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Declined Loan by AIB - Next Step?

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  • 19-02-2009 1:01pm
    #1
    FullOf..IT
    Registered Users Posts: 368 ✭✭


    Hi,

    I just finished off paying back a load to AIB last month. I then decided to get another one with the same repayments. The purpose of this load was to pay of my credit cards and burn them.

    I applied online but heard nothig. Rang them and was told that i was refused because of the amount of money coming out of my bank account.

    I dont save as any extra money i have is payed off my credit cards so i thought the smart thing to do was to get loan and pay them off.

    I have never missed any payments on any loans / credit card payment with them and my credit rating should be impeccable. I have also taken out a car loan with BOS with i suspect is influencing their decision.

    What should I do? I understand the credit crunch has resulted in banks being tighter but can i take this further?

    Can i get MAB to influence them?

    Can anyone suggest a way forward as i relly need to destroy the credit cards.

    Thanks in advance


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    #2
    tHE vAGGABOND
    Registered Users Posts: 6,687 ✭✭✭tHE vAGGABOND


    contact the irish credit bureau people [google it for the url] and get a copy of your credit history.


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    #3
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    FullOf..IT wrote: »
    Hi,

    I just finished off paying back a load to AIB last month. I then decided to get another one with the same repayments. The purpose of this load was to pay of my credit cards and burn them.

    I applied online but heard nothig. Rang them and was told that i was refused because of the amount of money coming out of my bank account.

    I dont save as any extra money i have is payed off my credit cards so i thought the smart thing to do was to get loan and pay them off.

    I have never missed any payments on any loans / credit card payment with them and my credit rating should be impeccable. I have also taken out a car loan with BOS with i suspect is influencing their decision.

    What should I do? I understand the credit crunch has resulted in banks being tighter but can i take this further?

    Can i get MAB to influence them?

    Can anyone suggest a way forward as i relly need to destroy the credit cards.

    Thanks in advance


    It's unlikely they'll change their mind. The fact that you currently have so many other commitments is of course going to ring alarm bells.

    You could always try going to the branch and speak to the lending manager and see what they think in person. Even without knowing the figures though, my gut instinct (based on other loans, just finished one loan and multiple credit cards, no savings and undoubtedly money leaving the account to pay off these debts soon after it comes in) says "no". Even in better times, I'm sure questions would be asked about that scenario. In these tighter-belted times, they would really need to be convinced about lending you money.

    Lending is at the banks discretion. There is no obligation to provide you a loan, even if you've just had one, or even if you have a perfect credit record in the past. They have to give weight to your current financial situation and your future repayment capacity.

    So I'm not sure who you think you might appeal to outside of the bank itself - but no one can make them lend.


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    #4
    drunkmonkey
    Registered Users Posts: 28,190 ✭✭✭✭drunkmonkey


    have you bounced off your overdraft limit in the last few months, that can nearly gurantee you a no, another lender might be intrested if you could provide some clean bank statements...

    you could also try and get a top up on your car loan, not sure if that would be enough to clear the credit cards....

    talk to your local bank manager and see can he look after you...you better beg and promise to be really good and slash the credit limits on your credit card....


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    #5
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Out of interest, are the credit cards with AIB? If not, this would be another reason for a decline, as banks are reluctant to take on other bank's debts at the moment. If you have a card with AIB, maybe see would they arrange a loan to pay off their one, but it could be a long shot. I agree with Buffybot, you'd be better off trying to meet with someone in a branch.


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    #6
    Mr E
    Registered Users Posts: 55,514 ✭✭✭✭Mr E


    tHE vAGGABOND wrote: »
    contact the irish credit bureau people [google it for the url] and get a copy of your credit history.

    http://www.icb.ie - you can request a credit report online (it costs €6 and they'll post it to you within 4-5 working days).


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    #7
    sammyv
    Closed Accounts Posts: 149 ✭✭sammyv


    How about coming to an agreement with the credit card companies, and try and get your payments to a similar amount as you previous AIB loan.

    they have already given you a reason for the decline, so i doubt they will change their minds.

    What sort of S/0 and DD's do you have set up on your account?
    What companies are you credit cards belonging to? and if you don mind me asking, how much do you owe?

    MABS deals with people who are in financial difficulties- is this you?


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    #8
    VB1962
    Closed Accounts Posts: 32 ✭VB1962


    You've just finished making loan payments - so these funds are still available to you to repay the Credit Card.

    Transfer the Card to a company that offers 0% on balance transfers (Tesco currently offering 0%), make the repayments, cut up the old card and the new card and watch that balance drop.

    In 5 months time, visit 'Itsyourmoney.ie' and find out who is now offering the lowest or zero rate and move your business to them.

    I don't know how much you owe but hopefully the numbers will work out for you.


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    #9
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Toots85 wrote: »
    Out of interest, are the credit cards with AIB? If not, this would be another reason for a decline, as banks are reluctant to take on other bank's debts at the moment. If you have a card with AIB, maybe see would they arrange a loan to pay off their one, but it could be a long shot. I agree with Buffybot, you'd be better off trying to meet with someone in a branch.

    Just to echo what Toots said, banks are reluctant to take on other banks debt and even more so now. The fact that you have no savings and have a lot of credit card debt (you now want to term) illustrates the fact that you do not handle your money well. In addition you have a car loan. Unfortunatly you are "overcommitted" and reality probably have little repayment capacity. You may not have missed a payment on the loan or credit card but your credit grading may not be healthy. For example, it is a term of an overdraft that the borrower must keep their account in credit for a minimum of 30 days. Anything less runs the risk of your account being downgraded and in turn having difficulty getting further credit.

    If the credit card was with the same bank then they would insist that you either reduce the limit significantly or close the credit card (as conditions) before a loan would be approved.

    I think you need to take on one credit card at a time, starting with the one on the highest interest rate. Concentrate on paying this off in full first with as much spare money as possible. Keep minimum payments up on the rest and continue with each card until all of the card debt is gone. It's really the only thing you can do apart from maybe appealing the decision. However underwriters don't really have much leeway at the moment. Maybe in the past they could have overruled a decision but now it's difficult.


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