Applying for loan advice

G

Gilead08

Registered User
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Hi

I am new to posting here. Hope someone can give me badly needed advise.

My car is currently give me serious trouble and was thinking of applying for a personal loan form AIB to repalce it. In the current economic climate and the state of my personal finance i am a bit worried that I am wasting my time. my current finances are as follows.

Origianl personal loan (Car) from AIB :€3500 (2year) €200 remaing (will be paid off 3-4 months early)(first and only loan so far).
Current account overdraft: €700
Credit card: €500
Monthly income: €2000
no savings worth mentioning.

I max out both my overdraft and credit card by the end of each month but they are always payed back in full before the begining of the next.

What would be peoples opinion on the chances of securing a personal loan of €5000 for a car?
 
Gilead08 said:
I max out both my overdraft and credit card by the end of each month but they are always payed back in full before the begining of the next.

What would be peoples opinion on the chances of securing a personal loan of €5000 for a car?
Click to expand...

I don't know if 5K is a lot for a second hand car, but you have a good history of paying back a loan already so you should be ok there.

It is not good that you have an overdraft as this means you are not budgeting correctly. Plus this costs you. If you are paying no interest on your credit card but repaying it each month, cannot see anything wrong with that. But what if you had an unforseen expense, and were already maxed out, what would you do?
 
Most banks use credit scoring models for such loans, based on what you have provided which already includes a satisfactory prior loan then you should be fine, owning a property and having a job are also important measures but I note you are meeting your committments so you must be fine as regards a regular income source , go for it.
 
Thanks for the replies. Unforseen expenses have been a problem the last few months (e.g. a banger of a car). However, i definatly need to budget more efficiently as any further large expenses would put me in trouble.

My plan, if i was to get a loan, would be to pay off my overdraft with the proceeds from the sale of my old car. This would hopefully put me back on track and keep me out of my overdraft.

I am very lucky to have a secure job but i do not own any property. Thanks angain for the replies as they have given me some hope.
 
You'll be fine, suggest you open a credit union account and lodge small regular amounts. Credit Unions are community based lenders and great for the smaller loans and getting you access to quick cash to help change your car in an emergency, a good way to look at it would be say you built up €1000 over time then you'd be good for a multiple of that as a loan..easier than the Bank..
 
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