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Declined for Loans in AIB and BOI

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  • 01-07-2009 8:32pm
    #1
    needcar
    Closed Accounts Posts: 29 ✭


    Hi Guys,

    i have just applied for my credit rating after being declined for a loan with both AIB (my bank of 10+yrs) and BO1.

    I have a current loan with 1500 left on it with AIB, which I have never missed a payment on, I have been in fulltime employment for the last 4 yrs, earn a good wage, dont have any credit cards etc.

    I was looking for a personal loan of 5000, paid back over 2 yrs (in fact i was going for variable as I expect to pay it back early to get it out of the way), with payment protection its only 250/262 per month.

    the loan is for personal expenditure, teeth whitening, shopping spree and nice holiday, you know the usual.

    AIB declined the application because I have an online savings account I never use, I drop money in and take it out again, and because I don't have an overdraft and once i went into minus as my current loan is going by an old salary date.

    they know how much i get paid so I dont understand!!! I can easily afford the repayments.

    so, i called boi and they said i was declined also but i wont know why until a letter is sent out.

    am i affecting my chances everytime i apply? i dont know where to go next about it? I want the money asap!:confused:


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    #2
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    needcar wrote: »
    the loan is for personal expenditure, teeth whitening, shopping spree and nice holiday, you know the usual.
    needcar wrote: »
    they know how much i get paid so I dont understand!!! I can easily afford the repayments.
    If you can easily afford the loan, then you can easily afford to save up for these things. Borrowing for luxury items is never ideal, and is considered financial madness in a recession.
    needcar wrote: »
    AIB declined the application because I have an online savings account I never use, I drop money in and take it out again, and because I don't have an overdraft and once i went into minus as my current loan is going by an old salary date.
    You think you can afford all these luxury items, yet are unable to commit to saving? From a bank's perspective, this is very dangerous territory.

    No responsible bank will lend to you given the details you mentioned above. Perhaps you should try Tesco/Credit Union/Sub Prime lender (if you can find one)


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    #3
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Having been a lender at one stage in my career, I can tell you that there's a lot of different aspects looked at when you apply for a loan. The system I used to use scored an application on numerous things e.g Profession, Time in Job / Address etc. In other words each question you were asked was weighted by the computer system enabling it to spurt out a decision. Other things like how long it was since your last loan, history of top ups etc were also taken into account. Most declines I would have seen were often down to tight Repayment Capacity.


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    #4
    needcar
    Closed Accounts Posts: 29 ✭needcar


    :p
    dotsman wrote: »
    If you can easily afford the loan, then you can easily afford to save up for these things. Borrowing for luxury items is never ideal, and is considered financial madness in a recession.


    You think you can afford all these luxury items, yet are unable to commit to saving? From a bank's perspective, this is very dangerous territory.

    No responsible bank will lend to you given the details you mentioned above. Perhaps you should try Tesco/Credit Union/Sub Prime lender (if you can find one)

    hi,

    i dont want to save right now, i dont need to at the moment and have always made my repayments on time.
    and i dont want to save up, i would rather have them now. :p


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    #5
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    needcar wrote: »
    :p

    hi,

    i dont want to save right now, i dont need to at the moment and have always made my repayments on time.
    and i dont want to save up, i would rather have them now. :p

    But from the bank's perspective, you did need to save. Had you being saving, you would have been able to afford these things without needing a loan. If you are making repayments of, say, €300 per month, then they need to know that you can live without €300 per month (at the very least) over the 2 years. But to date, the fact that you haven't been able to save this on a regular basis, indicates that you might have issues putting aside €300 per month for the duration of the loan. The fact that you have no savings indicates that you are only just living within your means.


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    #6
    needcar
    Closed Accounts Posts: 29 ✭needcar


    argh! im not going to argue, i'll just have to try somewhere else!:o:o:o


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    #7
    nayorleck114
    Closed Accounts Posts: 224 ✭✭nayorleck114


    Try Halifax, Was not a customer but got a load no probs.


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    #8
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    needcar wrote: »
    argh! im not going to argue, i'll just have to try somewhere else!:o:o:o

    Didn't mean to have a go at you :) Just giving you the Bank's perspective (and standard lending theory!) on things.


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    #9
    *littlestar*
    Registered Users Posts: 30 ✭*littlestar*


    I'm in a similar position but my money was purely for education. Wouldnt mind if it was a loan or a car or something I didnt need but was only the fees for a college course. Beyond annoyed that our taxes were used to bail them out and they're not releasing any of that money. Grrrrr.....


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