Was recently refused a car loan with BOI. It’s my first time applying for finance (I’m in my late 30s) and I naively assumed they would just look at my deposit and monthly salary and see I can easily make repayments and I’d get the loan no problem. I was refused as I had a credit card a few years ago this was paid off in 2020 and I’ve been paying the family member who cleared it for me monthly since. I wouldn’t be the best with money I spend mindlessly and let it run down to nothing but that’s mainly due to fact I have no bills apart from phone (so have v little to show in that regard). I’m wondering is there anything I can do to get the loan faster?
BOI refused car finance
- Thread starter Teacher24
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Perhaps stop spending mindlessly & start saving?
Best advice I ever got from one of my parents:
Before taking out a loan, work out the monthly payment & save that amount for 3 months.
Then you have established that you can afford the loan on your income & you also have more deposit saved, so you can borrow a bit less!
Best advice I ever got from one of my parents:
Before taking out a loan, work out the monthly payment & save that amount for 3 months.
Then you have established that you can afford the loan on your income & you also have more deposit saved, so you can borrow a bit less!
I was saving away alright but I do the food shop every week and then I’d get clothes for work etc also. I could save more but don’t go out or get takeaways or go on holidays no mortgage so spend instead of saving for those things. I can afford the loan no bother but need car as soon as possible. I just didn’t think bank would look unfavourably on spending. I’m not a natural saver I don’t get joy from seeing it build up at all.
https://bluestonemotorfinance.ie might be an option for you if your credit record is impaired because of the way you dealt with your credit card.
RichInSpirit
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Also I have heard before if you ask the car dealer to arrange finance for you, you could still end up getting finance from Bank of Ireland but arranged from the dealers end.
RichInSpirit
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If you can't borrow money for a car, why not just buy a very cheap second hand car that you can afford to buy without borrowing for it.
Thanks Tried this but was refused also for same reason - the credit card.
I have a car I’m trading in I don’t want an old car. I can afford new one but want to find best way to get finance for it. Want to stick with bank as it’s easiest I thought. Current car I paid off in full a few years ago and I have a buyer but can’t get rid of it unless I can get finance for new one. Current car too small.
presidenttttt
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What size car do you need? What is driving your "want" for a new car as opposed to a used one?
It strikes me you can not afford a new car! Each to their own of course, but it is a money advice and discussion forum, and a huge proportion of the country makes the bad financial decision in this exact scenario!
Most people do not need a new car, and they certainly do not need loans and PCP to buy premium brands, which inevitably are beyond their true affordability and end up taking cash flow from house deposits/pensions/smart use of money.
It strikes me you can not afford a new car! Each to their own of course, but it is a money advice and discussion forum, and a huge proportion of the country makes the bad financial decision in this exact scenario!
Most people do not need a new car, and they certainly do not need loans and PCP to buy premium brands, which inevitably are beyond their true affordability and end up taking cash flow from house deposits/pensions/smart use of money.
RichInSpirit
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Maybe you should get a hold of your CCR report. If you paid off the credit card in full in 2020 then it should disappear off your CCR report 5 years later in 2025.
Check this website https://www.centralcreditregister.ie/borrower-area/apply-for-your-credit-report-and-other-rights/
Check this website https://www.centralcreditregister.ie/borrower-area/apply-for-your-credit-report-and-other-rights/
As Rich says get the CCR report so that you can get full picture of what the bank(s) are seeing.
You are basically not going to get credit from a regular bank until this is clean.
Do you have a credit union account? These can use the CCR report but are less computer says no and will look at an individual case.
You would still need to save a few bob with them already though.
Finally you have the option of a specialist lender(google car finance for bad credit).
Personally having come from having a lot of debt to none I would be vary weary of buying a brand new car. If your current car is mechanically sound then I would stick with it for another year and save up the equivalent of the payments of the car. In a year I would then revisit
I initially cursed my CCR entries that hindered me from borrowing but over time I realised it was actually saving me from getting into debt again.
Thanks for this info. Once I get the CCR report what do I do with it?
I haven’t been in debt since and have been saving away monthly, my monthly earnings are more than enough to cover car repayments so it’s frustrating that bank won’t look at me.
I have credit union ac but haven’t used or saved there in many years.
I have someone willing to be a guarantor with car repayments as they did when I got my first car many years ago not sure if bank will accept this?
The CCR is the overview of your recent credit history. It is the report that all lenders will consult when you apply for any loan.
