Personal Loan Denied

jah718

Hi, 

I made an application for a personal loan today of €2,000 to cover some dental work. I could pay for it up front, but decided it would be better to spread out the payments over a year. 

I am married, we have monthly earnings of approximately €5,100 after tax. Commitments of about €2,100 per month including rent. 

I am a bit baffled as to how BOI think I am unable to repay €174 a month for a year! I used their online loan calculator to see how much I could borrow and it said €14,000 over 1 year, so I really don't get how €2k could be too much. 

Bank of Ireland: Jennifer

jah718 wrote: »

Hi, 

I made an application for a personal loan today of €2,000 to cover some dental work. I could pay for it up front, but decided it would be better to spread out the payments over a year. 

I am married, we have monthly earnings of approximately €5,100 after tax. Commitments of about €2,100 per month including rent. 

I am a bit baffled as to how BOI think I am unable to repay €174 a month for a year! I used their online loan calculator to see how much I could borrow and it said €14,000 over 1 year, so I really don't get how €2k could be too much. 

Hi jah718,

Thanks for getting in touch with us here.

We are very sorry to hear this. Please be assured that all applications are assessed on an individual basis with a number of factors taken into consideration. If you would like to discuss the decision behind your loan we would recommend that you call our Lending Team on 0818 200 420 and one of our advisors will be more than happy to look into this for you.

Thanks Jen

jah718

Bank of Ireland: Jennifer wrote: »

jah718 wrote: »

Hi, 

I made an application for a personal loan today of €2,000 to cover some dental work. I could pay for it up front, but decided it would be better to spread out the payments over a year. 

I am married, we have monthly earnings of approximately €5,100 after tax. Commitments of about €2,100 per month including rent. 

I am a bit baffled as to how BOI think I am unable to repay €174 a month for a year! I used their online loan calculator to see how much I could borrow and it said €14,000 over 1 year, so I really don't get how €2k could be too much. 

Hi jah718,

Thanks for getting in touch with us here.

We are very sorry to hear this. Please be assured that all applications are assessed on an individual basis with a number of factors taken into consideration. If you would like to discuss the decision behind your loan we would recommend that you call our Lending Team on 0818 200 420 and one of our advisors will be more than happy to look into this for you.

Thanks Jen

I actually did this already Jennifer and they said it was a matter of incoming vs outgoing. I am genuinely confused if any bank would believe that someone with the situation above would believe that repayments of €174 per month constitute a risk. 


I have been considering leaving BOI for a while now due to poor customer service after being a long standing customer for more than 15 years and this has pretty much made up my mind. 

JeffKenna

13 years ago Bank of Ireland gave me a loan of €235,000 based on an annual salary of €19,000 so nothing they do would surprise me to be honest.

Avatar MIA

No idea of your personal history, and these are some generic reasons why someone that ostensibly looked to qualify for a loan may not get one. These may not apply to your case.

1. Poor credit history in the last 5 years.
2. History of paying money to online betting companies through credit/debit cards.
3. Not being in current employment long enough.

With that excess income you'd be better off paying in advance, so see it as a good thing.

jah718

Avatar MIA wrote: »

No idea of your personal history, and these are some generic reasons why someone that ostensibly looked to qualify for a loan may not get one. These may not apply to your case.

1. Poor credit history in the last 5 years.
2. History of paying money to online betting companies through credit/debit cards.
3. Not being in current employment long enough.

With that excess income you'd be better off paying in advance, so see it as a good thing.

Thanks for your reply. On your points above:

1. Pristine credit history - only have 1 car loan always repaid on time, and credit card, cleared every month.
2. Never use online betting companies and never have in the past
3. Have been consistently in employment for the past 6 years. 

In addition, and to make things all the more ridiculous, I was approved for a €10,000 car loan last year that I didn't pursue in the end. I now also earn 50% more than I did when that loan was approved.

I know it is obviously better to just pay for it up front, and I think that is the way to go now, but on principle, I just really want to know why I would be rejected. 

Bank of Ireland: Jennifer

jah718 wrote: »

I actually did this already Jennifer and they said it was a matter of incoming vs outgoing. I am genuinely confused if any bank would believe that someone with the situation above would believe that repayments of €174 per month constitute a risk. 


I have been considering leaving BOI for a while now due to poor customer service after being a long standing customer for more than 15 years and this has pretty much made up my mind. 

Thanks for the information. We are very sorry to hear this. There are a number of factors taken into consideration when reviewing a Loan application. Please be assured that we appreciate all feedback we receive from our customers and we will be sure to pass this on. However if you would like to make an official complaint in relation to your experience please do not hesitate to get in touch with us and we would be happy to provide you with the information you need to do this.

Thanks Jen

Worried2019

Have you actually checked you credit rating?
You can do it online for free and will be with you in a few days.

My guess would be something registered with the car loan that you didn’t take as not paid or something!

Either way refusal for this loan will be logged on your credit history as a negative so would be good idea to sort it out if it is false.

My husband and I have roughly the same take home pay, only difference is we have a mortgage too. BOI issued me with a credit card for 9K last month after I requested a 2K limit... this prompted me to check my credit report and you can see what checks they ran for that credit card so presumably you would be able to see what checks were run for the loan..

jah718

Worried2019 wrote: »

Have you actually checked you credit rating?
You can do it online for free and will be with you in a few days.

My guess would be something registered with the car loan that you didn’t take as not paid or something!

Either way refusal for this loan will be logged on your credit history as a negative so would be good idea to sort it out if it is false.

My husband and I have roughly the same take home pay, only difference is we have a mortgage too. BOI issued me with a credit card for 9K last month after I requested a 2K limit... this prompted me to check my credit report and you can see what checks they ran for that credit card so presumably you would be able to see what checks were run for the loan..

I haven't checked it but will be sure to check it now. 

I don't think it could be anything on the car loan as it is paid by direct debit every month and there has never been any issues. 

I have a BOI credit card with a €4k limit, so I could easily just put these expenses on the credit card if I wanted to. I guess I am just a little bit annoyed that they can see my bank account, my salary being paid in, see that I have a 4k credit card that is unused and still deny me a loan of 2k! It just doesn't make any sense to me. 

emeldc

jah718 wrote: »

Worried2019 wrote: »

Have you actually checked you credit rating?
You can do it online for free and will be with you in a few days.

My guess would be something registered with the car loan that you didn’t take as not paid or something!

Either way refusal for this loan will be logged on your credit history as a negative so would be good idea to sort it out if it is false.

My husband and I have roughly the same take home pay, only difference is we have a mortgage too. BOI issued me with a credit card for 9K last month after I requested a 2K limit... this prompted me to check my credit report and you can see what checks they ran for that credit card so presumably you would be able to see what checks were run for the loan..

I haven't checked it but will be sure to check it now. 

I don't think it could be anything on the car loan as it is paid by direct debit every month and there has never been any issues. 

I have a BOI credit card with a €4k limit, so I could easily just put these expenses on the credit card if I wanted to. I guess I am just a little bit annoyed that they can see my bank account, my salary being paid in, see that I have a 4k credit card that is unused and still deny me a loan of 2k! It just doesn't make any sense to me. 

I think you've just answered your own question there. Having a CC limit of €4K means you have a 'potential debt' of €4K. Reduce it to €500 or get rid of it altogether.