Should I bother making a loan application?

[keepon]

I have an imperfect credit history, due to a financially rough few years that coincided with a career change and some other issues. I've never defaulted, but I've had some late payments as things got on top of me. About a year ago I was summarily refused credit by PTSB, with whom I had banked for decades, and by GE.

Recently, I am in a much better situation, and I feel I have turned a corner. I have a good income that stacks up well against monthly outgoings and is secure in the long term. I have a quite high value home, with relatively little borrowing against it. I am considering seeking credit again, in order to kill off two credit cards, to buy a modest car, and to do one or two other things.

I am wondering:

a) Are there particular lenders who are more likely to do business in these circumstances, and perhaps meet me to make a more informed judgement, rather than rely on a database reflex?

b) Does a rejected application go on my credit record and make things worse?

c) Am I better off applying for a larger loan, or does it make no difference?
Any advice greatly appreciated.

 

[oysterman]

I have a quite high value home, with relatively little borrowing against it.

Why not informally approach your mortgage provider?

Otherwise you may well have to let time run its course on your credit history. As far as I know 5 years is the magic time period that needs to elapse. How long since your last irregularity?

 

[Sue Ellen]

Just so that you know what details these financial institutions have on you it might be worth your while to get a copy of your credit rating. You can obtain same from the [broken link removed].

 

[keepon]

I'd say it's roughly a year since the bank wrote to me about a missed payment. Not serious in itself, but I'd have had a fair scattering of them, due more to disorganization and poor planning than ability to pay.
I could look at my ICB report, but it would tell me what I already know. What I'm afraid of, though, is that seeking credit now might make matters worse, if the institution registers declined applications.

 

[nelly]

if it costs you nothing then why not make a loan application or a mortgage top-up application? even if you do ger refused at least you know, if you don't apply you will never be sure you.
Well done on getting yourself into the black again.

 

[liteweight]

Don't presume you know what's on your ICB report. Make a request for the information, it costs a few euro, not much, and at least you'll know for sure what has been reported. Sometimes the bank you've been dealing with for years is not the best place to go. Ridiculous, I know but they sometimes treat you worse than a stranger if you have gone through a bad time.

Go to a mortgage broker as a top up will be your cheapest way to borrow money. If you have your ICB report then you'll know what circumstances you should explain and no more. Also, with a mortgage broker, you can ask him/her to run it by the lending agencies first. If s/he says a loan is not likely then you won't have been refused and it won't go on your record.

If all else fails, try saving for a while in your local credit union and seek a loan with them. Good luck.

 

[keepon]

Just applied for my ICB report.

I am reluctant to apply for a mortgage top-up because I did that about five years ago and because I presumably would lose my fixed rate.