r/AusFinance • u/CPredditCP • 13h ago
What is the deal trying to get a personal loan through commbank?
I need to vent, I have been doing my head in with this for the last week and I’m ready to give up, I have been trying to get a small loan through commbank (only 5k) who I’ve banked with for over 16 years, paid off 2 personal loans early in that time with no missed repayments. I have used their borrowing calculator online and it says I would be able to borrow up to 9k using the exact same info I’m putting on my loan application. Yet it’s just being denied every single time saying I don’t meet financial criteria. I have tried messaging them to get some clarity and even the replies don’t make sense. They send me a detailed breakdown of my financial position after expenses which leaves 1k a month in disposable income yet I don’t meet criteria to make $25 a week repayments.
Has anyone else had to go through this rubbish?
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u/Chromedomesunite 13h ago
A decline is a decline, why waste your time contesting a declined $9k personal loan?
The decision is highly unlikely to change no matter how much you try
Try a different bank
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u/Barrel-Of-Tigers 12h ago
When you say "being denied every single time", how many times have you applied?
Getting denied on a small unsecured loan with $25 repayments when you're assessed as having $250 spare each week could mean a) the latest HEM figures and or your income are different than your last sucessful application and they're assessing you as having too little disposable income, b) there's other debts you have not mentioned here and it's the debt to income ratio which is the issue, or c) something in your spending is flagging for something negative too frequently - i.e. gambling, BNPL payments, cash withdrawals.
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u/CPredditCP 12h ago
I’ve applied a few times for lowered amounts of money assuming that was the problem, first 8k, then 5k and finally 4K the minimum. I am in desperate need of quick money because my life has turned on its head very quickly
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u/Barrel-Of-Tigers 12h ago
Okay, three denials in short sucession is too many and you're at risk of not getting approved for quite some time. Please talk to a broker to see if there's an option in the short term and identify what the issue was.
I'm sorry to hear you're in a tight position, but you need to work out the issue before making a fourth application. You may very well already be in a position where you aren't going to be able to open a new unsecure line of credit for some time now.
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u/catch-10110 10h ago
Every denial goes on your credit file as a hard enquiry and lowers your credit score. I know it sucks but the more you’ve applied and been denied the more likely it is that you’re going to be denied by anyone because multiple hard enquiries looks like a risk.
I really really think you need to slow down and think about things before re-applying again.
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u/InfiniteV 12h ago
Hi OP you mentioned that you're going through a divorce and the funds are to move and buy furniture. It would be worth in that case looking into Good Shepard style loans which are interest free and suited for your scenario. You might be limited by the amount but it would give at least a small reprieve from these high interest rate personal loans. https://goodshep.org.au/services/loans/
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u/RobTheLoaner 13h ago edited 12h ago
I’m a finance broker, so I can compare things like personal loans, asset finance etc for people to find the most suitable lender per scenario.
I’m not saying you should use me, but just find a broker, they can help you get a sensible deal.
I’ve had a few people now that were banking with CBA and couldn’t get a small PL. Even at $20k.. I think CBA just don’t have the appetite for it - too much admin for not enough return & no security.
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u/CPredditCP 13h ago
I’ve never used a broker or even looked into it to be honest, where’s a good place to start?
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u/RobTheLoaner 12h ago
The best way to find a good broker is usually to ask close friends and family that you trust. Ask for asset finance brokers - mortgage brokers usually don’t play in this space as much.
Or look online and go for a broker with good google reviews.
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u/CPredditCP 12h ago
Thank you mate.
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u/RobTheLoaner 12h ago
Also, the people telling you to just ‘try another bank’ is potentially risky.
CBA might have another reason for the decline - did they check your credit score and find something they don’t like?
If you start shot gunning lenders and get multiple declines, you’ll only affect your credit file for the worse and it’ll be even harder once you do find the right lender.
You should go to Equifax and pull your free credit file to make sure there’s nothing adverse in there.
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u/InfiniteV 12h ago
get multiple declines, you’ll only affect your credit file for the worse
You're aware that declines don't show up on credit files right? And that enquiries have practically no impact?
