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bank loans

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  • 18-01-2020 3:43pm
    #1
    ygolometsipe
    Registered Users Posts: 882 ✭✭✭


    Do you have to tell a bank *why* you want a bank loan.
    Say for example they offer you a car loan but you decide to just buy clothes?


    Why is the reason for the loan so important?


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    #2
    1o059k7ewrqj3n
    Closed Accounts Posts: 2,779 ✭✭✭1o059k7ewrqj3n


    Don't tell them it's because you want to visit Thailand and Vietnam OP, that will lead to more questions.

    Just say you want to buy a new car.


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    #3
    TuringBot47
    Registered Users Posts: 991 ✭✭✭TuringBot47


    ygolometsipe wrote: »
    Do you have to tell a bank *why* you want a bank loan.
    Say for example they offer you a car loan but you decide to just buy clothes?

    Why is the reason for the loan so important?

    If you want to p*ss the money away on clothes it shows you aren't very responsible with money.


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    #4
    EmmetSpiceland
    Registered Users Posts: 10,561 ✭✭✭✭EmmetSpiceland


    As long as they believe you can pay it back or put up some “collateral” they shouldn’t care too much.

    But, you would hope that if you told them you were going to “invest” it in Bitcoin they would withhold the loan.

    “It is not blood that makes you Irish but a willingness to be part of the Irish nation” - Thomas Davis



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    #5
    Capt'n Midnight
    Moderators, Recreation & Hobbies Moderators, Science, Health & Environment Moderators, Technology & Internet Moderators Posts: 90,827 Mod ✭✭✭✭Capt'n Midnight


    Just get an overdraft.

    Except in the UK HSBC are now charging 40%, Santander are slightly cheaper at 39.9%


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    #6
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    ygolometsipe wrote: »
    Do you have to tell a bank *why* you want a bank loan.
    Say for example they offer you a car loan but you decide to just buy clothes?


    Why is the reason for the loan so important?


    Because they love a good gossip.


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    #7
    caff
    Registered Users Posts: 954 ✭✭✭caff


    ygolometsipe wrote: »
    Do you have to tell a bank *why* you want a bank loan.
    Say for example they offer you a car loan but you decide to just buy clothes?


    Why is the reason for the loan so important?

    If it's a secured loan you have to tell them. Unsecured you don't. Car loan would be secured against the car, you miss payments they take the car. It's like a mortgage.


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    #8
    jonnny68
    Closed Accounts Posts: 3,670 ✭✭✭jonnny68


    why would anyone take out a bank loan, you'll end up being fleeced, the credit union is far better.


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    #9
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    jonnny68 wrote: »
    why would anyone take out a bank loan, you'll end up being fleeced, the credit union is far better.

    Not necessarily true. Credit unions are all independent when it comes to rates. Some offer cheaper, some more expensive. It really depends on what your local credit union offers.

    Likewise, it is about convenience. With AIB, for example, you can apply for the loan online and have the money in your account instantly. With Credit Unions, you typically have to go in in person ("time off work" for most people) and go through a slow bureaucratic process.

    As for the OP, the purpose of the loan is very important! Put it another way, if you even feel for a second you need to "lie" about the purpose, this should be an immediate red flag to yourself that you should not borrow a cent.


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    #10
    _Kaiser_
    Registered Users Posts: 28,724 ✭✭✭✭_Kaiser_


    dotsman wrote: »
    Not necessarily true. Credit unions are all independent when it comes to rates. Some offer cheaper, some more expensive. It really depends on what your local credit union offers.

    Likewise, it is about convenience. With AIB, for example, you can apply for the loan online and have the money in your account instantly. With Credit Unions, you typically have to go in in person ("time off work" for most people) and go through a slow bureaucratic process.

    As for the OP, the purpose of the loan is very important! Put it another way, if you even feel for a second you need to "lie" about the purpose, this should be an immediate red flag to yourself that you should not borrow a cent.

    I agree with the last line, but to be fair I think the Credit Unions have upped their game in recent times.

    I'm a late convert myself but did some consolidating with the local one last year and it was all done via email and posting off a few forms and statements. Didn't have to go into them at all.

    Was with AIB for years and the bureaucracy was immense and I always had to go into a local branch to sign paperwork


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    #11
    namloc1980
    Registered Users Posts: 18,090 ✭✭✭✭namloc1980


    _Kaiser_ wrote: »
    Was with AIB for years and the bureaucracy was immense and I always had to go into a local branch to sign paperwork

    Have a mortgage, current account and credit card with AIB. And previously a car loan. Haven't set for in a branch for years. All done electronically and has been for a good while.


