Declined for €10k car loan & don't understand..

M

Mag2006

Registered User
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191
Hi all,

In a terrible pickle at the moment and furious at my own bank AIB. I applied for €10k car loan over 5 years which is only €204 per month and they turned me down. Reason being that my salary comes in and goes out too quickly or something like that. Well I nearly died, we just bought a house (our 1st) so we have had alot of expenditure over the past 6 weeks but we have never gone into the red, we earn good money and the account is always in the black, basically we are never broke. Also, I had a €5k loan with them last year which I actually paid off early, it was over 2 years and I never missed a payment, and before a year was up I had paid it off.

GE Money have now also declined me and I don't get it. I know my credit rating is clear and I now use my married name and have my new address so what's going on here??.

My application is like this, can someone tell me what to do as I need to change my car and I have sold it to someone else as I was sure I would get a €10k loan!!.

I did a single application, in my married name, home owner, nett take home pay €2,700 per month, have 2 kids, mortgage is €1,600 but our household Income €5,300 per month after tax so I just don't understand why I have been turned down, especially by my own bank who gave me a loan and credit card when I was a tenant and on less income.

Help, I really have to get a loan of €10k, going mad thought it would be done and dusted very fast.
 
Hi
I applied to AIB for a 30,000 car loan. There was no problem with a hire purchase loan but they declined me for the normal 30,000 loan. I have been banking with AIB for 8 years and have 2 mortgages with them. This really pissed me off. I went to permanent TAB they too said no problem with the hire purchase and the other loan would have to go to the manager to be approved. Answer came back no problem and I don’t even bank with them I must add that I have 25,000 in shares that I was willing to put up to secure the loan with both banks. Because they are shares they could not be used to secure the loan. The PTSB was in swords and the girls name was Donna. Hope this is of some help.
!RAY
 
I think they typically look at your bank account for the last 3 months. Could it be that due to moving into a new house you have had a bit more expenditure than normal? Could you try applying in joint names with your husband?

Another option (if you have savings there) is credit union but if you have no savings then it would be too long before you could save enough to get loan from them.

I feel your pain - this happened to me about 3 years ago and the only thing i could think of at the time was some excess expenditure in the previous weeks.

Shop around and try a few banks you might be lucky.
 
Thanks for that Ray, I am so annoyed with AIB. I would consider us excellent customers. I was furious with the manager saying I was declined coz my salary comes in and then goes out to frquently, like who's doesn't we all have mortgages, bill, have to eat etc and it's never like we are down to our last €100 in a month, so so mad at them. I live in Wicklow so might apply online to TSB and see what happens...
 
I would move everything only for it would be like starting all over again really. We have all bills, mortgages on direct debit, have AIB Visa cards and most banks you have to wait 6 months before you get a laser card and I can't live without mine, use it for everything as I don't have the time to get to an ATM when I need to.

I acknowlegde that alot of money was coming out of our account for all house things but we have saved €10k for all that so nothing was not paid and we never went over our limit. It's disgraceful and the way I was spoken to by the manager was nasty. I have sold my current car privately and the buyer wants to collect next week and I have the new car held for me and I just cannot believe I can't get a loan of €10k which I can more than afford!.
 
Mag2006 said:
most banks you have to wait 6 months before you get a laser card and I can't live without mine, use it for everything as I don't have the time to get to an ATM when I need to.
Click to expand...

Is this true?

I assumed that you were given a laser card straight away on opening a current account.

Are Halifax not offering this in the form of their debit card which you receive on opening the account?

ANd as far as I know with the switcher options now your DD are automatically transferred to your new account.
 
I am with AIB for years and the only reason I think this is because recently a friend of mine opened an account with BOI and was told she has to have her account for 6 months before a laser card is issued. She earns €50k per annum and has her own house and in the same employment for over 5 years, so I was shocked!.
I haven't looked into changing but I am going to do that today, apparantly NIB are supposed to be very good now so will check them out.
 
Mag2006 said:
most banks you have to wait 6 months before you get a laser card and I can't live without mine
Click to expand...

true when you open your first account...not true afaik when you transfer your account from one bank to another and have previous statements..
 
Going back to your issue...

Mortgage = 1600 Income = 3500
That's 46% of disposable salary for mortgage repayment, way above the recommended limit of 25%..
I would think this is why you are getting refused..

Have you tried http://www.tesco.ie loans?
 
Hi there bacchus
Mortgage =1600 Income 5300 = 30% and recomended limit is 40% of income...
 
pinkyBear said:
Hi there bacchus
Mortgage =1600 Income 5300 = 30% and recomended limit is 40% of income...
Click to expand...

oups, got my figures all wrong then.

I had a closer look at the limits and indeed banks seem to set it up between 30% and 40%.
 
Can you not get car finance from the garage where your new car is held - they are usually pushing it upon you
 
shanegl said:
Does the fact that you did not do a joint application affect the percentage?
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I was wondering about this one, does anything think I should go back to them and ask them to put the application through in joint names. We have a number of accounts with them (1) joint current account (2) AIB Visa cards x 2 (3) I still have a current account there in my maiden name that is just used for the childrens allowence and early childcare payment (4) An online savings account which is our rainy day account and we pay €120 per month into that and it's just there for back up.
Still upset that I was declined and just baffled!!:confused:
 
NHG said:
Can you not get car finance from the garage where your new car is held - they are usually pushing it upon you
Click to expand...

I got €15k approved with another garage last week when I was buying another car but I changed my mind on that particular car and have went for one in a different garage. Told the new dealer I was arranging my own finance as I was sure I would be fine!!. Half afraid to go down that road with new dealer incase I am declined through him and he sells the car to someone else!:(
 
Mag2006 said:
I got €15k approved with another garage last week when I was buying another car but I changed my mind on that particular car and have went for one in a different garage. Told the new dealer I was arranging my own finance as I was sure I would be fine!!. Half afraid to go down that road with new dealer incase I am declined through him and he sells the car to someone else!:(
Click to expand...

Bear in mind when arranging finance with garage you will pay over the odds. The garage makes their commission by selling over the normal base rates of the banks. Most garages use what was woodchester, now GE.
 
"Bear in mind when arranging finance with garage you will pay over the odds. The garage makes their commission by selling over the normal base rates of the banks. Most garages use what was woodchester, now GE." dk99

Not always the case, you are being quoted €204 a month for €10,000 thats an APR of 8.26 % a garage will give you this rate.

Go back to garage say you would like to apply for finance through them as you dont have time to be going into you own bank to do it, say you did get an online quote for €204 a month and ask can they match this - they should.
The garage will try a few bank, probably, GE, PTSB,BOI,AIB so chances are you will get accepted by one.

dk99 garages get lower base rates for putting business the banks way so usually the rate you get with the garage will be similar to what the bank offer. OP being quoted 8.26% id be very surprised if garage didnt match that.
 
The rate with the garage wasn't that bad at all plus the gas thing is I was approved for €5k more than I want now!!!. JAYSUS!!.
I can't go back to that dealer if I am not buying the car off them, they were cross enough when I told them I didn't want it in the first place!!
 
Would the fact that you were approved for 15k the week before applying for 10k have affected the latter application? Might look like you were looking for 2 loans?
 
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