Applying for personal loan - how's my credit rating

P

Partizan

Guest
Hi guys,

I'm new to the forum so I have a query. I'm at the moment about to apply for a personal loan for a holiday. I plan to borrow €2k and pay it off over a 12 month period at instalments of €174 per month. I had 2 previous loans one taken out in 2007 and the other in February 2008 which totaled nearly €8k. I merged both loans and now have only around €2k left and have a further 2.5 years to pay off. I plan to pay it off even before then. I have only missed 2 payments and that was in 2008 when I was unemployed but I got them sorted out. I also have a credit card with a €2k limit but I am well within the limit with €1,100 spent on it and paying off circa 400 a month on it. I'm in a full time job and I earn approx €600 pw. I am way ahead of both loan and credit card payments.

On the basis of this will the bank give me the loan or will they say pay off your existing loan first? Is my credit rating good? I never availed of an overdraft facility btw.
 
You'll have to apply to the ICB for a credit report. If there is a negative entry about the missed payments, which is quite likely, then I doubt that a bank will loan you any money at the moment.
 
I recently transferred my CC balance to a 0% interest company. I could also transfer some money up to my credit limit to my current account. The deal is for 10 months interest free including any money that I transferred to my current account. Has to be paid back in 10 months though. I didn't take the offer but it might be an idea for you if you could pay in back in 10 months instead of 12. And its interest free. Banks are charging anything up to 13% on a loan at the moment.
 
Hi there Partizan, I really hope you dont mind me saying this. Do you really need to take out a loan. You already have a loan and a credit card bill. You have already experienced unemployment where by you missed payments.

Maybe I am a wee bit conservative, but would you not try and build up savings instead of building up debt...
 
Hi pinkyBear,

I dont owe much but i'm not building up massive amounts of debt here. It is well within my reach to pay off a short term loan. What do you suggest I do, pay off the cc first in its entirety or my existing loan. I am well ahead of all payments. which would boost my credit rating?
 
Hi Partizan, I must admit I'm with pinkybear there - I think holidays should be saved up for since they are a luxury and extra disposable income should fund them not loans. Personally I save for my holidays not borrow. But if you have no fears of future unemployment again then doubledeb has a good suggestion - try to get a new credit card 0% balance transfer and a 3k limit, transfer the €1k already on your cc and use the rest of the limit for the hol and repay it 0% interest before the term is up.
 
Partizan said:
Hi pinkyBear,

I dont owe much but i'm not building up massive amounts of debt here. It is well within my reach to pay off a short term loan. What do you suggest I do, pay off the cc first in its entirety or my existing loan. I am well ahead of all payments. which would boost my credit rating?
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In your original post you mentioned that you missed payments previously when you unemployed. If you take on more debt now you will be in more trouble if you lost your job again. I agree with Pinky Bear, pay off your debts then save for a holiday.
The fact that you are ahead of payments will have no impact on your credit rating, especially not if the missed payments are recorded on your credit report.
 
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