# Good credit hist & salary:refused restructure loan to clear cc bal OD and other loans



## moneycheck (13 Feb 2010)

Hi folks, would appreciate opinions on the following:

I recently applied to an Irish bank , (bailed out by taxpayer) for a restructure loan, to clear credit card balance, clear over draft, clear 2 loans, and add 10k. I was refused, despite having an impeccable credit history and good  salary.

Figures involved were €26,000 which includes ( credit card, over draft, 2 loans) plus 10k top up. Also I stated to remove OD facility completely from account and also clear and close credit card, as i no longer wanted either.

net income is €3,550 per month.

 My history is excellent, never any missed payments of any sort, clean perfect credit history too.

*They said they would allow the restructure, but would not give the 10k.*

I was going to use the 10k to change my car (2.0 petrol), to a diesel one with €104 road tax, currently im paying €614 road tax, doing this would also reduce my fuel bill by 50%, and also my insurance by a few hundred euro.

So savings annually would be €510 tax,  €1,104 on fuel  €250 on insurance,  reducing my annual motoring bill by €1,804 per year, and I was going to put this saving as additional payments on the loan to clear it quicker.

Would appreciate your opinions on the above.


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## UFC (13 Feb 2010)

*Re: good credit history & Salary - refused loan*

Even during the boom, a personal loan of 36k which is mostly going towards paying off numerous debts would be hard to get.


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## moneycheck (13 Feb 2010)

*Re: good credit history & Salary - refused loan*



UFC said:


> Even during the boom, a personal loan of 36k which is mostly going towards paying off numerous debts would be hard to get...



i have done this before, in the past, no problems at all, and repaid it all early too. seems like it has gone from one extreme to the other.
had never any problems getting funds, from bank before, all items are with the same bank too.


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## WaterSprite (13 Feb 2010)

*Re: good credit history & Salary - refused loan*

I'm sorry moneycheck, but I think they made the right decision. You should take the restructure and save the money you save as a result to put towards the car.  Personally I think car loans are madness (that's purely a personal opinion).


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## senni (13 Feb 2010)

*Re: good credit history & Salary - refused loan*

I would say that with no security to back up this loan, you are fighting a dead duck.

Take the reduced amount and stick with that and save for the car !


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## UFC (13 Feb 2010)

*Re: good credit history & Salary - refused loan*



WaterSprite said:


> I'm sorry moneycheck, but I think they made the right decision. You should take the restructure and save the money you save as a result to put towards the car. Personally I think car loans are madness (that's purely a personal opinion).


 
I agree.

Someone with an overdraft, 2 loans and credit card debt should not be looking for an extra 10k credit.


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## Carolina (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> would appreciate your opinions on the above..


You can lease or buy a car from vw bank for vw/audi/seat/audi.

They are more willing to lend than the irish banks and they only charge 6.75%


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## chlipps (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



senni said:


> I would say that with no security to back up this loan, you are fighting a dead duck.
> 
> Take the reduced amount and stick with that and save for the car !


 

I agree with senni. Take the 16k and clear the debt. Also open a high interest savings account and save the money for the car and you should be able to get a car for less than 10K also.


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## Noor77 (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



UFC said:


> I agree.
> 
> Someone with an overdraft, 2 loans and credit card debt should not be looking for an extra 10k credit.


 
I completely agree with this. The bank would be insane to give a further "discretionary" €10k. I think the OP is very lucky to be getting the €16k. They may be glad down the line that they were refused the extra money.

I think that the banks behaved shockingly during the boom years but I don't believe this in any way removes from the need for people to be responsible for their own debt problems. 

Money the bank lends you isn't yours, it theirs.


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## moneycheck (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



Noor77 said:


> I completely agree with this. The bank would be insane to give a further "discretionary" €10k. I think the OP is very lucky to be getting the €16k. They may be glad down the line that they were refused the extra money.
> 
> I think that the banks behaved shockingly during the boom years ... but I don't believe this in any way removes from the need for people to be responsible for their own debt problems. Money the bank lends you isn't yours, it theirs.




I dont have a debt problem thank you very much!. My salary very comfortably pays the current ones  and never had a missed payment, ever in my banking history.

I purchased a good amount of their shares mach in mar 09 when the price was very low and there were questions about their survival, so i took a gamble on them then  and then sold in mid june, and paid taxes and charges, and lodged the balance into a fixed saving account with a different group, this ends in a little under 3 months but this is my rainy day money, and i wont be touching it.

