Would I be able to get a Loan?

Glacier

I own a house that I'm going to Rent out in a few weeks. I have a huge Gas Bill that I'd have to pay off. I do have savings & shares worth like €40k & if I was able to show proff the house was on the market, do you think I would be able to borrow €3000? I've never gone for a Loan before.

Glacier

Anybody?

B00MSTICK

Are you working at the moment? I got a year long car loan for €2700 from Ulster bank about 5/6 months ago just told them I was working in Dunnes and they didnt even look at my payslips just asked me if I was sure I could afford the repayments in 1 year or would Ilike to take it for 2 years instead.

Might be harder to get a loan now I suppose.

Pop in and set up a meeting, only takes a few minutes.

Caoimhín

Right, a few questions the bank may ask when considering the loan.

Do you have an active current account with the bank/credit union?
Are you working, or do you have any other income?
What do you want the loan for, can you prove this?
How long do you want the loan for, how much do you plan on paying off each month?

You need to have answers to these questions before you even ask. If your only income is from the rent money for the house, the bank is likely to ask for a copy of the signed lease or at least proof of the income for a few weeks.
Lending practices are seriously curtailed by the banks at the moment and probably will be for the next few years so you will need more than just a passing notion if you want a loan. They are just not very enthusiastic about giving loans on unsecured debt, that is, loans for things that are intangible such as bills or shopping.
The credit union might be more inclined to giving a loan to pay off a bill.

Hope this helps.

BendiBus

If you have savings worth 40K, would you not consider using some of that to pay the bill?

Do you think your investment return will beat the interest rate on a bank loan? Or do you have all your investments locked away?

Not preaching, but this is the perfect example of why anyone with the means should have an easily accessible 'rainy day' fund.

Vorsprung

Overdraft?

Glacier

I have a Current Account but in the last 2 months have missed payments. I am not working at the moment. I do have about €38,000 in shares & 825 in BOI & 725 in AIB (not that they're worth anything anymore) but I bought them a few years ago for €10k. I do own completely a house that I'm about to Rent out. If I could prove it was on the market, & that with the month's dseposit I definately would have 3 grand in a few weeks, would that do for a €2,500 loan?

If I told them it was for something other than a Gas bill, might I have a better chance?

Glacier

Explain to me exactly what is an overdraft?

Glacier

My shares will not mature till next year, but it's a show of wealth though, surely?

Caoimhín

Ok,

What do you mean you missed payments on your current account? A current account is simply your day to day account that you are paid into or take money out of at the cash machine. It shouldnt make any difference to a loan application if you have been putting money in regularly.
An overdraft is a facility on a current account which would allow you to withdraw money that isnt there. So say you had €100 in your current account and you had an overdraft facility for €2000. You could withdraw €2000 if you wanted. This means that you are now €1900 overdrawn €100 - €2000 = -€1900. The next time you pay money into that account it makes up for the amount you withdrew.

OP, what a bank is looking for when giving a loan is your ability to pay that sum back. Fair enough you own your house and you haves shares, these are indeed assets and the bank will look at them as collateral (things you could sell to get money to pay the loan if you really had too).

The bank manager/official will simply want to know how you can pay this sum back over a period of time and by a certain time (the term). Without an income every week from a job, the bank may look at the rent as the income. So yes, if you had the deposit and a copy of the lease )with the amount of rent on it per week/month) the bank might look at this as income to pay off the loan.

I will send you the bill for my financial advice later:rolleyes:

BendiBus

Glacier wrote: »

My shares will not mature till next year

I don't understand what you mean

I personally think you'd be crazy to borrow to pay a bill if you have ready access to the necessary cash!

Glacier

I was refused a loan for €1,000 yeasterday. I pay everything on Diect Debit but have missed the last few payments. I have a house that I'm renting out & definitely will have income of 17,000 over the next year. I also have €40,000 locked away that will mature next September. Also, I have 825 AIB shares & 750 BOI shares. At the moment I just have no access to cash. I know it's impossible to even get part-time jobs now. I could sell the shares but I really don't want to do that. I don't have an account in the Credit Union though. I have shares in Permanent TSB, could I try them?

I really appreciate all the advice, does anyone have any other ideas? I'm still stuck

Glacier

Would I be able to get an Unsecured Personal Loan?

Glacier

Do you need an Account with the Credit Union before they would give you a Loan?

Sinister747

Glacier wrote: »

Do you need an Account with the Credit Union before they would give you a Loan?

I certainly would consider that to be a required