Loan rejected for Bad Credit

DulchieLaois · 29-09-2015 1:25pm #1

I am seriously peed off with BOI.

I had a case back in 2009 when i was out of work to which I defaulted on loans.

When, i secured employment again, i paid up on all missed payments and even completed the loan 6 months ahead of schedule which I did in 2012.

Now, since then, i have immaculte banking record, paid off a huge deposit with my wife to take ownership of a house with BOI.

Still, I cannot get a loan from BOI/TSB due to bad credit history which is on ICB until 2017.

My wife is affected as well, both she and I applied for a joint loan to BOI (she has been a loyal customer for 11 years without a single problem), yet we were rejected for a loan for home renovation this week and yet we offered the bank our savings to match to loan amount as security.

Is there anything we can do in order to get a loan from any bank with savings to act as lien to match the loan amount ?

Kristopherus · 29-09-2015 1:27pm

Shop around, but stay well clear of the sub-prime vultures.

DulchieLaois · 29-09-2015 1:29pm

Thanks Kris, any suggestions as to where i can shop around with ?

PaulM1977 · 29-09-2015 2:42pm

Hi DulchieLaois,

Did you try just your wife applying for the loan, as the loan that was cleared back in 2012 was in your name only,this is what I am assuming from your OP.
Also, did you get a copy of your ICB at www.icb.ie, to see if the missed payments were showing up on this? It may be that as you had the loan with BOI and you applied to them again this time, that they would have a longer view of your credit history(as you bank with them) and have decided to decline your loan application. Whereas other lenders would not have access to these details and would only go off the information from the ICB, if this is clear then you should be fine for finance elsewhere.
Also, are you a member of a credit union as they may be more willing to lend to you if you are saving with them. If not, try AIB or PTSB to begin with.

Thanks,

PaulM

DulchieLaois · 29-09-2015 3:21pm

I did apply for a laon with TSB and this was rejected based on ICB review yet it happened with BOI and it is still showing on the ICB report

I have a copy of my credit history and tells me that 2017 is when everything will be cleared.

I guess, all banks will have this access therefore drawing me and my wife down as a result yet her record is perfect

PaulM1977 · 29-09-2015 3:38pm

Was the original loan that you defaulted on, in both your names or just yours?

If only in your name, can you apply for the loan elsewhere in your wife's name only?

Are you member's of a credit union?

Thanks

PaulM

wench · 29-09-2015 4:15pm

DulchieLaois wrote: »

we were rejected for a loan for home renovation this week and yet we offered the bank our savings to match to loan amount as security.

Is there anything we can do in order to get a loan from any bank with savings to act as lien to match the loan amount ?

If you have the money you need in savings, and you are willing to tie it up as security for a loan, why not just use it to pay for the work?

DulchieLaois · 29-09-2015 4:36pm

Not a member of a credit union

Defaulted on my name only and not joint

Why apply for a loan when we have savings - I guess we would like the money to be there still there after 5 years whereas if we spent it all now, the money would be much harder to save due to life events such as kids etc etc

phormium · 29-09-2015 5:05pm

Open a credit union account. If there are a few options in your locality ask them all what their lending policy is, some will accept an application immediately as an exception and if you have savings to match what you want to borrow you will get secured loan rate. Speak to lending officer or manager as opposed to just asking at counter, you would looking for an exception but that is not that unusual, will be referred to lending committee or board but if you have the income and savings you would have a good chance. Credit Unions are far more likely to listen to your story and how the blip happened, they will have access to ICB too but less of the 'computer says no' stuff.

Uncle Ben · 29-09-2015 5:07pm

phormium wrote: »

Open a credit union account. If there are a few options in your locality ask them all what their lending policy is, some will accept an application immediately as an exception and if you have savings to match what you want to borrow you will get secured loan rate. Speak to lending officer or manager as opposed to just asking at counter, you would looking for an exception but that is not that unusual, will be referred to lending committee or board but if you have the income and savings you would have a good chance. Credit Unions are far more likely to listen to your story and how the blip happened, they will have access to ICB too but less of the 'computer says no' stuff.

Credit unions are checking the ICB.

phormium · 29-09-2015 5:16pm

I know that, I said it in the post, it is not an attempt to get around the ICB report.

The point is they are more human and will listen to an explanation as to where the problems arose and will give a person another chance. Banks just have a no policy when it comes to bad ICB.

