I have put in two applications at my bank for a loan, the second one a bit smaller and they were approved but not for the type of loan I wanted. Now I have put an application in with another bank and waiting confirmation if it is approved. But since then I have read that this could effect my credit rating or future borrowing by applying for so many loans. Should I cancel this new application and go with the original bank?
3 or 4 applications
- Thread starter Swifter
- Start date
It will not affect your credit rating. What it will do is turn up as 2 - 3 hits on your credit file. A 4th hit from a different lender again would indicate to them or a 5th lender that maybe 3 other lenders turned you down and even if you look good to them, they may not approve you if 3 others did not. (maybe those 3 know something??) It won't affect anything in future - you can just explain that you only ended up with one loan.
Maybe too late - just see how you go - 3 hits is no big deal especially if 2 came from the same lender.
Hiya Prop
You are correct that In general, some enquiries on a file wont affect the credit rating.
There are circumstances ( 95 % lends, some lo doc, lender is having a bad hairday) where "black box" the credit score will be significantly affected
Now, some lenders will have a look and qualify these things with a human eye, but then many wont bother
ta
rolf
You are correct that In general, some enquiries on a file wont affect the credit rating.
There are circumstances ( 95 % lends, some lo doc, lender is having a bad hairday) where "black box" the credit score will be significantly affected
Now, some lenders will have a look and qualify these things with a human eye, but then many wont bother
ta
rolf
aNZ should (and usually do) then pass it to an senior assessor unlike many others. I just had one approved by them for a client who had 10 enquiries in the past 2 years. the reason for the valume of enquiries was sound and were tackled head on at time of application. The loan was approved without any clarification sought.
No offense but when it comes to assessing outside the "scorecard" ANZ are one of the better ones.
my guess is that it wasn't the enquiries that made it fail the scorecard but other info contained in the app. I'd still run it past your BDM if it's just the asset position that's weak due to the marriage split. Divorce papers or a court order outlining the split is always handy to provide at tme of application in these cases.
Logic is when your borrower cant afford an IO loan, but they we will give you a PI loan no probs.
ta
rolf
ta
rolf
In the shortish term, yes.
Numerous credit applications over a limited period are a strong predictor of future delinquency and tend to be reflected in credit scorecards. A good explanation for your reasons may help but scorecards work pretty well, so......
perhaps the "mud at wall" brokers and bankers should be compelled to warn you of the obvious ( to them at least) risks with such shopping
The plan for many brokers or lenders in general is the assumption that if you hold a pre approval with them that you are " off the market"..........and wont be shopping around to that sort of level.
Spent some time at a NAB thingy today on credit scoring, and I reiterate, look after your file if you need lends > 80 % LVR.
ta
rolf
The plan for many brokers or lenders in general is the assumption that if you hold a pre approval with them that you are " off the market"..........and wont be shopping around to that sort of level.
Spent some time at a NAB thingy today on credit scoring, and I reiterate, look after your file if you need lends > 80 % LVR.
ta
rolf
Battler
It could do............depends what sort of broker and what their focus is
ta
rolf
It could do............depends what sort of broker and what their focus is
ta
rolf
Really?
I didn't know that. I thought that any enquiries made by a broker on our behalf would be on a no name basis until it went to pre-approval and/or application stage.
Is that not the case?
It sort of defeats the purpose of shopping around for the best deal, what happened to the old adage of getting 3 quotes?
Remember the other adage: Don't sign anything until you read it first.
Each time you apply for credit you sign away your rights to privacy under the credit legislation.
note the difference between privacy and piracy is only one letter
ta
rolf
ta
rolf
Remember the other adage: Don't sign anything until you read it first.
Each time you apply for credit you sign away your rights to privacy under the credit legislation.
But you would have already registered a "hit" before you get to read or sign anything wouldn't you?
Just because I look in a bank window doesn't make me a bank robber
As I've always said the Taxmans not your enemy..............
I'm glad I'm at a stage where I'm finished with them.
I believe it is the case; your broker's query is the same as you checking your own credit report yourself.
I think Rolf's point is that some (not-so-good) brokers will submit applications all over the place, like a fishing expedition, rather than making one, judiciously selected, application. Many customers wouldn't be aware just what bad practise this is until it's too late.
I imagine that this is particularly annoying in recent times as banks have been so tardy processing applications. If you have offered on a property subject to a 2 week finance clause, it makes sense to me that you'd want to apply to a few banks. Waiting a week or more for the first one that's delayed doesn't leave you much time to try & get it through somewhere else.
