bank loan, how hard is it to get approved ?

[slow13dude]

Mine's not...

Wow, then you're screwed. Mine is.

[Revhead]

My interest rate is lower now than it was when I started. I would have been worse off with a fixed rate.

[The_Paladin]

see above

it's possible that the rates would rise...........then you'd be screwed if you didnt have any leeway.

[TracidTrax]

Im after a personnal loan from commonwealth bank for another car. Any of use know if they would loan me $37,000. Im 19 years old, i have a good credit card history, this is my first loan, i have a full time job which is secure and been with the company for over 2 years now, some of my accets are a car worth round $21,000, large tv, laptop etc totaling around 5,000. I make roughly $2,400 a month and spend around $300 on petrol etc. I live with my parents and dont pay any boarding fees

As soon as ive bought the new car, id be selling my current car and putting that money straight back into the repayment

[TracidTrax]

Oh the reason im asking is ill be going into the bank maybe today and applying for it though i dont wanna look like a fool when i ask for $37K.

[Bec]

From what you said above, I am 95% sure you'll be able to get 37K from the CB.

[Anquetil]

I've had no end of trouble getting a loan for a car. I am an excellent saver with no debts to my name but the banks dont really care about that.

I've been in full time employment for the last 6 years, never out of work, I have a healthy salary, but I move around alot and get itchy feet with boring jobs. So they see that as unstable.

I checked my credit rating and could see no wrong. I just don't get em?

My advice;

Ensure you dont have a credit card with a rediculous limit, reduce it down if it is.

Keep your address up to date on your credit rating.

Give them heaps of documentation to prove your income.

Ensure that you have been in work for at least 3 months.

And most importantly, if some banks get wind that you are buying an import they will say no, even if you were approved. Some have 5 year or newer rules, even if it is a persoanl loan and not a car loan Don't tell em about the make/model until as late as possible.

[TracidTrax]

From what you said above, I am 95% sure you'll be able to get 37K from the CB.

well i hope so, gonna be going in a couple of hours and find out. im feeling a bit nervous about it cause i dont know what to do if they reject me

Shane, if you have been in the same job for 2 or more years they consider that a stable job. so they didnt give u a loan when u applied?

If they reject me today id be quite pissed cause i think im making enough money to repay it and i have the accets and stable job to back me up. Either way i dont care if i get a 7 year loan id be paying it off within 2 years as ive already got 20k car payed off lined up to sell

[Anquetil]

Shane, if you have been in the same job for 2 or more years they consider that a stable job. so they didnt give u a loan when u applied?

If they reject me today id be quite pissed cause i think im making enough money to repay it and i have the accets and stable job to back me up. Either way i dont care if i get a 7 year loan id be paying it off within 2 years as ive already got 20k car payed off lined up to sell

I've been fully employed for years but just not always in the same role. I'm in IT.

If you have a 20k car that you own, I don't think it will be a big problem for you. Good luck!

[TracidTrax]

thanks mate, ill let use know how it goes

[merlin6014]

If you go on the Commonwealth Banks website there is a calculator that you plug your wage, living expenses, ect into to and it tells you how much you can borrow.

*DISCLAIMER - borrowing for cars is bad.

[silver gts-t]

in the end what they will look for is your ability to repay the debt consistently...

[eddieneedsboost]

hey guys im hoping to buy an r34 gtt at the end of the year and ill have roughly 8k saved and want to borrow 20k. The main problem is i am only full time casual, although it may aswell be permanent cuz my hours dont change. I earn 500pw clear. Do yas think the bank would approve me?

[double overhead sun visors]

There are many ways to get a loan & many packages out there, from Salery Sacrafice (good if your a public servant), to hire lease arrangements with some companies, straight personal loans, loans where your car is held as surety (security if you default) or you have someone go guarantor. Each financial lending institution will have their own unique packages, thou many will have the similar core features. If your unsure contact a personal lender broker and they can help narrow the choice. Just Google it & you will find plenty.

Obviously allow head room for mods, maintenance & mistakes. And for gods sake make sure you have comprehensive insurance if you are going to finance a large part of it.

The best loans are those off your family – if your lucky enough for them to be cashed up or have equity in their mortgage (if you own a home it helps a heap, other items like PC’s, TV’s devalue over time – quicker than your car!) then go that way.

Also, take care when applying at various institutions because when they run background credit checks on you, your previous (recent credit) checks will show up & it may seem like your desperate for the $$$ & you’ll be screwed before you get a look in. Also avoid lending institutions that advertise things like will lend to bankrupt, bad credit history, imagrant, no fulltime work – ALL LOANS APPROVED type company’s like ‘Wizzard’ car loans (there’s a place in Coogee), as the loan you get could get you your next ride or a bitch load of debt that will make your next loan even more difficult.

