Refused a loan...

M

misterfitz

Guest
Someone help me.

I was refused car finance from several establishments, but they all refused to say why. I have been steadily employed for over two and a half years and my wages pass through the bank. I have no history of bad credit, nor do i have any outstanding loans with anyone. I earn a mere €19,000p/a. Could this be the reason? I have only ever applied over the phone or via internet.

No1 will offer me finance. Can anyone help?
 
It could be because you have no loan history - I have a friend and that is what happened to him. Try the creedit union.

Were you applying for a loan in the bank you get paid in to???
 
Credit unions are loathe to loan to people who do not have a regular savings history. I was refused a loan with them, despite having half the loan value in savings and saving a few hundred once a month "because I wasn't saving on a more regular basis". I got the impression that if I'd saved 10 quid every week I would have had more chance of getting the loan than saving 500 once a month.

That's my experience anyway - but it's worth a shot I suppose. On the other hand, hubby was refused his first car loan in BOI and got one from his local credit union. Remember you can only borrow 4 times your savings from a CU as well.
 
Its paid into AIB on a regular basis. I dont have a credit history, but how do you get a credit history if no1 will give you a loan without one?
 
I know - its a catch 22, but what I have found with the CU, is that they will loan you what you have saved first of all, and when as you build up a history with them they will increase the size they will loan.

but how do you get a credit history if no1 will give you a loan without one
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What I would do - is take out a small loan - say €300, pay it off quicker than expected, once the bank see that you are making regular payments you will be ok.
 
Barley said:
Remember you can only borrow 4 times your savings from a CU as well.
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Thats a general rule of thumb but there are many expections once you are well know to the CU. You don't necesarily have to have any savings with them to take out a loan.
 
Correct me if in wrong but as far as i was aware the CU dont register with the ICB hence people using them to borrow the deposit for a house.

It is a catch 22 but my advise would be to try a bank for a small loan with perhaps a parent going guarentor, pay it back quickly and then try again.

I worked for a finance co and if a person had no credit history they would be refused regardless of what they earned.
 
Thrifty1 said:
Correct me if in wrong but as far as i was aware the CU dont register with the ICB hence people using them to borrow the deposit for a house.
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Ok so.. you are wrong! Some Credit Unions do register with the ICB. Also one of the many reasons you are requested to provide current account statements when applying for a loan or mortgage is to show the regular S/O or D/D payments (such as CU loan repayments).

OP, as already suggested I would actually talk to somebody in the Bank that you have your current account with as they may be able to give you a steer.
 
misterfitz said:
Someone help me.

I was refused car finance from several establishments, but they all refused to say why........ Can anyone help?
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They are not obliged to tell you why they refused you but you can still find out by requesting, under section 4 of the Data Protection Act, 1988 and 2003, a copy of all the information about you that they hold. See [broken link removed]
 
pinkyBear said:
What I would do - is take out a small loan - say €300, pay it off quicker than expected, once the bank see that you are making regular payments you will be ok.
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Ditto.

also i would question the taking out of a car loan. consider saving and buying an older car for cash.
 
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