# need a car loan, bad credit rating



## stuck81 (31 Jan 2008)

i recently have been offered a great job, but have been told i need to have a good car, as i will be driving all over the country.

I have applied for car finance for €25,000 with my bank AIB and been refused, I was advised to try GE money but also have been turned down. I have have applied for a copy of my credit report from ICB and am waiting for it. I have been working for a year with my current employer on a salary of 40k. 

Is it easier to get approval on Hire purchase agreements from garages?


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## ClubMan (31 Jan 2008)

stuck81 said:


> Is it easier to get approval on Hire purchase agreements from garages?


Even if it is they may not be the best option - check out previous threads on car finance and _HP _specifically.


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## stuck81 (31 Jan 2008)

but if i can't get a personal loan what else can i do?
would it help if i had a guarantor?


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## ClubMan (31 Jan 2008)

What precisely do you mean by "good car" in your first post? Do you have some sort of car already? Would it do until you can settle in and get some money together? Remember that you could be given the heave-ho in the new job any time during the probationary period or first 12 months with no come back so it may be a risk to take on €25K debt right now especially with past issues with managing debt.


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## stuck81 (31 Jan 2008)

I need something reliable because of the considerable amount of driving i'll be doing. i've just been learning in a small car that won't be suitable. I suppose I don't really need to borrow so much, but i will need to get something soon.


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## ClubMan (31 Jan 2008)

An earlier post which had to be unapproved for a breach of the posting guideline suggested trying your local _Credit Union_.

Have you also tried a few other lenders other than just _AIB _and _GE_?


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## stuck81 (31 Jan 2008)

i've just been with my credit union a few months and the first loan is only equal to your shares so i've applied for that which is only 700 and will repay that over a couple of months second loan will be double so i was thinking to save €1000 a months for next 3 months and see if i can borrow €7400.
haven't applied anywhere elsewhere because i thought it would look bad on my credit report, thought i would check out which lender would be most likely to approve from you without doing further damage, or see what other options i have.


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## Banking2006 (31 Jan 2008)

Work colleague is member of credit union and has first loan equal to 3 times her shares. So i think CUs are more flexible these days. Obviously they check other commitments you have and look at ability to pay.

But my advice would be to at least talk to them and see.

I note GE charge typically 9-16% so you could end up on a high interest rate- credit unions can be typically 9%


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## stuck81 (1 Feb 2008)

I thought that too but i applied and they said first loan is equal to shares, so i was a bit surprised


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## ClubMan (1 Feb 2008)

See this post.


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