Refused a top up on my loan - strange reason

irish life

I have to get dental work done which is costing around €800. Because I'm saving for an expensive holiday in June I have to get a loan to pay for it.

I got a loan about 2 years ago with AIB for €2k when I finished college. I paid it off every week. Then I topped it up last June by €700 for a family wedding in Spain. That was given to me straight there and then and I didn't have to make my first repayment for 2 months.

I have €690 left on the loan. I pay off €168 a month and always pay. I get paid on the 28th and the loan is usually taken out on the 30th.

I earn €23k a year and am in this job just over a year. I still live with my mam and give her €300 a month. I started putting €400 a month into savings account for holiday in January and have €1200 in that.

I went into the bank on Wednesday and explained all that. I had intended on asking for a loan freeze for 2 months until I got back from America to save more. Then the dentist thing came up and I needed both. He said they don't usually offer to top up and freeze a loan (which I think is rubbish since it's basically a new loan, and I was asked last year when I'd like to make my first repayment).

Anyway, he asked how long I'd like it repaid over and I told him I'm fine paying the €150-160 a month so whatever period that is over. He offered me €76 a month over 2 years which I said was ok. he said he'd have to ring me back about it.

I rang them today and was told it was turned down. I asked the reason and she said it was because I didn't seem to have money left over in my account come the end of the month. I told her I have a savings account with AIB with €1,200 in it. She actually sounded like she hadn't a clue why it was refused.
She advised me to use my holiday savings to get my teeth done and if I keep up the way I'm saving €400 for the next 3 months there's a good chance that I would be accepted.

Anyway, I need a loan to get my teeth done and I'm not cancelling my holiday or going over with €800 less than planned.

First question, does anyone else find it bewildering that I was turned down since I'm paying every month as it is?
Secondly, what are my options now to get this €800? Credit cards, etc.

Cheers!

Toots

My advice would be to get back on to the branch and ask them to appeal the loan decision. If the appeal is declined, then maybe apply somewhere else and see what they have to say.

T Corolla

Why would you borrow more money when you already have the money
I suggest you postpone your holiday and get your dental work completed
The dental work will be for life and you can go on holiday whenever you like

T Corolla

T Corolla wrote: »

Why would you borrow more money when you already have the money
I suggest you postpone your holiday and get your dental work completed
The dental work will be for life and you can go on holiday whenever you like

least helpful advice ever.

mikemac

irish life wrote: »

I rang them today and was told it was turned down. I asked the reason and she said it was because I didn't seem to have money left over in my account come the end of the month. I told her I have a savings account with AIB with €1,200 in it. She actually sounded like she hadn't a clue why it was refused.

Just go back in and ask them to review it again.
Shouldn't be a problem. They must have missed your savings account
Yes, mistakes do happen but it's no big deal, they can look at this again next week

MarkR

If you have that little left on your loan, pay it off this month instead of putting 400 into savings. Once your loan is cleared then you can show to your bank that you've cleared that, and could use the money you had been using to pay off the old loan on a new loan.

Not a huge point in saving in one account and having a load elsewhere. You have months to save. Suppose it depends on how much cash you need for the holiday, but definitely try to clear the loan first.

irish life

T Corolla wrote: »

Why would you borrow more money when you already have the money
I suggest you postpone your holiday and get your dental work completed
The dental work will be for life and you can go on holiday whenever you like

There's over 20 of us going over for a week in Vegas and my brother who's flying from Sydney and haven't seen him in a couple of years. Then the 2 of us are doing another 2 weeks travelling around America. It's not something I can re-arrange.

MarkR wrote: »

If you have that little left on your loan, pay it off this month instead of putting 400 into savings. Once your loan is cleared then you can show to your bank that you've cleared that, and could use the money you had been using to pay off the old loan on a new loan.

I see what you mean but then I'd be afraid they wouldn't give me a loan at all.

I do think they missed my savings account so I'll try to get an hour off work on Monday and go back into the bank. At least this time my face won't be numb so I'll be able to talk properly.

Thanks for any advise.

T Corolla

MarkR wrote: »

If you have that little left on your loan, pay it off this month instead of putting 400 into savings. Once your loan is cleared then you can show to your bank that you've cleared that, and could use the money you had been using to pay off the old loan on a new loan.

Not a huge point in saving in one account and having a load elsewhere. You have months to save. Suppose it depends on how much cash you need for the holiday, but definitely try to clear the loan first.

Good advise a little better than mine