Finance question

[JJCRU23R]

G'day all..

Just looking for advice regarding my current financial situation.

My wife and I previously appied for a consolidation loan from our bank which we wanted to pay off some debts as well as trade in my car for a people mover.

About just under 4 weeks ago the bank knocked us back, not because we couldn't meet afrordability, it was because my history paying my credit card with this particular bank hasnt been the best.. I've been behind payments in recent months which seemed to be enough for them to say no.

Fast forward to today- I have sold my car and have paid off most of my credit card debt. I've also made scheduled payments through Internet banking which are above the minimum monthly repayment everytime i am paid, which I plan on continuing to do.

Since I think I have gained a better grasp of my debts, my wife and I are still hoping to apply for a consolidation loan to fix up things around the house which need attention as well as buy ourselves a 7 seater.. It's all about the family.

HOW SOON SHOULD I approach the bank again? I heard that leaving too

Many "footprints" when enquiring or applying for loans can effect your credit.

[DJKOR]

What I am about to say is not advise nor will I say it is actual fact... just believe what you want to believe. After working with <blah>, I may or may not have gathered some information.

Despite what you may have heard, you don't exactly have a 'credit score' like our mates overseas do. You still have a credit file though, but what financial institutions get off this may or may not be good for you. Basically what they look for is the number of enquiries (no more than a certain amount in the last 6 months... I think the figure was 6, but some may choose less) and that you have no defaults against your name or anything bad. Any other information like your payment history (like if you are always on time or always a little late) is only available within the provider. So in other words, if you have a good payment history with one particular company, it helps to stick with them when asking to borrow again. If your payment history is not so good, you ma be best looking elsewhere.

Back to what I said before about enquiries, this is anything which involves a credit check, regardless of whether you were approved or not. Apply for a credit card, that counts as an enquiry. Sign up for a mobile on a plan... that's another. Having lots of enquiries on your file makes it look like you have been shopping for credit, and it can negatively affect your chance of getting credit. That said, having no enquiries can also affect it as well in that they may more provide you with as much as you were looking for since no history on the file means you may be a higher risk.

It's all a game of chance really depending on who you are.

[JJCRU23R]

G'day, it's a few days short of 8 weeks since I first approached the bank applying for a personal loan, which I ended up being eventually rejected.. I've chosen to lay low and made regular fortnightly payments as well as paid off most of my credit card debt from the money I received for selling my corolla. (although admittedly I have made some purchases on the card since- same purchases I would have made anyway had I been approved anyway) I still hope to get a personal loan from the bank that said no to me before... (I just like to keep things simple and bank in the one place)... Would you think it's safe to approach the bank again now?

[httttt]

I can confirm what DJKOR said. When a company does a credit check on you all they can see is your applications for loans/credit but if you are getting a loan with someone you have already done business with then they will look into your history and more in particular your repayments.

If a bank has rejected you in the past then don't bother with them ever again without first having a sit down consult with an adviser from that bank.

Also, other banks do not know if you got rejected.. they only see the application... so if you approach another bank don;t mention the rejection at all and say that it was approved but you wanted to shop around.

(I'm mean no offence by this last part.. Really!) Having said all that, if a bank has rejected you then that is a sure indication that you are doing or have done something wrong and you need my need to evaluate your lifestyle choices and potentially start living within your means.