You can't do anything with it per se - you can't change the past - but you should check to see if it is both accurate and to confirm your previous credit card is actually dealt with. AAM is littered with posts where debts have come back to haunt people where they thought they'd been closed off.
It's not going to help with your immediate access to credit but while you say you "could" save more the lender will only be interested in what you "are" saving.
Unless your have a track record of your savings increasing by more than any potential loan repayment they will not lend to you regardless of your past credit issues. As it stands the impression you give in your posts is your current lifestyle might not be helping your case either.
RichInSpirit
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The credit union is probably the way to go to receive credit in your situation.
But you might have to pile a bit of money into your account over 3 to 6 months to demonstrate your repayment capacity.
They will see that there is a glitch on your CCR about the previous credit card but I have heard that they will consider lending to you 2 years after you clear a bad debt.
Answer any questions about the credit card honestly would be my recommendation.
You could always just call into the credit union straight away and discuss getting a car loan. If you haven't been using your account lately I suspect that you won't get a loan immediately.
But you might have to pile a bit of money into your account over 3 to 6 months to demonstrate your repayment capacity.
They will see that there is a glitch on your CCR about the previous credit card but I have heard that they will consider lending to you 2 years after you clear a bad debt.
Answer any questions about the credit card honestly would be my recommendation.
You could always just call into the credit union straight away and discuss getting a car loan. If you haven't been using your account lately I suspect that you won't get a loan immediately.
How much are you actually saving though? Are you saving the proposed repayment at a minimum? If not, with your CCR and lifestyle you are going to find it hard to get a loan. You say you can more than afford it but if you're not showing this to be the case in reality it won't work.
This would likely work with a credit union.
Thanks for this. You’re 100% right, I rang bank and they went through it with me. I wasn’t saving enough to meet the repayments, the credit card isn’t even that much of an issue. If I had a bigger deposit saved I’d be fine.
I’ll be the first to admit I’m terrible with money, I keep no record of when things are to be paid and often phone bill goes unpaid if money isn’t there to meet it. It’s definitely a lesson learned. BOI we’re v helpful and gave me some great advice. I’ll save as best I can for another few months and that will lower repayments.
The spending isn’t even their main concern it’s saving more than I need for the loan is my priority now.
I’d easily spend 400/500€ pm on clothing etc a habit I’ve gotten into over the years as I’ve no other big financial commitments. Definitely time to change this.
A few things you need to address:
1. Do an AAM Money Makeover and see what your main financial problems are. Others will let you know quite quickly
2. Get that copy of your CCR report because when you mention not covering your phone bill on time regularly then God knows what else is on it
3. Get into using your credit union account even if it is a small amount that you save regularly while you are sorting out the money for the car
4. Use your phone calendar to diary note when financial payments are due so that you won't miss them.
time to plan
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The Credit Union is a great idea. As soon as the OP gets paid each month the and before spending 400 to 500 on clothes, he should put say 200 in the CU account.A few things you need to address:
1. Do an AAM Money Makeover and see what your main financial problems are. Others will let you know quite quickly
2. Get that copy of your CCR report because when you mention not covering your phone bill on time regularly then God knows what else is on it
3. Get into using your credit union account even if it is a small amount that you save regularly while you are sorting out the money for the car
4. Use your phone calendar to diary note when financial payments are due so that you won't miss them.
Thanks I’ll have a think about the AAM money makeover, I had a look at the questions and tbh I don’t know the answer to a lot of them!A few things you need to address:
1. Do an AAM Money Makeover and see what your main financial problems are. Others will let you know quite quickly
2. Get that copy of your CCR report because when you mention not covering your phone bill on time regularly then God knows what else is on it
3. Get into using your credit union account even if it is a small amount that you save regularly while you are sorting out the money for the car
4. Use your phone calendar to diary note when financial payments are due so that you won't miss them.
I’ve applied for the CCR report and will have a look.
My only monthly bill is my phone so I’m lucky in that regard, my main spending is groceries and myself. But yes I’ll make note of when due so there is money in a/c to meet repayments.
On the credit union a/c if save with my bank is there a need to also save in CU? I’d like to still have money to spend on myself and I dont want to save every cent. I earn €1700 a fortnight and save €400 of this each time I get paid. I’ll be upping that though to say €550 ish a fortnight. Lots of room for improvement but it’s def been a learning curve for me.
That is unreal. I would not spend that on clothes per year.