Applying for personal finance...bad credit.

S

Stu72

Guest
Hi folks,

I'm currently on the lookout for a (small) personal loan but I don't have very good credit.
I took out a loan with BOI in 2005 & missed 6 payments - as there was insufficient funds in my account to repay because a few months after I received the loan I was out of work.
As far as i'm aware I haven't missed any payments since the last time - August 2006.

However, even though i have kept up regular payments I have heard that I would still have a bad credit rating.

I applied for a loan with my bank PTSB & Blue Cube - early last year but I was refused.

Are there any lenders that would approve me a loan as I don't want to keep applying & getting refused (loan applications go on your credit rating as far as I'm aware??).
 
Stu72 said:
As far as i'm aware I haven't missed any payments since the last time - August 2006.
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"As far as you're aware"? How come you don't know for sure?
However, even though i have kept up regular payments I have heard that I would still have a bad credit rating.
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You can check your ICB records to see if the missed payments are logged. They most likely are. Other lenders will look at these records when you apply for credit and draw their own conclusions about your credit rating.

Have you cleared the BoI loan? Do you have any other debts?
I applied for a loan with my bank PTSB & Blue Cube - early last year but I was refused.
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Probably because of the missed payments on the BoI loan. Note that missed payments will remain on your records for up to 5 years after which they drop off.
Are there any lenders that would approve me a loan as I don't want to keep applying & getting refused (loan applications go on your credit rating as far as I'm aware??).
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Loan applications lead to credit checks which get logged. What others infer from these is up to them. Are you sure that you can afford a loan? If not then this rather than credit history could be your problem. There are lots of other lenders out there including sub-prime lenders who will lend to those with poor credit histories/records but often at a higher than normal rate and they can be very strict in foreclosing if you miss payments.
 

Well I haven't got my loan account statement on hand so I can't give an answer for definite on when the last time I missed a payment but Aug 2006 sounds about right.

No I'm still clearing the BOI loan - I have an SO from my PTSB account and a payment goes off every month.
Other than that loan & my overdraft I have no other debt.

I didn't know missed payments stay on my record for 5 years. I'm surprised to hear that.

Yes, I would be able to afford a loan. My monthly outgoings add up to €550 (rent..well, I live at home but pay my folks every month & my loan)
 
Stu72 said:
No I'm still clearing the BOI loan - I have an SO from my PTSB account and a payment goes off every month.
Other than that loan & my overdraft I have no other debt.
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So any application for more credit will be assessed against a background of you having missed payments in the recent past (assuming that they are logged in our ICB records) and the fact that you have existing outstanding debts. How much debt do you have, at what interest rates and what is your income? Do you have any savings? Why are you living off credit - e.g. what are your budgeting/expenditure patterns that seem to be causing you to live beyond your means?
I didn't know missed payments stay on my record for 5 years. I'm surprised to hear that.
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See the ICB site for more on your records.
 

Well going by my 2 loan applications being refused I would assume that my missed payments are logged. I'll apply to the ICB for a report though.

My income after tax p.m is approx 1666.
I don't have any savings, but have set up a SO for some funds to go into a savings account from 25th of this month, when I get paid.

I would put having to use up my overdraft each month as a main reason for living beyond my means - My overdraft isn't much - it's 500.

So.. Income: 1600(approx) - 500(OD) - 550(Rent & Loan) = 550 for the month - It's not much to live off, which is why I dip into my OD.

I have enquired to my bank about getting my OD reduced each month & clearing it in a few months.
 
What rates are charged on the loan and O/D?

Based on the info that you've posted I think you would be mad to take out more loans now and a lender would be mad to advance further credit to you.

You need to deal with your existing debts and address the budgeting (or lack of) and spending patterns that are leading you to live beyond your means. Have you read the debt management and budgeting key posts/tips? And considered contacting MABS?

Note that 1,600 - 500 - 550 = 550 not 600!
 

I'd have to check the rates that are being charged.

I'll give them a read & try get my budgeting in shape although I find it hard to stick with a budget, I'd have it worked out on paper but then when I get paid it goes out the window..

I have considered contacting them but it got no further than a consideration.

Would they be worthwhile contacting??
 
Stu72 said:
I'll give them a read & try get my budgeting in shape although I find it hard to stick with a budget, I'd have it worked out on paper but then when I get paid it goes out the window..
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Sounds like at least part of your problem so!
I have considered contacting them but it got no further than a consideration.

Would they be worthwhile contacting??
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MABS are the first port of call if you are having trouble managing your money/debts or you just want advice on how to do things better in my opinion although I have no first hand experience with them.
 
ClubMan said:
MABS are the first port of call if you are having trouble managing your money/debts or you just want advice on how to do things better.
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Thanks for the advice.

One last question, though.

Would I have to visit them in person or do they deal with you over the phone/email? As it's sometimes difficult getting time off work.
 
Stu72 said:
One last question, though.

Would I have to visit them in person or do they deal with you over the phone/email? As it's sometimes difficult getting time off work.
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Did you look at their website?!
 
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