CC churning - equifax scores

[Finale]

Got a knockback from ANZ in December for Adventure card. Score dropped from 890 to 820.

Looks like a good credit score doesn't help much in Australia unlike the US where my limit is 10x more than here and the banks approved whatever card I applied. Feel kinda weird when working and living in Australia.

 

[theblank]

Looks like a good credit score doesn't help much in Australia

it doesn't help and doesn't hinder because a bank makes its own assessment from all the data, they have more than what the credit bureau records.

have a look at your credit score website, its full of adverts marketing finance products to you. That should be telling you something.

 

[burmans]

Got a knockback from ANZ in December for Adventure card. Score dropped from 890 to 820.

Looks like a good credit score doesn't help much in Australia unlike the US where my limit is 10x more than here and the banks approved whatever card I applied. Feel kinda weird when working and living in Australia.

Agree with the blank that at this stage the banks have more about you themselves than the bureaus do. There's a lot more to it than just your score, i.e. your other lending comittments, your income/expenses and the level of "free" income that leaves to service those lending commitments. Plus we all are very aware of the current enquiry into banks where they have been slammed about some of their lending practices, little wonder that at least for a while they want to apply more rigid interpetation of what is "reasonable" to lend.

As for America, well you do know what caused the GFC don't you, hardly a system I'd recommend Australia follow.

 

[deebens]

Got a knockback from ANZ in December for Adventure card. Score dropped from 890 to 820.

Looks like a good credit score doesn't help much in Australia unlike the US where my limit is 10x more than here and the banks approved whatever card I applied. Feel kinda weird when working and living in Australia.

I got knocked back for that in November I think it was. Was holding another ANZ card at the time. Churned to a NAB card in the mean time, today reapplied for travel adventures and was approved.

 

[Finale]

Agree with the blank that at this stage the banks have more about you themselves than the bureaus do. There's a lot more to it than just your score, i.e. your other lending comittments, your income/expenses and the level of "free" income that leaves to service those lending commitments. Plus we all are very aware of the current enquiry into banks where they have been slammed about some of their lending practices, little wonder that at least for a while they want to apply more rigid interpetation of what is "reasonable" to lend.

As for America, well you do know what caused the GFC don't you, hardly a system I'd recommend Australia follow.

I don't think it's that easy in the US anymore. I worked with a lot of American people and they seem to have issue getting cards. Their credit reports are quite comprehensive as well and the balance is reported each month. Chase won't approve the card if you already opened 5 cards with any bank past 24 months. I heard it was even 4 with Cap one. Cap one also looks at the balance you have every month.

One thing I feel about US banks is they value the relationship (also the case with AU Amex) and a lot of time they manually approve CC rather than just listen to whatever computer says.

In Australia, I'm not sure if banks actually know more about you since one can lie. My credit report isn't showing how much mortgage I have and Amex cards are not showing as well.

I got knocked back for that in November I think it was. Was holding another ANZ card at the time. Churned to a NAB card in the mean time, today reapplied for travel adventures and was approved.

I was holding another card with them as well and normally got an instant approval when applying for their cards. Cancelled 2 cards and will try to apply again in a couple of months but probably a different card.

 

[theblank]

In Australia, I'm not sure if banks actually know more about you since one can lie. My credit report isn't showing how much mortgage I have and Amex cards are not showing as well.

what is meant is that banks have much more information to assess the applicant on, because the applicant provided it on the form.

 

[andye]

NAB home loans with repayment history have just landed on Mrs andye's and my creditsavvy. No change to score (though possible the visible score is only updated monthly)

 

[mviy]

I wonder how long it will take for the other banks to follow

 

[rock86]

NAB home loans with repayment history have just landed on Mrs andye's and my creditsavvy. No change to score (though possible the visible score is only updated monthly)

My score went up 75 points to the excellent range from NAB mortgages showing up.

 

[exceladdict]

It is very interesting comparing the different information available in Credit Savvy (Experian), Credit Simple (D&B) and getcreditscore (equifax) and how long it takes information from certain lenders to get through to some of them. I wonder if experian being CBA owned is why some lenders seem to be taking longer to send information there.

It is also interesting watching small fluctuations in the D&B "Score" on credit simple, despite no meaningful activity occurring. Given the (somewhat scary) information comparing you to people with similar demographics on the credit simple dashboard, I wonder if the scoring system is now more relative than absolute.

 

[andye]

My score went up 75 points to the excellent range from NAB mortgages showing up.

Conversely my creditsimple has fallen 103 points now my (pristine) home loans have landed

 

[GSP]

Sucks then for your score if your home loan is paid off and you don't get the benefit of years of on time over required payments.

 

[cove]

Credit Savvy has me at 814 and steady for months. We have no mortgage and no credit cards that are ever overdue. My struggle to get the upgrade on Bankwest was my last struggle to get what I wanted.

 

[Rusty776]

Used Getcredit and got a score of 924. Is this ok do a few churn and burns throughout the year? . I was thinking 3 or 4 throughout the year. All paid off in full before interest kicks in and then closed. Any advice much appreciated.

 

[Scr77]

Used Getcredit and got a score of 924. Is this ok do a few churn and burns throughout the year? . I was thinking 3 or 4 throughout the year. All paid off in full before interest kicks in and then closed. Any advice much appreciated.

That’s a good score, but it is only part of what a bank uses to cough an application. As long as you’re not applying for a loan anytime soon, just apply for the card, get points, cancel and repeat. 3 or 4 a year shouldn’t be a problem. Many of us go through more than that.

 

[burmans]

That’s a good score, but it is only part of what a bank uses to cough an application. As long as you’re not applying for a loan anytime soon, just apply for the card, get points, cancel and repeat. 3 or 4 a year shouldn’t be a problem. Many of us go through more than that.

Some are doing double that!

 

[MattA]

Conversely my creditsimple has fallen 103 points now my (pristine) home loans have landed

Similar experience here -- my Credit Simple (D&B/Illion) score dropped by over 100 points when my mortgage (on which I have never missed a payment) got added to it late last year. Funny thing is, the exact same datapoint also hit my Credit Savvy (Experian) report, and that score went UP.

 

[I love to travel]

What are peoples experiences with credit cards and investment property loans. Want to get an investment property in next 6 months, does this mean my cc churning days are over given that I will have about 50% of equity only and therefore card approvals may become much more difficult?

 

[Scr77]

What are peoples experiences with credit cards and investment property loans. Want to get an investment property in next 6 months, does this mean my cc churning days are over given that I will have about 50% of equity only and therefore card approvals may become much more difficult?

My experience is 4 years old and I already had a long list of churned cards. As part of my application, I provided my spreadsheet list of cards with all limits, dates cancelled etc. Simply stated that our family flys in business and first for next to nothing and that all cards are paid off in full. They never asked a single question about them. Of course, that was before the current banking shakeup.

 

[exceladdict]

What are peoples experiences with credit cards and investment property loans. Want to get an investment property in next 6 months, does this mean my cc churning days are over given that I will have about 50% of equity only and therefore card approvals may become much more difficult?

This is not financial advice, however, I'm aware of two things to consider.
1. My understanding is credit granting is more about the ability to repay (income) vs your assets/equity. Reports elsewhere about retirees with savings but unable to get CCs due to low fixed income. Has the property loan impacted your ability to make repayments on the cards? I have read that banks will discount the rental income i.e. your expenses may be $1000 per month, and even if you can get $1000 per month in rental income, they will only consider you as earning $800 to cover the possibility of times without a tenant. So, therefore, you have $200/month less to pay off your prospective new card
2. Hopefully, you haven't also been churning home loans and attracting a large number of enquiries that way!