Credit Card Churning May Get More Difficult.

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To my surprise, I was declined on the spot for the 40k bonus points credit card with Macquarie (only requested $6000 limit). It's my first time and the only card I have active is the Westpac Altitude that I applied for a month ago. I can't imagine it to be anything to do with my income and expenses given I'm a single high income earner who lives with parents. Oh well, time to put on the brakes for a while.

Macquarie rejected me as well in the last month as did HSBC. As I am in exclusion periods for most cards I applied and was successful for the Qantas Premier and ANZ Rewards Platinum. Lower end sign up bonus but also low or zero AF. Keeps things ticking over.
 
Is anyone aware whether keeping an individual credit card long term is important on your credit history/score?
Just trying to figure out whether to hold on to a "keeper" credit card for the long term (in the background) and keep turning over a second card or just keep the one card at a time (cancelling my old card after being approved for my new card).
 
Credit scores is irrelevant if your income is high enough. Generally it drops a little bit when you cancel a card with large credit limit, but it soon rebounds back eventually.
 
Credit scores is irrelevant if your income is high enough. Generally it drops a little bit when you cancel a card with large credit limit, but it soon rebounds back eventually.
Do you know if length of history of an individual card relevant? If not, no point me getting a card to keep as s back up long term.
 
It may be less relevant, but it's certainly not 'irrelevant'.

I wonder when all Australian financial institution are reporting everything that is required for CCR, whether we'll see a big difference in the make-up of credit scores, like something similar to how the US assesses their scores.

If so, I honestly can't wait for CCR to come into full effect as I've seen a number of discussions regarding US credit score make-ups, such as the pie chart the below. And it looks like your repayment history and amounts owed will make up a significant factor of your score, and enquiries have much less of an impact. So if Aus scores do get calculated like the US score under the new CCR reporting, I think my score will improve greatly - anyone else think there's would also?

credit_score_components_large.gif
 
I wonder when all Australian financial institution are reporting everything that is required for CCR, whether we'll see a big difference in the make-up of credit scores, like something similar to how the US assesses their scores.

If so, I honestly can't wait for CCR to come into full effect as I've seen a number of discussions regarding US credit score make-ups, such as the pie chart the below. And it looks like your repayment history and amounts owed will make up a significant factor of your score, and enquiries have much less of an impact. So if Aus scores do get calculated like the US score under the new CCR reporting, I think my score will improve greatly - anyone else think there's would also?

credit_score_components_large.gif
The new system is broadly like the US system although you credit file shows the credit "limit' rather than what you owe, and hence we also dont show credit utilisation. So aside from the amounts owed sections I think the above breakdown is probably largely correct for Australia. I have an idea one of the the bureaus actually published a breakdown somewhere.
 
I remembered when I cancelled my free for life Citibank Card with 15k limit - it was frankly useless card - my credit score dropped from 734 to 630 within a month. This is a card I had for 4 years. My guess is that by lowering my maximum credit limit, it had impacted on the score. Has it affected my ability get credit? No. Has my score improved by closing more cards since May, No either. Strangely enough.
 
I remembered when I cancelled my free for life Citibank Card with 15k limit - it was frankly useless card - my credit score dropped from 734 to 630 within a month. This is a card I had for 4 years. My guess is that by lowering my maximum credit limit, it had impacted on the score. Has it affected my ability get credit? No. Has my score improved by closing more cards since May, No either. Strangely enough.
Was it your oldest card as it might have been the length of credit history that caused it.
 
Was it your oldest card as it might have been the length of credit history that caused it.
So it seems like it may be worthwhile holding at least a card for the longer term for the benefit of your credit rating?
 
So it seems like it may be worthwhile holding at least a card for the longer term for the benefit of your credit rating?
The bureaus are notoriously secretive but yes this appears to form part of your credit score.
 
To my surprise, I was declined on the spot for the 40k bonus points credit card with Macquarie (only requested $6000 limit). It's my first time and the only card I have active is the Westpac Altitude that I applied for a month ago. I can't imagine it to be anything to do with my income and expenses given I'm a single high income earner who lives with parents. Oh well, time to put on the brakes for a while.
Don't be greedy. Me and the wife have been playing this game for the best part of a decade and aim for 1 new credit card each per quarter at the most. I've never been rejected, and she only twice in all this time. Pump the brakes and you'll be just fine.
 
Don't be greedy. Me and the wife have been playing this game for the best part of a decade and aim for 1 new credit card each per quarter at the most. I've never been rejected, and she only twice in all this time. Pump the brakes and you'll be just fine.
Do you cancel the old ones after 3 or 6 months?
. i.e. how many do each of you have on the go at the one time?
 
Do you cancel the old ones after 3 or 6 months?
. i.e. how many do each of you have on the go at the one time?
We normally have a 'keeper' each. One would be an AMEX giving you 1.5 points per dollar, and the other would be a VISA or MC good for 1 point per dollar. Thats for everyday spend. And we'd have one each which we cycle through purely for the signup bonus, which is usually cancelled as soon as the points safely hit our accounts. Combined, this is good for about 500,000 points between us per year, which is usually enough for 2 return business class flight anywhere in the world.
 
As Amex (and many others) are currently not contributing detailed info, how would they know the length of time you have held those cards?

I also understand that privacy concerns mean that we won't ever have a similar 'amount owing' and 'percentage of available credit used' like they do in the US
 
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As Amex (and many others) are currently not contributing detailed info, how would they know the length of time you have held those cards?
They are contributing application details (and the date on which you applied). While I agree application does not equal actually still having the card, companies do make assumptions on the basis of applications.
 
Was it your oldest card as it might have been the length of credit history that caused it.

That card was indeed, my oldest card with 15k limit. I had it for 4 years.

Of all the other 15k cards I had, NAB, ANZ didn't drop my score much when it was cancelled. even cancelling the 8k go mastercard (silly cough, i know) didn't do anything to my credit score. ALl those cards I have had only <1 year.
 
Not consistently.
This is true but it appears that the only reason Amex dont go to the credit bureaus is when they have their own data on you. Which kind of makes sense in a "negative" credit environment but less so in a CCR environment. Personally I think this is all a bit moot - Amex are going to be contrbuting CCR very shortly.
 
- Amex are going to be contrbuting CCR very shortly.

Didnt know that was coming soon. I suspect I'll gain on the reliability but lose more on the credit limits.
Any idea how Charge cards will be dealt with in the new system?
 
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