Loan Problems

[dooda]

Hi guys i have a small problem with my loan i just got to by a skyline. I wen to sign me contract this sarvo and everything went well but apparently the guy said they want me to close my credit card with commonwealth (the loan being with NAB) he didn't say when i have to close it by or anything else. It's not the end of the world if i have to but i'd rather not. The question im asking is: in my contract it doesn't state anything about having to close my credit card. Do you think NAB will actually check to see if i have closed it if i don't? Are they allowed to make me close it?

Any help would be greatly appreciated

Thanks Guys

[webng]

I really don't think he has any 'say' on what cc you have but my guess is he probably wasn't meant to give you the loan with your credit rating. Credit cards are seen as debt even if you don't owe anything on them. If i have a $15000 credit limit on my card and owe $10, when i apply for a loan it will be considered a $15000 debt and hence my loan probably won't be approved. But if he's already approved your loan then i don't see the problem.

[dooda]

Yeh thats what i thought i signed the contract and everything today. I even asked him when i have to cancel the card and he just said in a few days when ever i can. So it sounds as if it's not really going to matter if i don't cancel it. I'm just not sure though.

[Kozeyekan]

It's not a bad idea though. At the very least, change to a debit card. That way your credit rating will still be OK if you go to get a phone plan, or a bill in your name, etc.

[Sheriff Wan]

Err I may be able to shed some light here as this is my job at one of the major banks (Shall remain nameless)

Firstly - Credit rating is fine otherwise the NAB would have either not given you the loan or told you about the adversity...

Secondly - he has asked you to close the credit card for serviceability reasons, for example our policy dictates that a credit card with a limit of $x will be taken at 3% i.e. $5,000 limit = monthly repayment of $150...

So your expenses might be able to handle the loan on the provision that your credit card is paid out and no longer a debt - does that make sense?

I could almost guarantee they wont check that you have closed the card, they will only find out if you go for further finance.

This is a condition we set to cover ourselves...

Don't hold me to any of this as always its an opinion, albeit a well informed one

Good luck with the purchase mate.

[bloodzkull]

ever thought of just closing it and opening one witht the NAB? they probably don't do it anymore but for a while they where offerening 6 or 12 months (can't remember) intrest free on the cards when you swap over to them.

[dooda]

Thanks heaps Sheriff Wan thats exactly what i was looking for. I reckon i'll just keep it open and if ever they kick up a stink i'll just close it to keep them happy. I remember when i applied he said something exactly what you said about it keeping my monthly expense numbers low. Now i just have to book some tickets to go and buy one.

thanks Guys for the help.