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skiptdouglas

8,560 Posts.

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29/10/16

13:41

Post #: 20221832
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Originally posted by Nortical ↑

Long time reader of the property forum, get much entertainment from it.

Interesting call with a bank today, I'll try and summarize the situation.

Had a personal loan when I was in my teens and paid off a 3 year loan in 10 months, other than that, never been in debit or owned a credit card.

Had been looking at buying a house roughly a year ago, have a good work history and good income, approved for about $500K on a single income, had 10% set aside and it was all approved in principle but decided to wait off on buying a home due to a number of factors.

So while working full time I have started a small business on the side, turnover expected to be around 50K. While not an issue, cash flow started to eat into my savings a bit, and with the benefit of earning points where there is no surcharge, to free up cash and for accounting purposes, I decided to get a business credit card.

So while applying for the card I was told I was automatically approved for 20K, I said that was probably excessive and that 10K would do. When the card appeared in my accounts I noticed the limit was 5K, not really an issue as I had limited outgoings at the time. Had to sort out another issue today and inquired about why the 10K was not approved as I would probably get close to that in two months if the moons lined up.

Now, despite having cash in the same bank many times the credit limit, and other assets (shares mainly) I was told that based on my particulars (a range of factors apparently) I should wait 6 months and inquire then.

I realise that a home loan and a credit card are two different forms of credit, but really? Is lending someone many times less than their equity at the same institution more risky than lending someone on a single income a few hundred thousand? To be honest I was borderline insulted as I have basically been with the bank since birth.

Credit card is in my name to be clear...

Am I missing something?

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Sounds like your credit rating might be low , not bad or anything just low. A lot of people have no idea what their score is or even how it works .
I get a monthly update on mine and alerts when anything is applied or changes

Google free credit check and you can see your score .
1 Upvote

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