Beating the NCA: Getting a loan

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fdaniels

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So guys. So I've got a question regarding getting a loan (vehicle finance). I had a lot of trouble getting a loan at the start of the year because I didn't have any credit history. I eventually got vehicle finance for my car in February (got shafted with a nice hefty interest rate :cry:). I now want to get a second vehicle (a motorbike) and would like to know how banks work out wether to give you a loan or not.

Since Feb I've had other accounts and never made a late payment. My fiance recently started working so I no longer have to give her an allowance (R2700) anymore. So I am wanted to get myself something. The problem is that I don't make it a habit of leaving lots of money in my account :D I normally wait until all my debit orders run off then I pay my accounts then I spoil myself and the fiance. So by the end of the month my account is pretty barren. Hehe.

How do banks calculate affordability?
 
fdaniels said:
The problem is that I don't make it a habit of leaving lots of money in my account :D I normally wait until all my debit orders run off then I pay my accounts then I spoil myself and the fiance. So by the end of the month my account is pretty barren. Hehe.
How do banks calculate affordability?
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I do the same, you only live once. But I have not had a problem securing a loan go check your credit record(on transunion and the like) if its nice and green with smiley faces you shouldn't have a problem granted you have enough income according to their criteria.
 
fdaniels said:
Since Feb I've had other accounts and never made a late payment. My fiance recently started working so I no longer have to give her an allowance (R2700) anymore. So I am wanted to get myself something. The problem is that I don't make it a habit of leaving lots of money in my account :D I normally wait until all my debit orders run off then I pay my accounts then I spoil myself and the fiance. So by the end of the month my account is pretty barren. Hehe.
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Bad idea. The general rule was that the maximum repayment be 30% of your gross. However now with the NCA, they also taken into account your monthly expenditure so that they know what you're left with. You may or may not get finance depending on how much you spend each month, and how much you're left with, especially considering that you already have another vehicle financed.

Besides, it's not a bad idea to save. You never know when you might need it in an emergency, and then you wouldn't have to take out a personal loan (at a lovely interest rate) to gain access to some instant cash.

Remember it's nice to spoil yourself, but spending everything you have on a monthly basis is usually what lands people in bad debt. If you really want a bike, my suggestion is to save and buy it cash. Bikes are not as expensive as cars, and you'll also need to consider insurance (which may stretch you a bit if you decide to finance it).
 
The general rule on a car was 25% and 30% on a house - but as Mike says, they look at affordability now

If it helps, I had no issue getting car finance with multple run up credit cards and my accounts never seeing a positive balance ...
 
Cool. Thanks for the replies guys.

So apparently banks don't do pre-approved loans anymore (At least that is what Nedbank told me). So I pretty much have to come with in with an offer to purchase and then they will do all the needed calculations and credit checks at that point. They also told me that just checking my credit score will actually lower it! So does that mean if I apply to multiple banks to get the best deal that my score will be even lower at the end of the day?? :confused:
 
yes it does but then on a personal loan this time of the year the banks seems to be very generous so its a good time for anyone who needs money to take a loan......lol.......score cards are adjusted meaning if they wanted to give u 30K a month ago now u might get 50K depending on the obvious conduct of accounts etc...........in some cases u might also be pre-approved depending with who u bank......so ja have a look around.........
 
Pearson6 said:
yes it does but then on a personal loan this time of the year the banks seems to be very generous so its a good time for anyone who needs money to take a loan......lol.......score cards are adjusted meaning if they wanted to give u 30K a month ago now u might get 50K depending on the obvious conduct of accounts etc...........in some cases u might also be pre-approved depending with who u bank......so ja have a look around.........
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Personal loans average in the 25% interest rate range, not wise to use unless you don't have any other option.
 
Well personal loans are based on your overall credit profile, a bad profile with a high risk yes u looking at dat but normally on an average profile u looking at prime plus 6.5 max so dats round about 15-16%.........
 
I have a very decent rating an I'd get 20%+ as well.

Who gives 15-16%?
 
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