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declined loan due to not having enough money for myself "after"outgoings

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  • 12-08-2014 4:08pm
    #1
    lifeandtimes
    Closed Accounts Posts: 2,021 ✭✭✭


    Hi,

    Maybe someone can shed some light on this?

    I applied for a first time car loan there and had a long conversation with the guy doing my application, everything was going fine and swimmingly until he said that he would not be able to process the loan due to my outgoings after deduction.

    After all my monthly deductions were made,including the cost of the loan per month i was left with just under 1K for the month, he said that the bank do not want to put financial strain on their customers and people with a loan must have a cost of living amount of 1200 or more after all these payments.

    Im perplexed, 1K is more than ample for me to live on through out the month after all my other direct debits and payments have been made.

    Can anyone explain this to me or has this happend to anyone else and if so how did you get around this?

    Im going to try other banks now but im a bit hesitant now and confused due to this

    Any feedback and imput would be of benifit as i have never heard of this


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    #2
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    This is what is happening now as a result of the banks throwing money at people during The Celtic Tiger.

    As well as being able to show that you can repay the loan under stress test rates, you have to have a minimum level of income to live off each month.

    You could ring the other banks and see what their minimum level net disposable income levels are as they vary but they will all be around that level.

    Do you have any other loans, overdraft or credit card? Some lenders automatically deduct 5% - 10% of the credit card limit off each month, so if you have a high limit it could be an idea to reduce it.

    Steven


  • Options
    #3
    lifeandtimes
    Closed Accounts Posts: 2,021 ✭✭✭lifeandtimes


    SBarrett wrote: »
    This is what is happening now as a result of the banks throwing money at people during The Celtic Tiger.

    As well as being able to show that you can repay the loan under stress test rates, you have to have a minimum level of income to live off each month.

    You could ring the other banks and see what their minimum level net disposable income levels are as they vary but they will all be around that level.

    Do you have any other loans, overdraft or credit card? Some lenders automatically deduct 5% - 10% of the credit card limit off each month, so if you have a high limit it could be an idea to reduce it.

    Steven

    thanks steve, damn i wish i was in the celtic tiger era then ha

    No other loans or anything, i do have a credit card and that was taken into account, i was just put off by it,ill give the other banks a ring tomorrow and see what they say


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