Overdraft application on BOI Current account

mikedd

Hi everyone, i'm quiet new here, but have a few questions and hopefully you guys can help me out answering them.

I applied for an overdraft on my current account for the amount of 1000 euro.
I have a yrly salary of 25.000 which comes around 1553 netto.

I manage my money well, I have a savings which takes out automaticly 250euro each month, and I haven't been overdrawn by any amount whatsoever. I always maintain a + balance.

I applied for this overdraft to have a small cushion since sometimes it would come in handy.

There are a few things.
1 I only live in Ireland for 7 months
2 I lived in the UK before, don't know if this has any regards on my application
3 I was approved for a mobile contract so I think my credit rating is good.

The reason why I'm asking for you guys advise is this.
I have had a few Outstanding bills which I paid of in the UK, but which messed up my Credit score a bit.

I had to fill in my previous address, so this is my UK address on my application.

I was just called by BOI - to talk about my application and it has just been send of to the underwriters.. How likely is it to get this, and my other question would be, a credit card would come in handy in times, that I would get this?

Thank you all for all the advise given.

finnteme

mikedd wrote: »

Hi everyone, i'm quiet new here, but have a few questions and hopefully you guys can help me out answering them.

I applied for an overdraft on my current account for the amount of 1000 euro.
I have a yrly salary of 25.000 which comes around 1553 netto.

I manage my money well, I have a savings which takes out automaticly 250euro each month, and I haven't been overdrawn by any amount whatsoever. I always maintain a + balance.

I applied for this overdraft to have a small cushion since sometimes it would come in handy.

There are a few things.
1 I only live in Ireland for 7 months
2 I lived in the UK before, don't know if this has any regards on my application
3 I was approved for a mobile contract so I think my credit rating is good.

The reason why I'm asking for you guys advise is this.
I have had a few Outstanding bills which I paid of in the UK, but which messed up my Credit score a bit.

I had to fill in my previous address, so this is my UK address on my application.

I was just called by BOI - to talk about my application and it has just been send of to the underwriters.. How likely is it to get this, and my other question would be, a credit card would come in handy in times, that I would get this?

Thank you all for all the advise given.

If you have got bill pay phone, that does not mean nothing. They are not able to check yout credit scores.

I have been living in Ireland for several years, and just got my first overdraft and credit card.

Basicly you need to have credit history in ICB, before anyone will grant you credit facilities. Usually banks here want to see 6months salary etc coming in to account to even concider you for an overdrafts etc, and as i was declined several times by BOI,i moved to Ulsterbank, got overdraft after 6months, and later on the credit card aswell.

Your UK credit rating should have no effect, if you havent messed with BOI in UK.

Good luck with your application..

Jester144

The reason you would have been referred to the underwriters is because you are 'borderline' and they don't have enough information on your ICB report to establish your ability to repay. It is not likely they will do a check on your UK address, but if they had done this and your score was poor you probably would have been declined straight away.

I would take it as a good sign - at least your application is being considered. But as previously said - BOI are not the best at saying yes!

coylemj

Even if you never use it, having an overdraft facility on your BOI current a/c will cost you €25 p.a.

mikedd

finnteme wrote: »

If you have got bill pay phone, that does not mean nothing. They are not able to check yout credit scores.

I have been living in Ireland for several years, and just got my first overdraft and credit card.

Basicly you need to have credit history in ICB, before anyone will grant you credit facilities. Usually banks here want to see 6months salary etc coming in to account to even concider you for an overdrafts etc, and as i was declined several times by BOI,i moved to Ulsterbank, got overdraft after 6months, and later on the credit card aswell.

Your UK credit rating should have no effect, if you havent messed with BOI in UK.

Good luck with your application..

No I haven't got any outstanding bills with anyone any more... I repaid everything.. So hopefully they approve it..

mikedd

Jester144 wrote: »

The reason you would have been referred to the underwriters is because you are 'borderline' and they don't have enough information on your ICB report to establish your ability to repay. It is not likely they will do a check on your UK address, but if they had done this and your score was poor you probably would have been declined straight away.

I would take it as a good sign - at least your application is being considered. But as previously said - BOI are not the best at saying yes!

So if it wasn't possible she would have called me and refused my request you mean?

I haven't got anything with any bank in the UK any more.. If I would have been declined they wouldn't even call me probably?

mikedd

coylemj wrote: »

Even if you never use it, having an overdraft facility on your BOI current a/c will cost you €25 p.a.

