Loan Refusal.

Valmont

I recently applied for an education (masters) loan of 8,000 euro with Bank of Ireland to be repaid over three years. I currently have savings of 5,000. The manager told me (voicemail) that my application didn't meet the banks "scoring system" for that amount over that term. Can anyone shed any light on what this means, exactly? I can't get down to the bank until Thursday because of work and I need a new plan before then.

Half of my savings are with the credit union so I was thinking that I could empty my BOI current account into that and apply for a loan with the credit union but I've been told that the credit union will make me pay it back far sooner than the bank.

Thanks in advance.

bills

Hard to know that without knowing financial circumstances & credit history.

Contact your local credit union. You cant defer payments but they will set as low as possible once you explain

gogo

I think there are limits on how much you can borrow under the student flag, but this aside if it failed under their scoring system, this means that you didnt meet there other critera, which can include ability to repay, living exps, are you renting -this can also affect it, stuff like that. If you go to the credit union, they may require you to pay it off with a longer term, but theres nothing to stop you manually lodging to the loan regulary to bring it down. or making a lump sum payment. Just check that if you are given a fixed rate that you will not be penalised for repaying early. If you are not going to be penalised, make the required repayments and lodge extra when you can, thus reducing the term of the loan that way.

jd83

Yh go to credit union. Im sure i dont have a good credit rating, not because i didnt pay back a loan but because ive had never had any loans and didnt have much much savings.

I went to the credit union, and saved with them for a few months and they gave me a loan straight away. Now anytime i need a loan i just go to them.

Valmont

bills wrote: »

Hard to know that without knowing financial circumstances & credit history.

Contact your local credit union. You cant defer payments but they will set as low as possible once you explain

I was surprised because I've only ever had four loans in the past, totalling around 6 thousand euro. Three of those were with the bank and I paid two of them off early. I paid off my other loan with the credit union right on time. I missed some credit card payments between jobs last September but that's it in terms of any bad effects on my credit rating. Anyway, I guess I'll head down to the credit union and negotiate with them after I talk to the bank again. Maybe they could give me less or something. Thanks for perspectives anyway guys!

3DataModem

Valmont wrote: »

Three of those were with the bank and I paid two of them off early.

This is probably it - paying credit off early is usually NOT good for your credit score. Also means that those two loans were unprofitable for the bank... hence their unwillingness to lend again.