bank loan, how hard is it to get approved ?

[mcnamg]

banks dont just look at income and credit ratings when assesing loans either they look at how long you have been in your current address if its over 3 years you get top marks if its less than 3 you get a lower mark and less that 12 months you get the lowest score. same with jobs the longer you are in your job the higher the score. the other thing they look at with unsecured lending is assets (so they can send a sherrif round to take them if you dont pay) they will ask you how much superannuation you have, do you have any shares and if so how much are they worth value of any current motor vehicles, and how much your personal effects are worth (proplr always underestimate this area if you have insurance quote the insured value of your items not what you think you could replace them for and be generous say a dvd is worth $30 to replace so is a cd, clothes say at least $50 per item and look at the new replacement value of any other items such as furniture and if you are a tradesperson include the full replacement value of your tools in your assets.

With loans and credit cards when working out how much you can borrow then bank only looks at the minimum monthly payment of the loan/card when working out how much money you have left over it doesnt matter how much you owe on the credit card at this point but they do compare your current assets to your current debts to work out if your assets are worth less or more than your current liabilities. so mnay people get declined as of this as they have borrowed way to much on credit cards and take out another to pay it off and then come to the banks in desperation to try and pay them all out and close them and they cant afford to.

in my experience plenty of young people get loans all they look for is a steady income doesnt matter if you are casual and that you are steady in your job and at home and have some assets and savings.

[Turbo Tim]

Reading this thread has been a fair eye opener for me!

Im very suprised at what some people borrow on there incomes! I think when you are borrowing more than your annual wage that isnt a good thing at all!

[The_Paladin]

and so we return to this post hey?

37k for a 19yo's car?? fark. i dont even know where to start.

if you succeed you'll be the banks bitch for a veeeeeeeery long time. i'd take a long hard look at what you are doing. for a 19yo not to be satisfied with a supra something is very wrong!

[ctjet]

not satisfied with a Supra!! bah, id kill everyone i know for one of those things

[TracidTrax]

Ok heres the lowdown, went into bank on Friday and applied for $37,000 exactly over 7 years on a variable rate. I bought in my payslips and told them about my current supra which will be sold as soon as i get the next Supra (RZ). They say they will call me back today and tell me if i can get it or not.

and so we return to this post hey?

37k for a 19yo's car?? fark. i dont even know where to start.

if you succeed you'll be the banks bitch for a veeeeeeeery long time. i'd take a long hard look at what you are doing. for a 19yo not to be satisfied with a supra something is very wrong!

Believe me i was quite satisfied with my Supra NA 2 years ago when i bought it though last year when i had borrowed some 1 elses TT supe for a day i got hooked on it. Now i have a nice late model 98 RZ 6 speed which id like to buy.

Hope the bank calls me back bearing some good news

[Modena]

well this is related to skylines. soo yah.

i was wondering if banks would loan money to ppl working casual ? the reason i ask this, is after i buy my skyline, i wouldnt have much saved money left over. just incase something happens to my skyline, i can get quick money.

i earn about 130-140per week(casual job+ other income). i can earn more from my casual job if i wanted to.

do u think the bank would lend me money ? i phoned them before, they told me to fill out the online loan form and find out. but i dont want to do that just incase i get a bad credit record due to application getting rejected(income too little).

im 19 btw.

any help would be good.

This may be a bit late but this is what happened to me:

I work casual (full time hours on a contract until mid year) and I also go to uni part time, I applied for Study Loan (no fees) and asked for 5 grand... they asked me to bring the letter telling them that I work at such and such company and how I get a week. Also I had to get some quotes for the 5 k that Im gonan use on.

Too easy.

[TracidTrax]

well screw this shit, the bank obviously doesnt want my interest

got called up yesturday by commbank saying my loan has been declined which i dont understand cause the last 2 weeks i was making an average of $700 a week gross which i had payslips to prove and showed them but still got declined, had a good credit card history for 2 years also but still no loan.

Whats bullshit is that they dont give a reason as to why i cant get it, all they said was u havnt had a credit history before so they dont know if im good to pay them back.

They asked me y not just take out $20,000, i was like wtf, i dont need $20,000, what am i gonna do with $20k if the car is $37K. Seriously stupid.

It would be good if they actually told me the max i can get so maybe i could make other arrangements

So just proves that some 1 young with all the criteria and stability still cant get such a large loan

Oh and i reapplied for $30K but i doubt ill get it now

Edited March 27, 2006 by TracidTrax

[gtr660hp]

Why borrow 37k- and after 7 years pay back 52k on a car worth nothing at the end of the 7 year term????