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    #12
    ygolometsipe
    Registered Users Posts: 882 ✭✭✭ygolometsipe


    TuringBot47 wrote: »
    If you want to p*ss the money away on clothes it shows you aren't very responsible with money.


    A buddy of mine has an investment opportunity he said 7000% return but its critical to act now due to the market disruption in Dublin. Its a very popular product has major appeal.



    I was thinking about getting a bank loan and paying it back but if they ask about the investment I can't really say much as my buddy said to keep it
    quite.


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    #13
    is_that_so
    Registered Users Posts: 32,136 ✭✭✭✭is_that_so


    ygolometsipe wrote: »
    A buddy of mine has an investment opportunity he said 7000% return but its critical to act now due to the market disruption in Dublin. Its a very popular product has major appeal.



    I was thinking about getting a bank loan and paying it back but if they ask about the investment I can't really say much as my buddy said to keep it
    quite.
    If you look for a business loan you will get grilled. Holiday, DIY etc are all better ways to describe your needs. However, I'd be wary of sure things especially if they required an investment of multiple thousands.


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    #14
    The Tetrarch
    Registered Users Posts: 2,092 ✭✭✭The Tetrarch


    ygolometsipe wrote: »
    A buddy of mine has an investment opportunity he said 7000% return but its critical to act now due to the market disruption in Dublin. Its a very popular product has major appeal.

    I was thinking about getting a bank loan and paying it back but if they ask about the investment I can't really say much as my buddy said to keep it
    quite.
    That can not be legal.


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    #15
    starbaby2003
    Registered Users Posts: 664 ✭✭✭starbaby2003


    ygolometsipe wrote: »
    A buddy of mine has an investment opportunity he said 7000% return but its critical to act now due to the market disruption in Dublin. Its a very popular product has major appeal.



    I was thinking about getting a bank loan and paying it back but if they ask about the investment I can't really say much as my buddy said to keep it
    quite.

    Is this a joke ? You do realise there is NO guaranteed return on an invest and anyone telling you the return is 7000% is either an idiot or a liar or quite possibly both. Either way definitely not the kind of person you want to hand any cash over it.


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    #16
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    caff wrote: »
    If it's a secured loan you have to tell them. Unsecured you don't. Car loan would be secured against the car, you miss payments they take the car. It's like a mortgage.

    if you manage to get approval on a personal loan for say 30 k , its not a good idea to say you need it to buy a house you are otherwise buying with cash , they wont agree to that or at least some banks wont , they dont care if you use the 30k to top up a house purchase but they dont want you to tell them


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    #17
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    starbaby2003 wrote: »
    Is this a joke ? You do realise there is NO guaranteed return on an invest and anyone telling you the return is 7000% is either an idiot or a liar or quite possibly both. Either way definitely not the kind of person you want to hand any cash over it.

    thanks for the warning , i was just about to hand over the money


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    #18
    Capt'n Midnight
    Moderators, Recreation & Hobbies Moderators, Science, Health & Environment Moderators, Technology & Internet Moderators Posts: 90,827 Mod ✭✭✭✭Capt'n Midnight


    https://www.youtube.com/watch?v=Uf_JtNFyB18


    Just write a letter to your bank manager.


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    #19
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    _Kaiser_ wrote: »
    I agree with the last line, but to be fair I think the Credit Unions have upped their game in recent times.

    I'm a late convert myself but did some consolidating with the local one last year and it was all done via email and posting off a few forms and statements. Didn't have to go into them at all.

    Was with AIB for years and the bureaucracy was immense and I always had to go into a local branch to sign paperwork

    Email and posting? Welcome to the 90's ;)

    The only time I have needed to go in to a bank in the past 12+ years to deal with a person is when I applied for a mortgage. I have everything online and and on the app. For 5 years now, I have been able to borrow money if I needed it with the click of a few buttons and the money is there instantly - a hell of a lot more convenient and efficient that post and emails back and forth.

    Also, please NEVER send any financial information via email!


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    #20
    mcgragger
    Registered Users Posts: 438 ✭✭mcgragger


    ygolometsipe wrote: »
    A buddy of mine has an investment opportunity he said 7000% return but its critical to act now due to the market disruption in Dublin. Its a very popular product has major appeal.



    I was thinking about getting a bank loan and paying it back but if they ask about the investment I can't really say much as my buddy said to keep it
    quite.

    Sounds legit.


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