I own my own home, mortgage free since early last year, (thanks to over paying it).

what im saying here, is that if i cant get credit in the current climate, i dont know who can..


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## UFC (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> I dont have a debt problem thank you very much!


 
If I had 16k spread over a credit card, over draft, and 2 loans I would think I had a debt problem, nevermind a serious money mangement problem.

I most definitely would not have your casual attitude regarding adding another 10k of debt to the existing pile...

Not sure you're going to win anyone over to your way of thinking.


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## chlipps (14 Feb 2010)

*Re: Good credit hist & salary:refused restructure loan to clear cc bal OD and other l*

If I knew you had a rainy day fund and also owned your own house paid in full then I would have responded differently. How much funds in your rainy day fund? >10k?... If >10k then does the bank know you are mortgage free and have the rainy day fund?


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## Buddyg (14 Feb 2010)

*Re: Good credit hist & salary:refused restructure loan to clear cc bal OD and other l*

Restructure? You are trying to buy a new car. How about selling your car and buying a 5K runabout, saving yourself thousands.


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## WaterSprite (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> what im saying here, is that if i cant get credit in the current climate, i dont know who can..



In fairness, what you originally asked for were people's opinions of your situation.  The opinions expressed have been fairly clear.

At some stage, the bank has to ask why a customer needs yet another sizable loan. €26k in personal unsecured debt is big and I can understand their reluctance to extend this further.   

If you view the purchase of the car (at €10k) as a necessity, then use your rainy day money to fund that purchase.  If it saves you €1800-odd a year, then you'll have replenished that amount in less than 6 years.

Take the consolidation (the offer may not be open forever).  If you are dead-set on getting another loan, then apply to another bank, or the CU.


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## allthedoyles (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> what im saying here, is that if i can't get credit in the current climate, i dont know who can..


 
Bank of Ireland claim they are saying YES to 100 mortgages a day .

Just saw the advert at my local ATM .


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## moneycheck (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



WaterSprite said:


> In fairness, what you originally asked for were people's opinions of your situation.  The opinions expressed have been fairly clear.
> 
> At some stage, the bank has to ask why a customer needs yet another sizable loan. €26k in personal unsecured debt is big and I can understand their reluctance to extend this further.
> 
> ...



my main gripe is that having no mortgage,  and having my rainy day fund, and also having a good monthly income,  the back still said no.. 

the rainy day fund is quite sizeable, just under 150k, i locked it away and its due to be released soon, but it wasnt on a great interest rate, took the best i could at the time..

i had planned to clear all these, when i   was able to use my fund, and then lock in again for another period of time..


i am very tempted to when its released to  close all accounts with the bank and bank elsewhere.


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## WaterSprite (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> i am very tempted to when its released to  close all accounts with the bank and bank elsewhere.



Well that's the most practical thing you can do to express your dissatisfaction & if you are not happy with them, then more power to you. If it's one of the big two in Ireland, then you are also more likely to get better rates for deposit/fixed term elsewhere.

It's guaranteed they will be on to you once you clear your accounts - it's a perversely pleasurable experience that I had the opportunity to savour myself.  AIB refused me a mortgage (probably rightly, but they weren't the nicest about it; I was approved elsewhere) and, when they saw my 40% LTV portion of the house price enter and leave my AIB account as swiftly, they were on to me in a flash enquiring if they could do anything for me.  Mar dhea.  I didn't close all of my accounts with them so they call me annually asking how I'm doing and I never let the chance slip by to remind them that they didn't allow me to open a US dollar account and they didn't approve my mortgage.

You are in the happy position to let your feet (or money!) do the walking.


