Rejected loan applicants urged to persevere as 'credit is there'
Published 19/08/2010 | 05:00
While access to credit has undoubtedly tightened here, for those who can demonstrate an ability to repay there is credit available, according to chief executive of the Irish Brokers Association Ciaran Phelan.
If a bank or credit union declines your request for a loan, it is possible that the documentation you provided was incomplete -- in which case you should review what was required for the application process and possibly try again.
It could be a case that you have a poor credit rating at present in which case financial institutions would be slow to provide you with access to further credit.
"You can repair your credit rating," Mr Phelan said.
"If you can demonstrate over time that you are trying to mend your credit history and that you have the financial capabilities to maintain payments, then a bank or credit union would be happy to sit down with you again in a year to two years to review the possibility of issuing a loan."
He said that borrowing money from friends and family could be complicated and often ended in disputes.
It was, therefore, a last-resort measure that should include very specific terms regarding repayment method and duration.
He added that before borrowing from family or friends, it was worth ensuring that the transaction was carried out more as a business deal than a personal favour.
Terms and conditions should be agreed, in order to avoid any discontent on the part of either party involved.