# Personal loan declined



## PaulaBubu (5 Jan 2016)

Hi there, 

Have a quick question. I was recently declined from a personal loan from Bank of Ireland. Have been with them for a while now, as a student and now as a working employee. 

I was interested in a 4000 loan, for 2 years to get a new car. Monthly payments would have been 170euro/month.

Some of my details are: 
24 yo 
working for 1 hear and a half in permanent role in big IT Multinational 
Role: Business development, sales, to be promoted in 2 months 
Salary: varies very little, comes to around 2.5k a month, soon to increase 
Had a savings a/c until recently with them, took all I had out in Dec to send to my parents as they were struggling a bit so have nothing there at the moment 
Some expenses include: rent, car insurance, upc, bills, and other small things amounting to about 1.1k a month 
Missed a couple of payments (2 I think) on my credit card (from work) mainly because the work did not pay me back in time to pay the credit card company which is Bank of America so not even here in Ireland. 

My question right now is what can I do to turn this around. The car was a promotion gift for myself so no biggie (although disappointing) but I do want to try later in the year if I can't save all the money. Plus I'd like a mortgage in the future and don't want to go back and forth with the banks. Should I stay with them or move to another bank? Any suggestions as to what makes a good profile for getting a loan? Any input would be greatly appreciated!


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## Monbretia (5 Jan 2016)

Have you a credit union account?  If not open one, much better chance of getting a small car loan in a few months from them.   That will give you the advantage of having a credit rating too when you are looking for more lending.


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## Gerry Canning (6 Jan 2016)

Paula Buba,

Do an ICB (irishcreditbureau) check online on yourself.
If you missed 2+ payments on Credit Card that will show as 2 down ie a blip on your credit history and it IS trouble.
Few Banks will lend on seeing 2+ down on any credit reference.

From your post ,you did not realise the future finance implications of not paying Credit Card on time.
Bank also noticed you had drained your savings , they would not know you were helping parents. From their view your helping (even parents) makes you riskier ! 
You have a job, prospects look good (though I worry when you say not paid on time) , so from now on ,always ensure your financial commitments are up to date.

Get a note from employer that salary was slow for a couple of months and reapply to Bank.

Simply Banks do not like personal loans , because they have no security, they also arn,t too enamoured over 2nd hand cars.

No great point in changing Banks (all have proven to be incompetent) but you still need one.

As per Monbretia, Open Credit union account and put fixed amount into it each month and do not touch it , in that way, in time you will show good savings and savings ability and will have the same effect as good Credit history.

Hope this helps.


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## Monbretia (6 Jan 2016)

Exactly as Gerry says banks do not like personal loans and I believe computer is heavily weighted to saying 'no' to these applications.  Everything could be perfect and the computer can still say no, gone are the days when a person will actually look at the application and make a decision except in the credit unions for however long that lasts!


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## Bronte (6 Jan 2016)

PaulaBubu said:


> Any input would be greatly appreciated!



Welcome to AAM Paula.

Not paying your CC on time is a no no.  You aren't even sure how many times you were late.  Were work late paying your expenses or were you late submitting them? If your workplace is at fault they should pay the interest.  Does your workplace not have a system in place to advance the monies in circumstances where the employee isn't able to cover it.

If they don't then you should ensure you have enough in your account to cover it so it doesn't ever happen again.  Being blaise about such things is the rocky road in my experience.

Why do you need a car?  Have you asked the car dealer for a car loan.  Could you ask the bank for a car loan instead of a personal loan.

What happens your excess income over expenditure.  Wouldn't you be better off saving for the car instead of borrowing.  Was the car to cost 4K?

To be the ideal loan candidate you should have no missed payments, a history of savings, ability to repay, permanent job and a history of credit.

What was the interest rate on the loan going to be?

While I can understand you helping out your parents you should ideally have a minimum 3 months salary saved that you do not touch.


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