Share
807 Posts.
lightbulb Created with Sketch. 67
clock Created with Sketch.
17/12/19
11:28
Share
Originally posted by pastperformer:
↑
I'd like to point out that you have implied causation between Afterpay and a possible loan rejection, I don't think that is accurate or true. Credit assessors will look at your capacity to service your current debts and the future debt you are applying for. They then apply a "stress test" based on your credit cards being maxed at a higher rate, as well as your mortgage being assessed at a higher rate (in the case of rising interest rates). If you don't have capacity to service these debts under the stress scenario, you are denied on your application. There is only two ways to improve your serviceability under stress, either have more income, or have less debt. In your case, I'd speculate that Afterpay was seen as a liability, ie it demands some of your Income, as such this is less income available to service other debt. In essence it would be exactly the same as having say a credit card with a $5k limit. The truth is, you simply have substituted one credit facility for another, your real issue was serviceability under stress. Not Afterpay in and of itself. That's why the articles and other like it are completing misleading.
Expand
Originally posted by pastperformer:
↑
I'd like to point out that you have implied causation between Afterpay and a possible loan rejection, I don't think that is accurate or true. Credit assessors will look at your capacity to service your current debts and the future debt you are applying for. They then apply a "stress test" based on your credit cards being maxed at a higher rate, as well as your mortgage being assessed at a higher rate (in the case of rising interest rates). If you don't have capacity to service these debts under the stress scenario, you are denied on your application. There is only two ways to improve your serviceability under stress, either have more income, or have less debt. In your case, I'd speculate that Afterpay was seen as a liability, ie it demands some of your Income, as such this is less income available to service other debt. In essence it would be exactly the same as having say a credit card with a $5k limit. The truth is, you simply have substituted one credit facility for another, your real issue was serviceability under stress. Not Afterpay in and of itself. That's why the articles and other like it are completing misleading.
Expand
I pretty clearly said that its all about the bank calculating borrowing capacity as you just said. I didnt have any issue borrowing money at all and I doubt Afterpay would have made any difference at all. Im simply sharing what my experience was. The bank will look at it and ask questions if its on your statements and that's fair enough. Weather that affects your loan approval depends on what you owe and how well you keep the account, just like any other liabilities and your spending habits. I also, to clarify hold a small parcel of APT and think it's a great option for consumers and investors. Sentiment updated. Buy-Held