Well that's not a problem.. It would just be handy to have it when necessary..

mikedd

But normally you will only be checked here right? I mean regarding the credit check?

mikedd

When you get a mobile phone contract they do a check with the icb as well ain't it.. Or how does that work....

finnteme

mikedd wrote: »

When you get a mobile phone contract they do a check with the icb as well ain't it.. Or how does that work....

No, only banks and financial institutes have access to ICB.
You can see the list here http://www.icb.ie/membership.php


Mobile phone operators use their own internal credit score system, for example how long have you been living in same address, employed or not, do you have landline nr (believe or not.. ), do you have any prev. outstanding balances with them etc etc..

Jester144

mikedd wrote: »

But normally you will only be checked here right? I mean regarding the credit check?

Probably, they are more interested in how you run your bank account. Each bank account is given a grade and that would be an indicator as to them as to whether to consider your application.

If it was a straight forward decline, they would tell you, or write to you, so the fact that they are considering it, means you must have a grade good enough, but the underwriters are tough cookies!

mikedd

Jester144 wrote: »

Probably, they are more interested in how you run your bank account. Each bank account is given a grade and that would be an indicator as to them as to whether to consider your application.

If it was a straight forward decline, they would tell you, or write to you, so the fact that they are considering it, means you must have a grade good enough, but the underwriters are tough cookies!

But the person on the phone said that it still could be rejected.. Then again I have a savings account as well which I never take any money from.. I don't gamble online etc.

So if I have a mobile phone contract that doesn't mean a thing? I mean regarding my credit score? If you would have a bad one I would have been rejected right?

Doesn't Ireland have one central place for credit checks? I don't fully understand this system..

Thank you all for replying and giving me this advice..

My affected credit score in UK isn't taken in account here then?

Jester144

mikedd wrote: »

But the person on the phone said that it still could be rejected.. Then again I have a savings account as well which I never take any money from.. I don't gamble online etc.

So if I have a mobile phone contract that doesn't mean a thing? I mean regarding my credit score? If you would have a bad one I would have been rejected right?

Doesn't Ireland have one central place for credit checks? I don't fully understand this system..

Thank you all for replying and giving me this advice..

My affected credit score in UK isn't taken in account here then?

Yes, it could still be rejected if the underwriters look at all the information and decide you are too much of a risk, but the fact that it is being considered is a good thing. When you apply for credit, you will fall into one of 3 categories, Accept, Refer or Decline. In your case, you have come up as a refer (to the underwriters).

As far as a mobile phone contract is concerned, this does not appear on your credit report. The only time your mobile phone would appear on your credit report is if you did not pay at all and the mobile phone company decided to take you to court, and you would then get a CCJ (County Court Judgement) showing that you failed to pay. A CCJ would mean that the mainstream lenders would more than likely not lend.

The Irish Credit Bureau is the central point for credit checks in Ireland, but BOI will also look at what grade your account is, and this is determined by how well your account is run. The fact that you have savings is also a good thing.

BOI could look at your UK report if they wanted to, or they may not.

mikedd

Hi Jester,

Thanks for all the good information which you given me, I'm a lot more informed than I was when I posted this.

Only hope for the best.. one last question is, do they often check someone's credit score in UK? When someone apply's?

The reason why I'm so onto this is, since I have a 'steady' job here, and my savings are for a future purchase of a house, which is going to take a while before I get there, but anyway, that's my intention..

I thought having an overdraft is and shows that I'm well capable of managing my money.. And as well that I have savings..

This is my only concern, if they did check it, and it would come out negative, this will also affect any future application isn't it?

Anyway thanks for all the information and have a good sunday

Jester144

mikedd wrote: »

Hi Jester,

Thanks for all the good information which you given me, I'm a lot more informed than I was when I posted this.

Only hope for the best.. one last question is, do they often check someone's credit score in UK? When someone apply's?

The reason why I'm so onto this is, since I have a 'steady' job here, and my savings are for a future purchase of a house, which is going to take a while before I get there, but anyway, that's my intention..

I thought having an overdraft is and shows that I'm well capable of managing my money.. And as well that I have savings..

This is my only concern, if they did check it, and it would come out negative, this will also affect any future application isn't it?

