Westpac Application Form missing very Important Information

Foma2 on 04/04/2015 - 11:34

Hi, everyone.
I have applied for a Westpac Reward Altitude Black Card a few weeks ago.
My application has been rejected. Was I disappointed ? Yes I was. But it is not what I want to talk about in this thread.
My biggest disappointment was not with the outcome of my application but with the way they collect and thus assess the financial circumstances of an applicant.

  1. Question in the application form : do you have a mortgage : YES/NO.
    My answer is YES.
    But where is the question about the amount owed to the bank ?
    There is a huge difference between the one who owes $600,000 to the bank and e.g. $50,000.
    Someone with $65,000 pretax income and $50,000 home loan can be in a much better financial situation than the one with $110,000 pretax income and $600,000 home loan.

  2. How many dependants you have : …
    It is a legitimate question but where is the question about your spouse income ?
    Again the one with let's say three kids and a working wife is in a better financial situation than the one with only two kids but being a single parent.

It is just major missing bits. There were a few others as well but probably they are not worthwhile discussion on the forum.

My main point is that other banks DO ask you such questions in their application forms.

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Comments

  • holdenmg on 04/04/2015 - 11:47

    The first question provides a YES/NO trigger which then allows them to do a Credit Search to see how much of a Mortgage is outstanding. As such, many people wouldn't necessarily know the exact amount of their outstanding Mortgage (or could inadvertently/deliberately give the incorrect amount).

    The Second Question allows them to make calculations about how many people might be reliant on the Income of the Primary Applicant.

    • BigTed on 04/04/2015 - 12:03

      Just curious - what makes you think that a credit check would show the outstanding balance on an existing mortgage?
      I would be STUNNED if this information was readily available.

      • holdenmg on 04/04/2015 - 12:34
        +1

        You probably signed an authority on the Application form for them to source any further information that would assist them in assessing the application. A Credit Report would only form part of the process. A Credit Search may involve contacting institutions and other parties, asking about the outstanding balances and the servicing of these loans.

        http://www.creditsmart.org.au/what-has-changed

        • Foma2 on 04/04/2015 - 13:44

          Ok, it make sense, but why do they ask you about current combined credit cards limit ?
          They can easily find that data via Credit Search, right ?

        • holdenmg on 04/04/2015 - 14:02

          I dunno.
          If I was looking at it I'd want to know the Current Credit Card Limit by the Individual concerned, also any joint account liability and any matters they were Guarantor for.

        • mini2 on 04/04/2015 - 14:06

          @holdenmg:

          Credit card limits aren't listed in the file. In fact some of the cards I've held >5 years aren't even visible so to speak.

        • holdenmg on 04/04/2015 - 14:11

          Well according to: http://www.creditsmart.org.au/what-has-changed

          In the new comprehensive credit reporting system, your credit report may contain the following information about consumer credit that you have been given or have applied for:

          "the maximum amount of credit available to you under each credit account (and if you get a credit limit increase on a credit card, for example, the new credit limit can be shown)"

  • Shadowsfury on 04/04/2015 - 12:24
    +1

    Aren't credit cards under your own personal name, and therefore your spouses income is irrelevant?

    • Foma2 on 04/04/2015 - 13:42

      Yes, you are absolutely right, but then why do they ask about number of dependants ?
      It is a bit controversial, isn't it.
      My understanding is that they need to collect all information related to your financial circumstances (at least all information you want to provide them).

  • mini2 on 04/04/2015 - 13:30

    Wouldn't be hard to look up what your mortgage may look like. Your mortgage lender would've had an enquiry on your credit file and part of that entry includes how much you're after at the time of the application not the actual amount borrowed.

    By having too many questions will affect how much automation they can have with the application process.

  • Foma2 on 04/04/2015 - 13:46

    Automation ? OK.
    I have discussed the outcome of my application with their consultants and managers. They agreed that the application form is not quite right and promised to pass my feedback further up.
    Isn't it a good sign that there is not much "automation" but more like incomplete set of data ?

  • Foma2 on 04/04/2015 - 13:52

    Note # 3
    Question in the application form : do you have a mortgage : YES/NO.
    My answer is YES.
    But where is the question about current market value of the property ?
    There is a huge difference between the one who has e.g. a $200,000 mortgage on let's say a $400,000 house, and the one with a $300,000 mortgage on a $600,000 house.
    The second one despite having a bigger mortgage has much more assets.

    • holdenmg on 04/04/2015 - 14:18

      They are looking at your capacity to service the Maximum Credit Limit you have applied for in conjunction with the mortgage outstanding, rather than if they can realise the sale of a property over which they have no interest.

      • Foma2 on 04/04/2015 - 18:10

        My mortgage is minimal.

  • holdenmg on 04/04/2015 - 14:27

    ANZ have a good explanation of the process here:
    https://www.anz.com.au/about-us/corporate-responsibility/cus…

    • Foma2 on 04/04/2015 - 18:08

      Thanks a lot for the link.
      Let's see.

      Why was my application for a new credit card declined?You didn't provide us with the required documentation.

      • I applied at the branch and they've checked on the spot that all is good.

      Your financial position didn't qualify you for the credit limit, credit limit increase or credit card you applied for.

      • I do not want to comment on this as it may require to go into my personal details but just believe me my financial position is really good at the moment.

      Your age did not qualify you.

      • I am older than 18.

      Your credit history did not qualify you. If you've got a history of outstanding or overdue debts.

      • No outstanding or overdue debts ever.
  • RockyRaccoon on 04/04/2015 - 16:37
    +1

    Think of it this way.

    In 5 years time they will be coming to you asking if you'd like a credit card. Then you can have the great pleasure in rejecting them.

    Many moons ago Amex rejected me and refused to tell me why, even though I owned my house with no mortgage, I have rejected them back 10 times in the past 5 years :)

    • Foma2 on 04/04/2015 - 18:12

      I do not want to take a revenge on anyone but probably there was a good reason why I have not had any accounts in Westpac till now.
      Most likely I won't have any bank accounts with them till the end of my life.
      Unless they change their attitude of course.

  • ssmith3104 on 06/04/2015 - 15:55
    +1

    Westpac credit decision making seems seriously flawed. A few years ago when the Gillard govt. was subsidising bank personal loans as "green loans" down to a zero interest rate, I applied for $5K to partially reimburse myself for $15K of solar panels. My financial position was a $1.0 million unencumbered house, $80K verifiable income, nil monthly commitments, an existing Altitude gold card with a large limit that I paid off to zero every month, a $5K Westpac overdraft limit that was hardly ever used, and a perfect credit bureau record. Westpac proceeded to then DECLINE my "Green" personal loan application! When I expressed my astonishment, they then offered to approve it provided that I offered my wife's guarantee. What gall. Nevertheless, because I did not want there to be a record of decline, I proceeded that way, and of course paid off that loan flawlessly. But, I'll remember this always and make the effort to tell the world how stupid and greedy they were in that instance. I don't forgive such things easily.

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