[Tommyk]

I'm gonna have to go for a loan too.

Looks like i need to borrow around the 35k mark

I earn decent money, have about 35k saved up (including the value of my current car). Been employed here for 4 months so far. Any idea if I will have difficulty getting a loan?

I think my biggest problem is that I wanted to buy property, but cant afford to do both the property and the car. although I think i only need 5% of the value of the property as a deposit plus the 1% loan insurance

[FATGTS-R]

I also had a little trouble when I borrowed money to buy my car. I was able to get the finance through the sharks at a million percent interest with all sorts of penalties for paying it back earlier but wasnty able to get a decent rate loan from a bank.

I'd been at my job for over 3 years and knew I was liked by management as I was quickly promoted up the ranks so I thought why not ask my employer for a loan. I was first greeted with a laugh but when he realised I was serious he told me to put my proposal in writing and give it to him. So I put down I wanted $20k with which I will pay back in monthly installments that have a minimum amount but can be higher. I said I was prepared to pay back the $20k plus 5% interest on top. For security I said it will stay fully insured and will remain registered to the company untill I payed it off. He pissed himself laughing again and gave me the money.lol.

[ctjet]

under no circumstance will i borrow money to buy a car.... simple, if i dont have the cash then i wont buy it

but thats just me

[predator]

http://www.baycorpadvantage.com/

If any of you are curious.. request a free credit history from the above.. Nearly all financial institutions make a heavy decision on whether to lend based on the above. If Baycorp has a bad record of your credit, you're up the shit without no paddle.

They own your ass, and nearly every Australian.

[mcnamg]

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.

mate I actually work for one of the 4 big banks in Personal Lending and ill explain how it works for you.

firstly if you are a casual you may apply for a loan if you have worked in the same job for between 6 to 12 months (depends on bank as to how long) and your income will be averaged based on the payslips or letter of employment they request.

one other thing which is hard with imports is most banks wont allow you to use them as security therefore the interest rate is higher and the banks class unsecured lending as a higher risk and will be less willing to lend to marginal borrowers

income is a major misconception with many people as what you think you need to survive and pay the bills is way different. for example a single person with no dependants must have a ceryain amount left over after all their other financial commitments to be able to afford the repayments. you may ask how this is worked out so ill give you an example.

say john smith takes home 1200 per month after tax (banks work everything out monthly as thats how often interest is calculated) he is single with no kids lives at home with mum and dad and pays $200 in board and has no other commitments. you might say well hes got heaps of cash left over he can easily afford the loan well youd be wrong. the bank says that all people depending on their situation require a set amount of money to survive. they work this out using a poverty index worked out by some maths guru from monash uni. If you want do your research its called the henderson poverty index or HPI. For a single person with no dependants its $919 per month so add that to john smihs rent and suddenly he only has $81 left over per month for loan repayments which means according to the bank he will not even be able to afford a $4000 loan over 5 years find a lender who does 7 years and you may be ok.

also for people who dont know how a credit report works heres a brief rundown.EVERY time you apply for credit (this includes credit cards, store cards, interest free, home loans personal loans and so forth) and consent to a credit check it is noted on your credit file. this record does not record whether these loans were approved or were declined they only record what it was who it was that was checking and how much it was for. this means that if you go from bank to bank applying for loans and being knocked back each of those banks can see that you only applied for the same loan in 5 other banks today and you can guess what this means for your chances. So if you dont think youll be approved dont go applying at 10 different banks or it will bite you in the ass.

also on the topic of credit history if you bank with a particular bankand have a savings history this greatly increases your chances of being approved. if you go to a bank where you have no history they have no way of seeing how well you manage your bank accounts and have to rely on just the details you provide in the application as they cannot check the history of your accounts with other banks due to privacy laws. most banks will lok for at least a 3 months savings history as this shows you have ability to put money away which you can use to pay the loan.

some banks now will not allow guarantors on loans due to the increased risk and if you try to make a joint application with someone like a parent they will assess each of you individually to make sure that based on each persons single income they can both afford to pay the loan. this is because if one of you stops paying the other person is still liable for the full debt and need to be able to afford it.

whew thats all i can think of off the top of my head if you have any other questions just ask happy to answer if i know

[Triskillion]

i earn $400 a week before tax, im casual and work 25 hours a week, also full time TAFE student. bank was willing to loan me $15000 to get my skyline, decided to pay cash instead.