CC churning - equifax scores

[exceladdict]

I have kept logs of my history for some time, interestingly this algorithm change has reduced my score, not increased it. I find this curious because I have been churning less of late. It will be interesting to monitor this with you all and see what we find impacts the scores moving forward, and by how much.

 

[NoName]

My score also well up. Approx 160pts higher now.

 

[yojohnny]

In my experience, having credit accounts with perfect repayment history drop off my credit file has caused my credit score to increase.

How long did they take to drop off?

 

[exceladdict]

How long did they take to drop off?

Accounts take 2 years from date of closure
Enquiries 5 years from date of enquiry

 

[Mattao]

I have been churning about 6 cards a year for a bit over two years now. I also accidentally missed a payment last month. So their is no suprise that my credit score isn't great.

Whilst I do appreciate that it is your income level / ability to make payments that banks concentrate on, it was with some trepidation that I approached Nab for the third time in 2 1/2 years for a card. Clearly they can see that i have been churning plus my credit score is rubish. The last two cards with them were held for 2 months each. However, I got no questions about this. Instead they focused in on me providing proof that I had paid off my home mortgage (repaid recently).

My question is - do any experienced churners ever get asked about their activity and why they keep cancelling cards? Or is the issue that is simply not on the assessors list of issues to check?

 

[Lynda2475]

I only churn 2 cards a year, but have never been asked why, actually ive never been asked for any additional information except for payslips or ID and then always via email never had to speak with a person.

The one time I accidently let a card roll-over to a new year, there was an immediate jump in my score credit.

 

[GSP]

I have been churning about 6 cards a year for a bit over two years now. I also accidentally missed a payment last month. So their is no suprise that my credit score isn't great.

Whilst I do appreciate that it is your income level / ability to make payments that banks concentrate on, it was with some trepidation that I approached Nab for the third time in 2 1/2 years for a card. Clearly they can see that i have been churning plus my credit score is rubish. The last two cards with them were held for 2 months each. However, I got no questions about this. Instead they focused in on me providing proof that I had paid off my home mortgage (repaid recently).

My question is - do any experienced churners ever get asked about their activity and why they keep cancelling cards? Or is the issue that is simply not on the assessors list of issues to check?

Never have. Similar amount of cards to you for 7 or so years.

 

[Mattao]

Never have. Similar amount of cards to you for 7 or so years.

Good to know GSP. Will stop expecting the question!

 

[yojohnny]

Accounts take 2 years from date of closure
Enquiries 5 years from date of enquiry

Thanks!

 

[benjy]

My equifax score updated a couple days ago, in the first time in forever it has exceeded 1,000, now at 1,010.
I've reduced the number of credit enquiries I've made over the last 6 months. 2 credit + 1 utilities, because I know I won't get approved due to cards open so not both applying.
Strong credit history having a major emphasis on the score (3 ^^^), instead of multiple credit applications decreasing the score.

 

[andye]

My equifax lost half of July's leap this month

 

[sudoer]

My equifax lost half of July's leap this month

I get my monthly report in a few days and will confirm if I see something similar. I have opened two credit cards in 30 days though...

 

[andye]

It's possible that a car loan which was only checked with experian has reached them

 

[theblank]

Following an algorithm change by Equifax last month, it seems churning now helps your score rather than hinders. I went from high 600s last month to low 900s this month...

Whilst this might make you feel good its irrelevent that Equifax has changed their algorothim to give a higher number.

When lenders assess your credit application, they make their own decisions based on the data, they are not going to rely on a modelling decisions built by a 3rd party thats primary purpose is to sell credit to their user database.

TBH i suspect they know most people sign up with all the platforms, so Equifax makes their number higher. So then of course punters will grow fonder of the service that rates them higher.

 

[sudoer]

My equifax lost half of July's leap this month

Mine climbed by another ~100 points. The two cards I opened (QF Money and DJ Amex) are only showing up as enquiries and not yet in my list of accounts.



The unstable employment or residence negative impact is just bizarre, no changes with either 5+ years.

 

[exceladdict]

Interesting, on get credit score which I think is the free version of equifax, those factors have popped up as well.
Illion and Experian scores seem to be stable.

 

[theblank]

The unstable employment or residence negative impact is just bizarre, no changes with either 5+ years.

I think you read it backwards. Its a down arrow, the rest are up.

 

[sudoer]

I think you read it backwards. Its a down arrow, the rest are up.

The unstable employment or residence negative impact is just bizarre, no changes with either 5+ years.

I read it correctly...

 

[GSP]

Mine climbed by another ~100 points. The two cards I opened (QF Money and DJ Amex) are only showing up as enquiries and not yet in my list of accounts.

View attachment 255448

The unstable employment or residence negative impact is just bizarre, no changes with either 5+ years.

I'm assuming the above is from a mobile app. Here is a grab from the Website for mine. Interesting comment on the BNPL affecting my score - I've never had one, although the wording is ambiguous whether it has affected my score or not, but the one bar indicates it may have. I had one bar for multiple applications (not surprising) and 4 or 5 bars on Credit history and closed cards.

 

[GSP]

I just check my score (updated the 1st of each month) and it was jacked up to 979 (from 832). Not sure if some 2016 enquiries dropped off (I did quite a few around July/August 2016 from memory) in addition to the new methodology.