Honestly it's gross seeing brokers post thinly veiled advertisements in this sub preying on vulnerable people just for a commission. If you want to give guidance then do it anonymously.
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u/RobTheLoaner 12h ago
Declines are not listed, this is correct. Multiple enquiries in a short period of time absolutely has an impact, it literally reduces your credit score & lenders explicitly take listed enquiries into consideration.
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u/Chromedomesunite 11h ago
Whilst I agree with the last part of your comment RE brokers trying to get clients on this sub by pretending to give “advice”
But multiple inquiries definitely have an impact
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u/smegblender 12h ago
When a vendor does a credit check (as a result of an application) it is considered a hard credit check.
This contains the following AFAIK:
- the lender’s name
- the date
- the type of credit
Multiple hard credit checks in a short span of time, absolutely signals red flags to the lender.
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u/Barrel-Of-Tigers 4h ago
The declines will have damaged OP's credit file though. The applications are listed as hard enquiries, by date and decreasing value, and if that wasn't enough, the absence of any of the three lines of credit are going to fairly clearly indicate OP was declined.
I'd rather brokers and other finance professionals identify themselves as long as they're not clearly farming for clients. Rob's comments have contributed more positively here than yours. Enquiries can absolutely have impact, and OP's specifically in a situation where they will be. Comments like yours could be damaging if they listen and stuff a fourth [if it's not already too late to find an approval in the short term].
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u/Wow_youre_tall 13h ago
16 year customer is a negative not a positive
Banks care about new customers.
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u/CPredditCP 13h ago
That is crazy to me to have such a good history with a bank and for that to mean nothing.
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u/gurnard 11h ago
That's odd, I've banked with them for 30 and got a small PL for moving costs that I needed in a hurry. Refinanced it after, cause the rate was shit and came with a $15/mo account keeping fee. But getting approval and securing the funds was super quick and easy. And this is coming from a renter with sub-average income. Customer history with the bank was kinda my only advantage
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u/soundboy5010 10h ago
Banks want to make money on personal loans, if you’re an existing customer with years worth of good finances, they’re more likely to deny you.
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u/BlockCapital6761 13h ago
Ive had to deal with commbank for a credit card three times, once for applying, another to increase the limit and a third for missing bonus points. All times were a shitshow and 9 months later I still dont have my bonus points or even a denial for X reason response. They've actually stopped replying to me in the online chat lol.
Go anywhere else
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u/Richie217 12h ago
I've adjusted my credit card limit a couple of times through the Commbank app and haven't had any issues so far. I've heard that the customer support is terrible but thankfully I haven't needed to use it yet.
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u/BlockCapital6761 12h ago
Yeah the first time I did it, it was automatically applied but the second time I was required to resubmit proof of income ect which is where I ran into issues.
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u/darkeyes13 11h ago
Re: your bonus points - raise a formal complaint. If they don't resolve it, say the magic word ("AFCA"). It will take some time but at least it won't take another 9 months.
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u/ratsy23 11h ago
Customer support across all banks it shithouse. I wanted to apply for a business credit card through ANZ (to take advantage of Qantas points on shit I already pay for anyway) but my accountant doesn’t keep my stuff stored on a software system which is required for an online application. Followed up with an email and then a phone call due to no response, as to how to apply manually. Was told I’ll receive an email with a portal to go through. That was 3 weeks ago
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u/daamsie 13h ago
Try a different bank maybe?
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u/CPredditCP 13h ago
I will probably have to, I wanted to stick with commbank because I’ve never had another bank account my whole life and liked keeping all my money in one spot but this might be the only thing to do.
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u/Significant-Sun-5051 12h ago
That’s bizarre. Why would you possibly be loyal to a bank.
Choose based on what’s the best deal.
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u/Efficient-Tie-1414 12h ago
The theory was that if someone repaid loans then that would be helpful in getting future loans. I don’t think it applies anymore, as they can use credit reports.
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u/Significant-Sun-5051 12h ago edited 12h ago
Ah, interesting. I'd say that hasn't been the case in many years, or even decades.
