Running out of time to get credit approval.

[John_Doe]

Hi all,

I'm at my wits end at this stage over trying to get credit and I'm starting to lose sleep over it.

I'm 25 now and when I was 19 and in part time employment I stupidly accepted a credit card offer from Ulster Bank. I maxed it out over a year and then couldn't keep up the repayments so they sold the debt to a debt collecting agency. I took out a loan from the same bank as the credit card almost the same day as they sold the debt and paid it back in full to the bank.

I was made aware of the consequences and so didn't even attempt to get credit for a number of years.

Early last year thinking it was passed its sell by date I applied for a loan with Halifax which was accepted. I also got Finance around the same time on an expensive PC. They accepted even with the credit card on my ICB believe it or not.

I applied for a top up on my Halifax loan just before going on holidays in January for a used car and to pay for the holiday. I had no reason to believe I was still in any kind of bad credit at this stage. It was accepted in principal the day they announced their withdrawal from the Irish sector, it was still classed as New Business so it was declined on that basis. I actually received a letter first telling me it was approved in principal and the application could be continued with even though they were withdrawing from the market but when I called them they said it was sent in error!

So I went back to my own bank to apply for a loan and it was declined on the grounds that I missed a loan repayment. I know I've never ever missed a loan repayment so I went and got my ICB report for every address I've even stayed at and low and behold the only mark on it is the credit card which is scheduled for removal this June. I called my bank again and told them I couldn't find any missed payments and she asked me to fax in my copy of my ICB report. This appeal was also unsuccessful this time they used the reason of the closed credit card a/c.

I then went to BOI and applied for a new bank a/c with a loan of €5,000 with the intention of paying off the remainder of my current loan (1,600~), paying off the debt I'm now in over the holiday and a cheap used car. After deliberating for almost a week they told me they would only give me a loan if I first moved my accounts there for 6 months. My current car is on its last legs and I told this to the girl when I was applying so it's no good to me.

At this stage I called Ulster Bank and spoke to the manager and explained my case, she was surprised a student credit card was still causing me issues so she took the issue herself. A couple of days later she came back and said it wasn't a runner. I asked what if my parents went guarantor and she said that wouldn't be a problem. Again, three days later she came back and said even with a guarantor because I spend all of my money every month they said I don't have the capacity to repay a loan?!?! I'm a little disillusioned as to where the problem is with disposing of disposable income... shouldn't it be called something else if it's not to be disposed of?
I pay all of my bills on time and haven't had one declined direct debit or standing order. I like to deal in cash and withdraw large amounts infrequently to save from having to visit cash machines when I need money.

I make €40,000 before tax per year before overtime and get paid into my bank account. I’ve been in the same full time employment for almost 4 years. Am I really that big of a risk?

Anyway, this has been going on since the holiday in January, I've been borrowing from Peter to pay Paul since then believing the loan wasn't going to be a problem with small debts mounting as time passed. Currently I need €2,000 to pay overdue rent and get me to the 20th of the month. I've resigned myself to the fact I won't get a loan to consolidate with my original loan so now I'm just looking to stay in the red. I'll probably look at car finance once I can sort out my personal finances first but that's not important.

I was looking at the list of money lenders provided by the regulator and most only seem to offer a maximum of €500.

Any advice at this stage would be very appreciated.

Thanks,
JD

 

[z107]

I would suggest doing the money makeover thing.

You're on €40k at age 25 (which I think is fantastic money to be on) yet you seem to be riddled with debt.
What are you spending all that money on?

 

[tenchi-fan]

You're on €40k + overtime and you can't afford to pay last month's rent?
If they gave you a car loan and you were laid off tomorrow I think it would be the credit card all over again.

 

[Billo]

John,

My advice is to start saving.

You mention loan several times in your post but never mention saving.

 

[John_Doe]

I'm not really in any debt, outstanding to my name I have 1600 to Halifax which is taking care of itself and 1600 rent. I could conceivably do without all the little luxuries for a couple of months and clear my plate completely but it's not unmanagable so I don't see why I need to. The only reason last months rent went unpaid was because BOI sounded so certain I'd get the loan, I've just been biding my time waiting for it to come in. The holiday with the lads in Jan cost me a clean fortune!

Spending money is never a problem, I live in Dublin and tend to enjoy myself but never outside of my means until now. I look at my a/c once the bills are paid and tend to set that as my budget. I'm slowly but surely training myself not to do that and hope in a years time to be a regular saver so this can't happen again!

Edit: As for being laid off, I know I'm invaluable to my job who have been hiring the entire way through the recession, even if it were to come to that I know I'll find work in no time due to my sector and personal skill set.

 

[John_Doe]

John,

My advice is to start saving.

You mention loan several times in your post but never mention saving.

At the moment saving won't get me out of the hole I'm in. Saving is on the agenda but first things first!

 

[John_Doe]

I just read over the thread about cutting expenditure and some of the suggestions I've already started to implement. Bringing lunch to work is saving me €200 per month!!

 

[z107]

As for being laid off, I know I'm invaluable to my job who have been hiring the entire way through the recession, even if it were to come to that I know I'll find work in no time due to my sector and personal skill set.

Sounds like the bank won't give you a loan because they believe you are at capacity already - ie, that you need to spend all your income.

Off topic - what sector is it you're in? (Maybe I should reconsider my own career path!)

 

[John_Doe]

Sounds like the bank won't give you a loan because they believe you are at capacity already - ie, that you need to spend all your income.

Off topic - what sector is it you're in? (Maybe I should reconsider my own career path!)

It's funny you should mention that, BOI said they deduct rent, bills and standing orders from your income and that's the income they base the risk assesment on as one would expect, their request for me to change banks wasn't exceptional, just a pain. I find it strange that Ulster Bank consider all expenditure together. As bills come and go leisure spending changes to accomodate it, it's frustrating to have to reconsider that opinion but what we must.

I.T.

 

[Mongola]

You are going from bank to bank and this is leaving a trace on your ICB report, making it worse. If I were you I would stop trying to get new cards/loans. This is affecting you badly!

Edit: As for being laid off, I know I'm invaluable to my job who have been hiring the entire way through the recession, even if it were to come to that I know I'll find work in no time due to my sector and personal skill set.[/QUOTE]

Hopefully for you: you are right but I know many people who thought that they were invaluable to their job and also thought they would find work in their sector..in no time! Not being able to plan for the unexpected is also part of your problem!