# Bank Loan refusal. Please Help



## catm (23 Nov 2005)

Hi, I've recently applied through many financial institutions for finance of €6000 for the purchase of a car. I've had refusal because of repayment problems that are on my ICB report dating back approx 4 years when I had repayment problems on a loan following an accident which left me unable to work for about 8 months. I got onto BOI to ask if they could repair my ICB and they said there was no way they could do this anymore.  Does anyone know of any place I could go for finance even if it was a high risk lender. The only way for me to repair my ICB is to borrow again and repay successfully. I need the car to use for my job.  My employer is financing it through a car allowance so technically the car won't cost me anything. I earn approx €46k/annum. My car allowance would add about another €10k onto that. I've just had bad luck in the past with my loan and really want to rectify it.  Can anyone tell me where I could possibly get approval. Credit union is out as I don't save regulary there. Please help asap.


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## ClubMan (23 Nov 2005)

catm said:
			
		

> I've had refusal because of repayment problems that are on my ICB report dating back approx 4 years when I had repayment problems on a loan ...
> 
> The only way for me to repair my ICB is to borrow again and repay successfully.


 This is not correct. If the problems from four years ago have been settled (e.g. you cleared the loan albeit after missing repayments with the latter noted on your _ICB _records) then this issue will drop off your records after five years. However if there is still money outstanding on that loan and the matter has not been settled then it will probably remain on your records until you sort it out. What is the status of the loan with which you had problems meeting the repayments? Did you get a copy of your ICB file to check precisely what was recorded?



> Can anyone tell me where I could possibly get approval. Credit union is out as I don't save regulary there. Please help asap.


 Some lenders specialise in offering loans to borrowers with credit history problems (e.g. _GE Capital _or some affiliated company I think?) but they normally charge a premium because of the additional risk such borrowers represent to them.


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## catm (23 Nov 2005)

I have my ICB report in front of me.  The items in question are all paid in full and shown as C for cleared now.  The loan was cleared complety in OCT 03.  I've tried GE Capital.  I don't mind paying the high interest so long as I can get a loan.  

Thanks


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## ClubMan (23 Nov 2005)

catm said:
			
		

> I have my ICB report in front of me. The items in question are all paid in full and shown as C for cleared now.


So your record will be clear by default in October 2008?



> I've tried GE Capital.


And...?



> I don't mind paying the high interest so long as I can get a loan.


I think that there are other lenders who specialise in offering loans to borrowers with credit history/rating problems. Can't think of them off-hand though. You might find some recommendations if you search this forum.


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## catm (23 Nov 2005)

I got refused to GE Money.  I really can't wait until 0ct 08. I want to get the 6K loan which more than likely I can clear in less than 12 months. At least this will help my ICB.  I had problems getting a credit card from Tesco about 6 months ago but got it after appealing their decision.  I even tried using a guarantor with AIB and a couple of other banks. How do I search this forum for possible lenders. I was thinking of using Citi Financial but there interest rates are scandelous. They may have to be a last resort.

Your advice is really appreciated.


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## ClubMan (23 Nov 2005)

Can you borrow from a family member? _CitiFinancial_ rates are shocking alright. Could you get a €6K credit card limit and have your employer repay the money?

Try .


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## Bank Manager (23 Nov 2005)

Given that you had the initial problem with BOI and you have since cleared the account with them, have you asked them for the loan, given that they will be aware of your history albeit that you had some problems in the past.


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## NiallA (23 Nov 2005)

Apparently you can send a letter explaining the reason for the bad credit history to the ICB, and ask that it is put on your file.  At least then, it is on the record when anyone does a credit search.
Another thing, CAr loans in BOI are approved centrally.  I applied to them a number of years ago for a car loan, and was refused as i was considered a bad risk (temporary employment), however the local bank manager could approve a personal loan himself, which i used to buy my car.  So i still got a loan from BOI after being refused a car loan from them.  It might be worth a try.
Best of luck anyway.


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## royrogers (23 Nov 2005)

Not sure, but this maybe of interest to you. 

http://www.ihatedebt.com/AlertsandScams.html


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## RainyDay (24 Nov 2005)

Do try your local credit union anyway - Regardless of your lack of savings history, they may be more symphathetic.


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## demoivre (24 Nov 2005)

Try and get a persoanl loan from your local bank, (they would have autonomy over loan decisions of that size)  ie the one in to which your salary is paid or lodged. Explain that you had a problem in the past and why you had it - if you are on the straight and narrow now they might be able to help you. Is there any way you can get a guarantor - that would strengthen your position.


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## ClubMan (24 Nov 2005)

demoivre said:
			
		

> Is there any way you can get a guarantor - that would strengthen your position.



See above:


			
				catm said:
			
		

> I even tried using a guarantor with AIB and a couple of other banks.


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## Thrifty (24 Nov 2005)

I think you should definitely approach your credit Union. They consider a number of things such as your links to the community, how long you have been with them, did you ever borrow before etc not just whether you are a regular saver. It sounds like you have done alot of work researching and trying to get a loan from Banks and other financial institutions but have discarded the Credit Union option maybe too quickly. I think its worth a try. they are not on the ICB (yet) and have their own criteria for loans. Also if you are in the lucky position of being able to pay back lump sums or extra as well as the agreed payments you will save on the interest as the credit union charges interest on the amount outstanding whereas with some other credit providers interest is worked out in advance and is fixed. Even where a rebate of interest is given the calculation for it seems to give you a lower amount back that if interest is calaulated daily /weekly etc.


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## Plywood (24 Nov 2005)

NiallA said:
			
		

> CAr loans in BOI are approved centrally. I applied to them a number of years ago for a car loan, and was refused as i was considered a bad risk (temporary employment), however the local bank manager could approve a personal loan himself, which i used to buy my car. So i still got a loan from BOI after being refused a car loan from them. It might be worth a try.


 
And that is exactly why Branch Managers can no longer approve personal loans - it has all been centralised because they were relying on the Bankers nose method which doesn't work anymore - it did in the old days.


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## ClubMan (24 Nov 2005)

Thrifty said:
			
		

> they are not on the ICB (yet)


Some are and more are planning to join.


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