a pretty f***in' huge credit crisis. The banks only have very limited funds to lend out and will therefore only lend to the most secure applications. Therefore, they may easily have a (temporary) policy of not approving any loans where the applicant has any blemishes on their credit history. Of course they may have refused you for an entirely different reason - have you enquired as to why your application was rejected? Also, have you queried the ICB (only costs a few Euro) to make sure that your record is correct?

Toots

EI-DAV wrote: »

Thats scary stuff. I was under the impression that student loans were exempt from appearing on a credit report. I would have though that most banks would consider the circumstances you outlined above when reviewing a loan application.

God no! Student loans will go up on ICB same as any other. A lot of students have gotten themselves into a mess financially by not paying their student loans on time only to have it bite them in the ass a few years later when they're graduated and trying to get a mortgage.

Banks will take circumsatnces into consideration, but the loan could have automatically declined due to poor credit rating. OP should ask the bank can they appeal the loan decision. If the payments were made so soon and the loan was paid off ahead of schedule, I don't think it would be that bad though! Go to www.icb.ie and request a copy of your credit report just to make sure everything's in order.

youcrazyjesus!

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youcrazyjesus!

dotsman wrote: »

As for why you were refused, I don't know how much you have been following the financial news over the past year, but what's going on in the world right now is a pretty f***in' huge credit crisis. The banks only have very limited funds to lend out and will therefore only lend to the most secure applications. Therefore, they may easily have a (temporary) policy of not approving any loans where the applicant has any blemishes on their credit history. Of course they may have refused you for an entirely different reason - have you enquired as to why your application was rejected? Also, have you queried the ICB (only costs a few Euro) to make sure that your record is correct?

Yes I was refused because of the missed repayments, I know because they told me. I've also checked up my credit report. The missed repayments aren't even on it. It's just that the bank know about it because it was their loan.

Toots

If that's the case, then I'd ask them to appeal the decision to the underwriters. If that fails, try your luck with another bank and see what they say.

ImDave

youcrazyjesus! wrote: »

Yes I was refused because of the missed repayments, I know because they told me. I've also checked up my credit report. The missed repayments aren't even on it. It's just that the bank know about it because it was their loan.

If the missed repayments arent reflected in your credit report then going to another institution should solve the problem?

youcrazyjesus!

As I said above, I can go to a different bank but my own bank's checking up on me with the ICB is now on my ICB file now (I checked it after I got the refusal) and they will probably put 2 + 2 together, that my own bank refused me a loan.

dobsdave

youcrazyjesus! wrote: »

As I said above, I can go to a different bank but my own bank's checking up on me with the ICB is now on my ICB file now (I checked it after I got the refusal) and they will probably put 2 + 2 together, that my own bank refused me a loan.

Banks checking your credit rating/history is normal.
If the missed payments aren't on the report, you should'nt have a problem getting a loan elsewhere.
If questioned about the inquiry, just reply that you are looking for the best deal.

eirmail

just another innocent victim of the global credit crunch , I'm afraid