[Modena]

well screw this shit, the bank obviously doesnt want my interest

got called up yesturday by commbank saying my loan has been declined which i dont understand cause the last 2 weeks i was making an average of $700 a week gross which i had payslips to prove and showed them but still got declined, had a good credit card history for 2 years also but still no loan.

Whats bullshit is that they dont give a reason as to why i cant get it, all they said was u havnt had a credit history before so they dont know if im good to pay them back.

They asked me y not just take out $20,000, i was like wtf, i dont need $20,000, what am i gonna do with $20k if the car is $37K. Seriously stupid.

It would be good if they actually told me the max i can get so maybe i could make other arrangements

So just proves that some 1 young with all the criteria and stability still cant get such a large loan

Oh and i reapplied for $30K but i doubt ill get it now

37 K for a car at your age? Your nuts.

Put that money to better use...

[mid life crisis]

the bit i find amusing is you say you have grossed over 700 dollers for the last 2 weeks and have the payslips to prove it . dude i think they might want just a little longer than 2 weeks of good pay how do they know that the next 2 weeks u migh only earn 300 bucks ?. they dont you might be pissed now but they have done u a favour 37 g for a car at your age is a huge commitment .be happy ya the supra ya got and not driving a old gemini like so many people of your age are .you are privleged to be driving the car you got already

[predator]

some good info on the loans approval process there.. learned a bit myself.

37k for a 19yo's car?? fark. i dont even know where to start.

if you succeed you'll be the banks bitch for a veeeeeeeery long time.

Well depends what you buy.. In some ways I wish I had make the sacrifice earlier and spent say $30k on a car at age 19.. by the time it was paid off when i was 24, if I didn't buy something that is not totally going to plummet (i.e. an import), and trashed it, and it was still worth say $20k.. I'd have sold that by now and have the deposit for a house.

People say 'save it, put it to good use'.. yeah fine, but maybe only 1 in 5 people can actually save and not spend it on just crap. If you have loan you are pretty much obligated to keep paying back and make other sacrifices to meet the repayments. Its poor saving, but it is at least forced saving.

I wasn't in a position to be able to afford even $20k for a car until after uni at about 24..

Asking $30k+ for a loan is pushing it.. I think i had to go for a $5k loan for my second car, and even then the bank had to think about it. But times have changed a bit with financing - banks attitude is 'we dont care really, give them whatever they are silly enough to ask for'

[justin911]

try 'melbourne financing'

i use them, long as u got a guarantor person, ur all set

[Beer Baron]

why not sell your current supra first? then borrow the $20K + what you get for the current supra should be plenty to spend $37K on the new one.

[TracidTrax]

the bit i find amusing is you say you have grossed over 700 dollers for the last 2 weeks and have the payslips to prove it . dude i think they might want just a little longer than 2 weeks of good pay how do they know that the next 2 weeks u migh only earn 300 bucks ?. they dont you might be pissed now but they have done u a favour 37 g for a car at your age is a huge commitment .be happy ya the supra ya got and not driving a old gemini like so many people of your age are .you are privleged to be driving the car you got already

cause im full time, i supplied commbank with my work details so im more than happy if they ring my work and speak to my boss, i work minimum 37.5 hours per week, thats y they ask for 2 payslips not 1

[TracidTrax]

why not sell your current supra first? then borrow the $20K + what you get for the current supra should be plenty to spend $37K on the new one.

yes thats the most obvious thing to do, though how do i get to work? i cant bus it cause it takes me 2 hours longer to get to work and catch 3 buses

i told them this, i have a ~21k car that id sell as soon as i buy the other one though i dont think the teller passed this info on to head office or who ever reviewed my application

[TracidTrax]

try 'melbourne financing'

i use them, long as u got a guarantor person, ur all set

that would require me to get full comp insurance right?

19 yo with a 98 model TT supe worth 37k trying to get insurance would cost an arm and leg

[gtr660hp]

19 year old with a 37k 98 RZ Supra bout 5k+ premium/annum and 5k excess-fark that

[justin911]

yip full comp...

without going into the hole insurance debate again... if your cars worth 40k... insure it

if it gets stolen your gonna be paying back the bank all the money and have no car obviously.... atleast with the private financing they try and make you protect yourself somewhat..

that would require me to get full comp insurance right?

19 yo with a 98 model TT supe worth 37k trying to get insurance would cost an arm and leg

[Bec]

[TracidTrax]

Why borrow 37k- and after 7 years pay back 52k on a car worth nothing at the end of the 7 year term????

i went for 7 years cause its easiest to pay back weekly and i would have had the entire $37k paid off in 18 months as id be putting roughly $20k from my old supe straight into it

so ye wouldnt be paying as much interest as u mentioned