DulchieLaois · 30-09-2015 1:11pm

I will look into the Credit union option later in the week - is there no other way with the banks i wonder ?

xebec · 30-09-2015 1:28pm

DulchieLaois wrote: »

Why apply for a loan when we have savings - I guess we would like the money to be there still there after 5 years whereas if we spent it all now, the money would be much harder to save due to life events such as kids etc etc

Use the savings now and pay the amount you would have paid into a loan back into your savings account each week/month. Think of it as a loan and not as savings. Makes little sense taking out a loan when you have the cash to cover it, especially not if you are prepared to tie the cash up as security for the period of the loan.

Flatzie_poo · 30-09-2015 1:35pm

DulchieLaois wrote: »

I will look into the Credit union option later in the week - is there no other way with the banks i wonder ?

Depends on how much you want.

If I were you I'd take out a series of small loans. Circa 1k one after another.

Pay these back as fast as you can, way before the term you have secured.
Get another once paid back, then do the same again.

This will build up your credit score faster than waiting the 5 years you will need to otherwise. That's your best bet in terms of banks.

Other than that, a CU is your best option as posted above.

seamus · 30-09-2015 1:37pm

Just note there's usually a six month hold between getting your cash into a CU and being able to take out a loan against it.

PaulM1977 · 30-09-2015 2:18pm

Apply for the loan in your wife's name only, there shouldn't be an issue regarding credit history then. Credit Union is not an option if you are not a member at present.

Thanks,

PaulM

TheMilkyPirate · 30-09-2015 2:23pm

I opened a credit union account saved a small amount each week for two months and got a loan of 6000 with circa 500e savings so it shouldn't take too long to get a loan off them

phormium · 30-09-2015 2:50pm

All credit unions differ on their requirements re length of time member v loan app.

Some certainly will consider an application immediately, it's an exception but can be dealt with. Especially in the case of a secured loan there is no risk to the CU so far more likely to do it.

ps3man · 10-10-2015 1:48am

General rule of thumb with banks is that they won't consider any lending if there is anything on the ICB. Usually they keep records for five years from when the account is cleared so if you cleared it in 2012, 2017 is when you can begin to re apply, also all credit unions use the ICB system so that route won't work either. Not what you want to hear but its the unfortunate reality of having a history of bad credit.

phormium · 10-10-2015 9:02am

I totally disagree that the Credit Union route would definitely not work just because they now access the ICB too. Credit Unions in general will at least listen to your story regarding why the arrears occurred and not dismiss it out of hand in a 'computer says no' way of most banks. If you are upfront with the CU and they are happy with the explanation even though the ICB is not perfect you have a chance.

ScouseMouse · 10-10-2015 5:22pm

ps3man wrote: »

General rule of thumb with banks is that they won't consider any lending if there is anything on the ICB. Usually they keep records for five years from when the account is cleared so if you cleared it in 2012, 2017 is when you can begin to re apply, also all credit unions use the ICB system so that route won't work either. Not what you want to hear but its the unfortunate reality of having a history of bad credit.

Not all credit unions. My credit record is shot, and a credit union accepted me on the basis I was a good risk. They told me there is talk of using the ICB, but they, at least, were not using it.

ps3man · 10-10-2015 5:55pm

phormium wrote: »

I totally disagree that the Credit Union route would definitely not work just because they now access the ICB too. Credit Unions in general will at least listen to your story regarding why the arrears occurred and not dismiss it out of hand in a 'computer says no' way of most banks. If you are upfront with the CU and they are happy with the explanation even though the ICB is not perfect you have a chance.

Why would they waste their money using the ICB system if they are still going to approve you anyway regardless of whats on it? It costs money for the credit union to access the ICB records. 7euro a pop. They will probably hear you out but unless you have had a major change in circumstances they won't approve you. Well they shouldn't anyways. Circumstances do come into account. If the OP has a few missed payments on a loan thats one thing, if he has debts written off such as a credit card then there isn't a hope.

ScouseMouse wrote: »

Not all credit unions. My credit record is shot, and a credit union accepted me on the basis I was a good risk. They told me there is talk of using the ICB, but they, at least, were not using it.

Eventually they all will start using this new system that is coming in. Credit Unions suffered massively as a result of bad debt, mine had to be joined up with two other credit unions just to keep it solvent.

BuffyBot · 11-10-2015 7:34pm

Why would they waste their money using the ICB system if they are still going to approve you anyway regardless of whats on it? It costs money for the credit union to access the ICB records. 7euro a pop.

Most Credit Unions are now ICB members, and all will be before long.

You're also mixing up the cost of an ICB report to members of the general public vs what it costs organisations who belong to the ICB which would be minute in the overall scheme of things.

Loan rejected for Bad Credit

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