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motor loan application is refused

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  • 31-07-2008 7:45pm
    #1
    keiran
    Closed Accounts Posts: 25 ✭


    Hi

    I earn around 2500 euro per month after tax,and I applied for a loan of 4000 euro but got refused.Is it normal?!cannot believe it!
    I have a decent job in a big international company.The disadvantage might be my spouse who stays at home to mind our only child.


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    #2
    selfbuildkk
    Registered Users Posts: 226 ✭✭selfbuildkk


    It unfortunately has become normal,a friend of mine earns 60k+ as an accountant.keeps her account in excellent order, recently refused a 3k loan. State of the nation im afraid.not just you


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    #3
    keiran
    Closed Accounts Posts: 25 ✭keiran


    selfbuildkk wrote: »
    It unfortunately has become normal,a friend of mine earns 60k+ as an accountant.keeps her account in excellent order, recently refused a 3k loan. State of the nation im afraid.not just you

    :eek: oh I'd better stop trying again then.


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    #4
    listermint
    Registered Users Posts: 33,931 ✭✭✭✭listermint


    Its not the state of the nation, thats rubbish. Yes they are not giving out loans willy nilly anymore. However what they are doing is taking deeper consideration of your other personal debt ie mortages, credit cards, previous payment and credit history. So dont believe second hand information such as this. Shop around it is not hard to get a 3k loan. But it does depend on circumstance.


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    #5
    MarkN
    Registered Users Posts: 4,192 ✭✭✭MarkN


    selfbuildkk wrote: »
    It unfortunately has become normal,a friend of mine earns 60k+ as an accountant.keeps her account in excellent order, recently refused a 3k loan. State of the nation im afraid.not just you

    I'm sorry but this isn't true.

    If your friend has a big mortgage, a car loan, a personal loan and a credit card with some money owed - fine, but someone on 60k doesn't get refused 3k.


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    #6
    fletch
    Registered Users Posts: 7,398 ✭✭✭fletch


    How long are you working with your current employer?


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    #7
    keiran
    Closed Accounts Posts: 25 ✭keiran


    listermint wrote: »
    Its not the state of the nation, thats rubbish. Yes they are not giving out loans willy nilly anymore. However what they are doing is taking deeper consideration of your other personal debt ie mortages, credit cards, previous payment and credit history. So dont believe second hand information such as this. Shop around it is not hard to get a 3k loan. But it does depend on circumstance.

    Thanks
    I've filled application forms of several other finance providers.fingure crossed.
    I have very good credit history and even a small amount of savings.I was so frustrated as i thought i'd drive the car home this afternoon...


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    #8
    Nonoperational
    Registered Users Posts: 7,401 ✭✭✭Nonoperational


    Not normal at all. Should get anything up to 10k no bother on 60k a year.


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    #9
    keiran
    Closed Accounts Posts: 25 ✭keiran


    fletch wrote: »
    How long are you working with your current employer?

    hi
    2.5 yrs so far.


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    #10
    steph1
    Registered Users Posts: 564 ✭✭✭steph1


    Are you a member of a Credit Union? You could try there. However you have to be a member for a number of months and have saved regularly during that time to be considered for a loan. Also a first loan is usually a small one.


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    #11
    JHMEG
    Closed Accounts Posts: 7,686 ✭✭✭JHMEG


    Someone will give you a loan. The crowd that refused are probably nearly out of money themselves.


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    #12
    walshy123
    Registered Users Posts: 463 ✭✭walshy123


    i earn less than you and got a 17k loan last month with AIB. direct banking refused at first but i rang my branch and got it approved within an hour


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    #13
    DonJose
    Registered Users Posts: 3,470 ✭✭✭DonJose


    selfbuildkk wrote: »
    It unfortunately has become normal,a friend of mine earns 60k+ as an accountant.keeps her account in excellent order, recently refused a 3k loan. State of the nation im afraid.not just you

    Thats not true, I was approved a car loan of €45k over 3 years in January, I am also paying a €20k personal loan. I don't know what your outgoings are but you should have been able to borrow at least €4k. Have you any bad credit ratings?