Anyway thanks for all the information and have a good sunday

Banks only normally want your previous addresses for the last 3 years. It might be slightly more for a mortgage though. Presumably when you apply for a mortgage in the future, you will have been in Ireland for a few years, so you will not need to mention the UK address. If you have paid all your debts and you do not owe any money in the UK, then no one is going to be looking for you in Ireland, and this will keep your credit report in Ireland 'clean'. If anything has shown up from UK then BOI will ask you about it, but if you have come up as a refer it is unlikely.

If you don't mind me asking - how bad was your debt in the UK?

mikedd

There isn't any debt in the UK anymore.
It has been paid off, but the reason why I'm asking this, is that my Credit rating isn't were it should or needs to be..

Hopefully you understand what I mean, I had some trouble 2 yrs ago, which has been paid off, but unfortunately I was without work for a while, and caused biils to be outstanding for a while, which caused my account closed.. But I paid it all off in 3 months time when I got a new job.. Thank god!!

Unfortunately this will always follow you, even do you did pay it off.. That's what I meant.. I was just thinking that if someone checked it, then they would obviously know about it, and for future applications mean that it would mess things up as well..

I got a permanent contract and everything here, as well as what I had in the UK.. But just don't want to have any negative effects on it, want to be well prepaired before I do anything now, mistakes are there to be learned from.. And I have learned a lot..

Save as much as I can, so I will never have to encounter this anymore..

I didn't ask it as I'm thinking as if someone is looking for me, but only when you apply for something here, if it will have any effect on it, regarding the credit score.. Hopefully I have explained myself better now

mikedd

Jester144 wrote: »

If anything has shown up from UK then BOI will ask you about it, but if you have come up as a refer it is unlikely.

What do you mean with this?

Jester144

I think you would be better off getting your Experian Credit Report from the UK. Maybe things are not as bad as you think? At least you will know exactly what your report says.

mikedd

Ooh I know what the report say's.. I have the report here..

There isn't anything showing up as outstanding, since I paid everything off, that's not my worry, there is just one thing which isn't what I would want it to be, that's everything..

But overall I don't know..

The score isn't the greatest..

Jester144

What I mean is that when your application went through to be processed, then if they had checked your UK credit report, and it was bad, then you would probably have been declined straight away, so the chances are, they did not check it.

mikedd

Thanks Jester

How come you know so much about all of this?

So when you apply for something, they check you out first with the ICB? I think? And that all fine, then they callled me, seen my application and account history, it's better that an 'underwriter' checks the account out once more?

So if they did check it in the first instance, and it would have been checked in the uk as well, it would havbe been declined..

Hopefully not, as this is one step closer to reaching my goal, having my own house, and beeing able to have everything were I want it to be..

Thanks again Jester

Jester144

mikedd wrote: »

Thanks Jester

How come you know so much about all of this?

So when you apply for something, they check you out first with the ICB? I think? And that all fine, then they callled me, seen my application and account history, it's better that an 'underwriter' checks the account out once more?

So if they did check it in the first instance, and it would have been checked in the uk as well, it would havbe been declined..

Hopefully not, as this is one step closer to reaching my goal, having my own house, and beeing able to have everything were I want it to be..

Thanks again Jester

It really depends - you said there was just one thing on your UK credit report that you did not like - what is this? It may not be as bad as you think! Is it a default or a CCJ?

mikedd

Noooo, no CCJ's thank god!

Default.. But paid of, already almost 2 yrs ago.. but it's stuck on it..

Jester144

mikedd wrote: »

Noooo, no CCJ's thank god!

Default.. But paid of, already almost 2 yrs ago.. but it's stuck on it..

So it will be on there for 3 more years. I would not worry too much about this. The fact that it is 'satisfied' will go in your favour. You could always explain about it before you apply for a mortgage if you felt it was something you wanted to explain, but if not I should think that the fact it is paid will be enough - and the longer in the past it is, the better!

mikedd

Jester144 wrote: »

So it will be on there for 3 more years. I would not worry too much about this. The fact that it is 'satisfied' will go in your favour. You could always explain about it before you apply for a mortgage if you felt it was something you wanted to explain, but if not I should think that the fact it is paid will be enough - and the longer in the past it is, the better!

Hi.. Haven't gotten any response from BOI and nothing is updated on my account..

Cross the fingers ill have it tomorrow.. Time to build up some credit history for the future I really hope it will pass and I will get it..

Hmmm...