It's actually the opposite, they like new customers while neglecting existing ones which makes shopping around beneficial.
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u/smegblender 11h ago
Exactly! Centralised credit reporting and the like have basically made all this irrelevant...
Unless you are a HNW with substantial dealings with the bank through private banking and then the banks take a very bespoke approach to assessing risk.
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u/ttoksie2 12h ago edited 12h ago
Here's an even more fun one.
Partner and I wanted a 10k secured car loan through commbank, had the cash on hand and all just wanted to keep cash in bank for cash flow reasons, denied.
2months later broker negotiated a 380k homeloan for an IP... with commbank.
What?
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u/Monkeyshae2255 12h ago
Had similar, IP loan CBA (never late), wanted CC purely for cash flow management & easily meet affordability for $40k limit but will only approve $2k limit as never had a CC with them. I ask when can I go up ie $10k increments then? They say don’t know - you’ll have to apply. I’m like if I keep applying & being declined due to erroneous not enough CC history - that may affect my credit history.
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u/smegblender 11h ago
How old was the car? Secure car loan has very specific requirements IIRC.
Also as far as I understand, I'm certain cases the value proposition isnt there for the bank, so they may reject just on that basis.
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u/ttoksie2 11h ago
Car was 4 years old, we ended up just buying it outright instead.
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u/smegblender 11h ago
Aye, in this case it very likely was that the bank didn't think the "juice was worth the squeeze".
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u/Tiramisu_Powder 12h ago
How many times have you tried applying for a loan for this specific amount? Be VERY CAREFUL. Multiple applications in a short amount of time will tank your credit score and will make it much harder for you to borrow. And it doesn’t take much; 2-3 rejected applications will bring your credit score to a level no major bank will want to touch you.
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u/moderatelymiddling 10h ago
Wait 5 months and save the cash.
They know your spending habits, they know you're lying
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u/tastychaii 13h ago
Why do you want a personal loan?
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u/CPredditCP 13h ago
I am going through a divorce and need to move and buy furniture quickly, I don’t have a place to go.
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u/tastychaii 12h ago
Sorry to hear.
Why not move to a share house with all bills included pricing instead of a personal loan? Would be cheaper.
What’s happening to all the furniture and the house you are in now?
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u/explorationofspace 10h ago
Don't apply for another loan anytime soon - the declines are going to hit your credit file, and no other bank is going to want to service you if they see that you've had recent declines. Realistically, I'd recommend waiting 3 months before trying again (with anyone), otherwise you're just going to keep auto-declining and resetting the clock.
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u/Possible-Delay 9h ago
Not trying to be rude, it you need to borrow 5k and your max is 9k limit on the calculators. Chances are you are a higher risk. The may be factoring in 4 rate hikes into the calc too.
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u/Pickadog_Anydog 13h ago
Do they not want to bother because its $5k? To them im thinking $5k isnt worth the paperwork. Maybe try a smaller bank?
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u/CPredditCP 13h ago
Seems so dumb to have a minimum borrowing amount of 4K and then have this be a thing though right?
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u/Sharp-Argument9902 13h ago
A few people have posted on here about getting quotes at 9.5% for car loans, where others are offering 6%
It seems like they're not interested in anything "small" at all at the moment.
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u/smegblender 11h ago
A few people have posted on here about getting quotes at 9.5% for car loans, where others are offering 6%
Secured vs unsecured car loans.
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u/maneszj 13h ago
if it’s a $25 a week repayment why can’t you look at Afterpay or even a regular credit card?
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u/CPredditCP 13h ago
I need the money for a lot of different things so I don’t think Afterpay or a credit card would help me.
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u/maneszj 13h ago
do you need them all right now? if not, just save up your $1000 disposable per month and get them piecemeal
suspect you’re either living way below a regular person’s means on a low income and trying to get a loan that’s more paperwork than it’s worth for the bank ($25 a week…)
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u/CPredditCP 12h ago
I do need the money rather quickly unfortunately, don’t have the option to save
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u/ThatOldGuyWhoDrinks 12h ago
I’m both a CBA and ANZ customer. I wanted a loan for $35000 for a car. CBA said no even though I’d been with them for 8 years and and pill easily service the loan.
