car loan re finance queries....

[maxjam]

Hi all,

Im changing motors and need your help with this:

Bank who ive been with for 20 years wants to charge me 65euro documentation fee... is this correct or should i expect more of them?

Also, what exactly am I required to tell my bank over the phone about any accounts that I hold outside of there business? they asked me about other credit cards and savings etc....

 

[maxjam]

Also, should i reveal any credit union savings that i have?

 

[maxjam]

Shocked!!!

Ive been turned down as they feel that it would put me under undue pressure to pay back the new increased balance

I think I know why this is...

Ive a credit card with AIB and its maxed out at 1200 (yes one thousand two hundred) euro.

I religiously pay money off it each month, always more than minumum but some months over last year ive dipped into it again and let it go over its limit, so ive paid a number of overlimit fees. im talking like maybe 50 euro over limit, nothing more than that.

My current account is with them too as is the joint account that my mortgage comes out of. They can see that my current account is near zero at the end of each month, yet I never miss a payment anywhere, sky, bord gais, esb, mortgage, etc and we let the joint account build up as we deliberately overpay into it, all bills etc come out of the joint ac.

So Ive been declined based on affordability.... gutted.... wasnt even a flash car i was looking at my own car has its problems which will now cost me more in the long run.

Time to sort out finances a bit with regards to credit card.

question 1: how long will overlimit fees on my record prevent me from getting a loan!?
question 2: is it difficult to move to another credit card with 0% 6 month holiday on interest and clear off my AIB one or will these overlimit fees prevent it?
question 3: who is the best company to move to?
question 4: has anyone a scissors so I can slice up my card?

 

[samanthajane]

my little opinions:-

Q1) information stays on your credit report for 6 years.

Q2) i suppose the only difficulty is to apply to other places and see if you are accepted, but this will appear on your report that you have requested finances from the other companies, doesn't look great that you have several applications within a short period of time. I think they shouldn't be allowed to approve your transaction if you dont have enouh funds available. I once went over by 20c and i was charged, but after a few calls and some strongly put words, the over limit fee was removed.

Q3) find out what different companies are charging, some have 6 months some have 12 months interest free on balance transfers, but there is normally a fee invloved in this as well, it goes by the balance being transfered but there is always a min involved.

Q4) yes.

in answer to other things you said, there is no point not disclosing to places what other accounts/cards/loans that you have. All places will do a credit search on you before they make a decision so they will find this information out. The only place which this wont be revealed is the credit union ( now i remember a while ago there being talk about the credit union recording and sending information about your account ect ect weather that has happened or will be happening i have no idea )

You said you have credit union savings, do you have a loan with them as well? Maybe they would be better to approach for a loan. They would go more on what you save with them each week/month and if you save on a regualr basic with them.


About the €65 fee from the bank. I have never been charged a documentation fee from a bank for applying for a loan/creditcard ect. When i got my car finance i was charged but that wasn't from my bank. Maybe when it's for car finance they all do charge. But €65 seems about right, i think i remember paying around the same for mine.

 

[maxjam]

So if my if I pay off a chunk of my credit card and dont touch it (and lower the limit on it) and continue with this process each month lowering the amount AND limit, how long do you think it will be before I can apply for the same loan again?

 

[samanthajane]

How long is a piece of string??? Thats so hard to be able to give you an answer...but if it's afford ability of repaying that was the reason i dont see how 1200 on your credit card is the sole reason. Depending on what rate you are on the minimum payment each month is only approx 40-50 euro. I suspect that it has a few other things into the factor as well. You said your current account in usually around zero when mortgage/bills have been paid, to me even though you are not behind on any of your payments it would suggest that you are only just living within your means. Do you have any other accounts with them or another bank that you could try.

You could approach the another bank and say well this is out current account statement from AIB that covers all our bills/mortgage ect and we only ever put in what we need which is why the balance is around zero after all of these are paid. I do that myself, i have 1 account which only ever has the amount that is needed to pay the bills and then another account which is my money to spend on what ever i want.

I know you've been with them for 20 years but at the moment that doesn't really mean much with banks at the moment. Could you try the credit union like i suggested? As for when you can apply again that would depend on your banks policy, I dont bank with AIB myself and i've never actually had a loan from a bank, I went a few years ago to reschedual a loan i had with another company, who sugessted that i do it this way from the start, ( i needed 15k in 4 months time for home improvments, but their limit for first time customers was 10k, so i was told to apply for the 10k which would be approved and it was, and then in 3 months time apply for a top of of 5k ) and then when i did i was refused even though i was told i wouldn't be, there had been an error on their side, but even so they said i had to wait a minimum of another 3 months before i applied again.

If your car is going to cost that much to repair would you think about just buying another car to get you from A to B untill you do get the loan. I went from having a car on finance that was costng 470 euro a month, to a banger of a 98 fiesta, but i've had it nearly 5 months now and i've not put a penny into it so far ( fingers crossed ) it cost me 200 euro with an nct just done on it. Maybe a rust bucket lol but it starts each morning for me!!!