Amount of Veda score taken out when getting a new credit card question

[desafinado74]

Hi guys,

I applied and got approved for the Coles Platinum Mastercard back in November.
As a result, my VEDA score dropped, from 724 in mid November 2016 to 614 now.

So,

1) Do you tend to lose around 100 points whenever you apply for a new credit card ?

2) Will your credit score get affected whenever you apply for an increase in credit limit, or
you say yes when you get a credit limit increase offer ?

3) Which credit reporting company is used more by financial providers, Veda or Experian ?

 

[burmans]

Hi guys,

I applied and got approved for the Coles Platinum Mastercard back in November.
As a result, my VEDA score dropped, from 724 in mid November 2016 to 614 now.

So,

1) Do you tend to lose around 100 points whenever you apply for a new credit card ?

2) Will your credit score get affected whenever you apply for an increase in credit limit, or
you say yes when you get a credit limit increase offer ?

3) Which credit reporting company is used more by financial providers, Veda or Experian ?

1) No its much more complicated than that sorry! I've seen drops as low as 20 and have seen reports of close to 200.
2) Depends if the lender does a check on the bureau, they frequently do.
3) Veda but the majors have a stake in Experian and are actively trying to balance this out to bring better competion

 

[desafinado74]

Thank you Burmans with the great reply.
With regards to Veda v Experian, i also notice that there can be a sizable discrepancy between your Veda and Experian scores.

 

[burmans]

Thank you Burmans with the great reply.
With regards to Veda v Experian, i also notice that there can be a sizable discrepancy between your Veda and Experian scores.

There is, this is largely down to a thing called "information asymmetry". Veda and Experian have different data sets (largely Veda has more) which essentially means that if one is missing some information (and traditionally Experian has had quite a lot less) you can only process a score with the information you have. This is likely to change with Comprehensive Credit Reporting as the Financial Institutions will a) be contributing data every month and b) at least the majors will likely be reporting to both agencies.

So I would expect the scores to get closer. The other factor is both scores are proprietary and closely held (I've managed some significant Comprehensive Reporting programs but even I found it hard to find this out) as essentially this IP is their competitive advantage. This and the fact that they have derived the scoring mechanism off analysis of different data in the first place, means they are never going to be the same. But if you look at other countries with Comprehensive Credit Reporting they do get closer over time when this is implemented.