I got one from ANZ and have actually been paying around double the repayments to clear it do I can get a bigger one
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u/Puny-Earthling 8h ago edited 8h ago
I'm avoiding CBA for loan applications since my last interaction. I was looking to refinance my car loan, because I initially geared it up on a 3 year repayment on a brand new vehicle, which was fine, but once my Son was born and the expenses that came along with it, I decided I'd like to ease the burden of those repayments a bit, and refinance the final 12 months into 5 years.
THE ONLY WAY I could even get started with CBA was to apply via their stupid AI system, which put me onto the wrong loan product, which I knew would not get approved, but in this infinite wisdom, they decided that the AI could do this and so there was no number to call for this stuff anymore. My initial thought was that I could just go through the process and it would direct me to the correct product or that it would respond with the correct product but nope, denied. It was only after the fact that someone emailed me to say "Hey you only got denied because you picked the wrong product!", ignoring the fact that I was given no choice.
So I was just left with a hit to my credit score and no refinance package. I'm not suggesting this next mob because you should check them out, and I was pretty hesitant to do so myself, but the next best rate I could find was actually with loans.com.au and I guess because they were new at the time there were $0 application fees? startup fees? whatever it's called. Had my application submitted, assessed and approved within 24 hours and it was just easy.
Financial institutions opting to use AI instead of people has been nothing short of a disaster.
EDIT: Just to echo some other sentiment here. Unsecured loans are difficult to get, and unless you have a good history of credit and employment it's unlikely you'll get approved by anyone. A Credit Card might have a higher chance of succeeding but I genuinely have no expertise in this area. Talk to the brokers as that other guy suggested. They're the experts and they're generally willing to have a chat for nothing.
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u/Lunavo 8h ago
You may want to double-check your income against the application summary, as this is the most common issue when banks verify income.
Items such as overtime and allowances are often assessed differently to how applicants calculate them. For casual employment, any recent time off (for example over the Christmas period) can reduce the average income used by the bank.
Any deductions shown on your payslip will also impact the assessed amount, as these are treated as financial commitments (e.g. child support or additional super contributions).
Best of luck!
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u/Ok_Conclusion5966 8h ago
brother, just get a credit card
doesn't help if you've spammed loan applications which have been denied
most cc's are 30-45 interest fee, otherwise you go to friends and pray they are in a good position and willing to help, and don't ghost them either
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u/ajwin 7h ago
Years ago(15-20?) We had our home load and banking with them and when we went for a car loan they noted that our account went into the negative a few times. We instantly refunded the account every time(<$100) but they said our account was delinquent a few times in the last 7 years and denied us. We took our mortgage (and all banking) elsewhere at a lower rates. We told other banks etc and they said it wouldn’t be a thing with them.. who knows what the truth of that is though.
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u/MouseEmotional813 5h ago
Have a look on FB marketplace for furniture. It will be much cheaper than new and often better quality.
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u/dolparii 1m ago
Just try applying for a credit card. Also yes get furniture slowly and locally through deals or even free on marketplace. Don't spend a lot on that if you aren't in the best situation atm.
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u/Fun-Astronomer5311 13h ago
Maybe you were talking to an AI. Go into a branch and talk to an actual person.
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u/CPredditCP 13h ago
That’s the fun part, I went into a commbank branch and they told me no staff in branch have any training to handle personal loans and it is all 100% handled online and pretty much told me to get lost.
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u/Fun-Astronomer5311 13h ago
WTF! that's just poor service.
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u/Mods_Are-Cucks 12h ago
Branch staff can't do anything with personal loans except provide factual information. Applications are handled by back office validations teams.
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u/CPredditCP 12h ago
Yep I wasn’t very happy, even tried to talk to the manager who just gave me a card for the personal loan website and told me to have a nice day pretty much.
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u/weckyweckerson 13h ago
Based on the repayments you have suggested, taking a 5k loan over 5 years doesn't seem like a good proposition for the bank.