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    #14
    Táck
    Closed Accounts Posts: 1,744 ✭✭✭Táck


    selfbuildkk wrote: »
    It unfortunately has become normal,a friend of mine earns 60k+ as an accountant.keeps her account in excellent order, recently refused a 3k loan. State of the nation im afraid.not just you


    the country is in a bad state yeah, but i have a funny feeling your friends accounts are in a worse state if she cant get a loan of 3k with a 60k+ salary


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    #15
    snowman707
    Closed Accounts Posts: 2,279 ✭✭✭snowman707


    Táck wrote: »
    the country is in a bad state yeah, but i have a funny feeling your friends accounts are in a worse state if she cant get a loan of 3k with a 60k+ salary

    +1


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    #16
    Leprechaun77
    Registered Users Posts: 498 ✭✭Leprechaun77


    Loans are assessed on ability to pay back, which will include looking at your incomings/outgoings and checking the 'bad credit' register. You could conceivably earn €100k per annum and be refused a loan of €5k due to the fact you are stretched at present (missed payment on current previous loans/credit cards etc).

    There is plenty of money out there in the banks to hand out, believe me. With term deposit rates at circa 5% APR, and lending rates between 8-12% approx, it would seem there is an abundance of short term finance available.

    What the banks are simply doing now is chosing their customers more wisely. People are saying that credit is tightening up and very few can get loans...In my opinion, banks are now taking some responsibility and only giving loans to those who can really afford them.


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    #17
    mickdw
    Registered Users Posts: 23,352 ✭✭✭✭mickdw


    2500 euro is small income for a family of three. Thats why they refused.
    As for the person with 60k+ per annum not getting a 3k loan, That person must be heavily in debt.

    Personally I was pre approved for a substantial person loan recently without any consistant record of income and also not being paid directly into bank so they cannot be tightening up too much.


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    #18
    ninty9er
    Registered Users Posts: 9,366 ✭✭✭ninty9er


    My parents' bank rang my mother asking if she wanted a personal or car loan the other day. It's one of the big 2 banks and their combined incomes come to less than 50k. They have a mortgage of almost a grand a month and a car loan.....yet the bank had pre-approved them for a €20k loan...There's not a snowballs chance in hell of them meeting affordability criteria on that.

    State of the country my arse....there's something about your personal finances setting bells ringing if you can't get €5k. I'm a student and I got more than that for a car loan with an 8 month placement contract and a part time job when I go back to college.


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    #19
    DonJose
    Registered Users Posts: 3,470 ✭✭✭DonJose


    ninty9er wrote: »
    My parents' bank rang my mother asking if she wanted a personal or car loan the other day.

    Same thing happens with me, the "assistant manager - relationship management" in my bank calls me every couple of months asking if I need anything, a loan or a mortgage. The money is there to lend, but the banks are choosing carefully who they lend to.


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    #20
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    This should probably be in the Banking forum. Anyhow.... I work as a personal lender. And yes things have tightened up. Foreign nationals are finding it increasingly hard to borrow money especially those on student visas. At the end of the day it's about repayment capacity, first track record next. A responcible lender should be able to satisfy himself/herself that said borrower can afford the monthly repayments. If someone is on 60k a year and is sufficently committed in terms of mortgage / credit card / other loan repayments then don't expect to be able to borrow much unless there is repayment capacity available.

    BTW credit card is one of the biggest downfalls one most loan apps. Someon on 60k with a limit of for example 10k (up to the limiy) cant expect to be able to repay much. How in ever it really depends on a lot of other variables. Credit applications are scored and as such if they fail the scoring procedure there is nothing much you can do.


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    #21
    peasant
    Registered Users Posts: 17,819 ✭✭✭✭peasant


    moved from motors as requested


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    #22
    ImDave
    Registered Users Posts: 1,096 ✭✭✭ImDave


    This might seem stupid but (assuming your circumstances are that of the stated), you might have been approved if you asked to borrow a larger sum. Banks are in no way immune to the rising costs of doing business, and need to make a greater ROI. There's not a great amount of money to be made on 3k or 4k.


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    #23
    shoegirl
    Registered Users Posts: 2,021 ✭✭✭shoegirl


    I would consider the income to be quite modest for a family of 3. I earn a bit more than that and find it difficult when big expenses come up. Having said that, it can be due to a lot of factors, including the size of the amount borrowed and previous history.

    I would be inclined to ask the lender the reason for rejection, chances are they may reconsider. If not, try another lender and see what happens.

    4 years ago I approached my then bank for a modest car loan of 3k just like yours. They refused me. So I closed my account and moved bank.

    The new bank gave me the loan no problem. Different banks have different ways of doing business. Try talking to them.


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