Credit file & Credit card churning

[Beta4Me]

100% agree. Now in debt to a house, credit file (picture on previous page) went from good to VERY good.

That sounds like Veda!
Just remember, when using this strategy, not to apply for 5 mortgages. Because then you look desperate and it's a negative. A single application looks good though

 

[PLANT]

Um the mortgage thing sounds american to me... Sub prime anyone?
So Citi signature, Anz black last year and Amex Edge this year. Am I pushing it to apply for NAB premium this month?

 

[coles525]

Fraid it's Aussie. I t quotes that some loans/debts can give a good mark (my words not veda's).

 

[cove]

I just got rated as good and Mrscove came in as very good. In the US I am 789 out of 830 which is in the excellent range.
I guess my hundred plus page application for the Qantas Credit Union CC for a $25,000 credit limit dropped my score. Not too worried about it as credit cards are just parking areas to earn as many frequent flyer points/miles as possible and I pay them to zero each month.

 

[burmans]

Finally, I wonder whether the new financial reporting rules have come in, whether the banks are sharing your current limit with prospective lenders, and then you getting denied based on your 'credit file'.

(Those more experienced than I, if I have erred in any of the above, please correct me).

This is correct, and lets be very clear it is limit not balance!So those who might have high limits (or indeed cards) they are not using, later this year will be the time to consolidate, I've already started. I suspect if the OP is actually making payments on the bills he will look a lot better under CCR as applications will become a minor factor.

 

[burmans]

They see it as a positive credit-seeking activity. Bit odd but some logic to it.

I can give you some more detail here. While it may seem odd, both the credit bureaus and credit providers have considerable research on the behaviour of those with loans. Statistically people with mortgages are more likely to be good payers, and at the other end of the scale those with unsecured and in particular pay day type loans are likely to be bad payers.

Why, well I think the pay day answer is easy, i.e. people who go to pay day lenders are already likely to be in stress but even just unsecured lending is more likely to be defaulted, the fact there is no security is I'm sure a factor.

But why do people with mortgages become better payers, well I'm not sure there is clear research. But l firstly I think for many gettting a mortgage is a sign of financial maturity and most people take that seriously, the fact it is secured and they could lose their house is undoubtedly a factor and that sense of financial maturity seems to spill over to other borrowings as well.

 

[DeKa]

My score went up nearly 100 points with a mortgage application.

 

[Pele]

Gday

Coles525 or anyone else who has the veda monthly scorecard subscription- when you initially subscribed do they provide a history of monthly scores or does it only begin from when you subscribed? I am interested in subscribing but would like to know the monthly fluctuations of my score over the past 2 years or so.

Thanks.

Pele.

 

[coles525]

It only actually started less then a year ago. Probably as part of the new credit files upgrades.

I would expect that you will get the history from the end of month when it began. But.... I could (doubt it!) be wrong.

 

[coolkid101]

It only actually started less then a year ago. Probably as part of the new credit files upgrades.

I would expect that you will get the history from the end of month when it began. But.... I could (doubt it!) be wrong.

i just signed up 2 months ago and as coles said i only got a history from when i signed up.

 

[zainman]

I would have churned Velocity points earning cards. At least the 350,000 would have actually been worth a lot more!

 

[Isochronous]

I went on the Dun & Bradstreet site but it appears not to be free. How do I get that credit report without paying for it?

 

[coles525]

must provide a free copy.

just takes weeks.

search dun & Bradstreet free credit report.

 

[andye]

...But why do people with mortgages become better payers, well I'm not sure there is clear research. But l firstly I think for many gettting a mortgage is a sign of financial maturity and most people take that seriously, the fact it is secured and they could lose their house is undoubtedly a factor and that sense of financial maturity seems to spill over to other borrowings as well.

The other thing is that an (Australian) mortgage application is likely to be a far more rigorous check of your financial situation than any credit card provider is likely to perform*. It also shows that you can accumulate sufficient funds for a deposit

*I hear those who have applied for the Qantas CU card may disagree

 

[DeKa]

I went on the Dun & Bradstreet site but it appears not to be free. How do I get that credit report without paying for it?

Note the free report doesn't give you your score - only a list of what you applied for.

 

[coles525]

D&B as far as i know doesnt supply an actual score like veda.

 

[Cruiser Elite]

Never forget what Confucius said re Credit Cards - "Churn and burn ..... churn and burn ....."

 

[PLANT]

No Citi Sig offer at the moment?
Looked for a mate!

 

[Isochronous]

I'm finding the Credit Savvy website a useful tool for getting credit score.

 

[andye]

I would have churned Velocity points earning cards. At least the 350,000 would have actually been worth a lot more!

I've stopped collecting QF points but wondered what Velocity would offer when compared with a QFF 280K J One World Explorer award. Serious question