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## moneycheck (14 Feb 2010)

*Re: good credit history & Salary - refused loan*



WaterSprite said:


> Well that's the most practical thing you can do to express your dissatisfaction & if you are not happy with them, then more power to you. If it's one of the big two in Ireland, then you are also more likely to get better rates for deposit/fixed term elsewhere.
> 
> It's guaranteed they will be on to you once you clear your accounts - it's a perversely pleasurable experience that I had the opportunity to savour myself.  AIB refused me a mortgage (probably rightly, but they weren't the nicest about it; I was approved elsewhere) and, when they saw my 40% LTV portion of the house price enter and leave my AIB account as swiftly, they were on to me in a flash enquiring if they could do anything for me.  Mar dhea.  I didn't close all of my accounts with them so they call me annually asking how I'm doing and I never let the chance slip by to remind them that they didn't allow me to open a US dollar account and they didn't approve my mortgage.
> 
> You are in the happy position to let your feet (or money!) do the walking.



just spotted a few  ideas, in today sunday times, ebs and others are touting for deposit business, and permanent tsb are doing deals on current accounts etc.. must check this out further.

yes its one of the big two, whom all my banking has gone through for the last 15 years.  cheques were cleared immediately into my account ,  didnt matter what bank they were drawn from , which was handy.

what is widely mentioned in the media, banks are not lending, it appears to be correct or not at the extent they were before, no matter what your status is with the bank, and that is what is killing small business.

i have the date marked on my calendar, already, thats it im finished with them, lodge the cash, pay what they are owed, and move it out quick as a flash, also will stop my salary going in there too. fcuk them.

 i was only in the branch  there last week and they were trying to flog me some investment product and insurance , they were trying to book me in for an appointment and all... i said , lets sort the loan out first... phew thank god for that.


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## Noor77 (15 Feb 2010)

*Re: good credit history & Salary - refused loan*



UFC said:


> If I had 16k spread over a credit card, over draft, and 2 loans I would think I had a debt problem, nevermind a serious money mangement problem.
> 
> I most definitely would not have your casual attitude regarding adding another 10k of debt to the existing pile...


 
Ditto


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## Bronte (15 Feb 2010)

*Re: good credit history & Salary - refused loan*



moneycheck said:


> I dont have a debt problem thank you very much!.


 
For what it's worth I don't think you have a debt problem, what you have is a money management problem.  This you need to address.


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## amgd28 (15 Feb 2010)

*Re: good credit history & Salary - refused loan*



Bronte said:


> For what it's worth I don't think you have a debt problem, what you have is a money management problem.  This you need to address.



I fail to see how the OP has a money management problem when he has successfully cleared his mortgage, has 150K on deposit and a net salary of 3.5K per month and a debt exposure of 16k. If that is evidence of a money management problem, I'd love to have the same problem!

OP - I recommend you wait until you can access your savings, clear your 16k (and buy an efficient car if desired/needed) and continue building up your next egg with the payments you would otherwise be making on the debts described.


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## Bronte (15 Feb 2010)

*Re: good credit history & Salary - refused loan*



amgd28 said:


> I fail to see how the OP has a money management problem when he has successfully cleared his mortgage, has 150K on deposit and a net salary of 3.5K per month and a debt exposure of 16k. If that is evidence of a money management problem, I'd love to have the same problem!
> .


 
So someone who has two loans, credit card debt and needs an overdraft while sitting on 150K in savings with no mortgage (incidentally generally the cheapest type of debt which also has tax relief) and still considering borrowing 10K at a high rate of interest for a car doesn't have a money management problem?  Yes the debt is small in relation to the assets/savings but the problem is the debt makes no sense.  Hence not a debt issue but a money management one.


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## moneycheck (15 Feb 2010)

*Re: good credit history & Salary - refused loan*



Bronte said:


> So someone who has two loans, credit card debt and needs an overdraft while sitting on 150K in savings with no mortgage (incidentally generally the cheapest type of debt which also has tax relief) and still considering borrowing 10K at a high rate of interest for a car doesn't have a money management problem?  Yes the debt is small in relation to the assets/savings but the problem is the debt makes no sense.  Hence not a debt issue but a money management one.



a lot of things dont make sense!! look at FF.

if you go to a credit union they prefer you to keep your savings and borrow against them. also with my salary i can pay the loans back faster anyways.


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## chlipps (15 Feb 2010)

*Re: Good credit hist & salary:refused restructure loan to clear cc bal OD and other l*

Moneycheck.... You do not have any problem at all.... pity you hadnt mentioned the no mortgage and massive rainy day fund in your opening post... as the others have recommended, clear the debts and try get you funds into the highest possible interest savings account... this may mean drip feeding money into the ebd regular saver  and similar to get best possible interest rate return. However, you are paying considerable interest for small loans and probably is much higher than what you are gaining on the large rainy day fund. So clear all debts and overdrafts.. I'm with PTSB and find them very efficient for current account and more important no fees. Best of luck


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