How viable is "travel hacking" in Australia?

[williamsf1]

Card churning can affect your credit rating. All those applications show up on a Credit Reference.

Does anyone have experience of issues related to churning cards? I am a recent convert to churning ( both VA and QF direct earn cards)... I normally do the qualifying spend and keep for 9 months ( if a fee associated) and then cancel the card . I always pay off the card on time ( and sometimes the accounts are in + credit)

I have never been declined a card or home loan.

has anyone on AFF been declined a credit card because of churning only ?

 

[burmans]

Does anyone have experience of issues related to churning cards? I am a recent convert to churning ( both VA and QF direct earn cards)... I normally do the qualifying spend and keep for 9 months ( if a fee associated) and then cancel the card . I always pay off the card on time ( and sometimes the accounts are in + credit)

I have never been declined a card or home loan.

has anyone on AFF been declined a credit card because of churning only ?

There have been reports of people being declined for cards, but noone really knows why and the banks aren't required to tell you the exact reason, aside from telling you that your score is one of the factors and the no. of applications is one of the factors in your score.

 

[aaflyer]

Slightly o/t but I find the lack of information on the new credit reporting process a little disturbing.

There appears to be no list of how to actually repair your credit (ie, take these steps and things will improve), just links to expensive 'credit fix' agencies, which are showing up to be large scams.

Obviously the best solution is to pay your debts on time and never default, but when you have a poor credit rating, no one seems to be able to offer a solid path towards repair (even if it takes a year or three).

Then there's the whole 'veda score' they have invented to sell as a number to anyone offering credit. There's also very little evidence in Australia as to say if churning will hinder your credit, but most common sense theories say that less credit enquiries on your file is better.

 

[dodgeyhack]

In hate the term hacking, it has illegal and immoral connotations but seems to have gained widespread acceptance.

I think of it more in terms of a skillful user of a computer, which is an alternate definition and one that I think is actually too narrow - the original hackers imo were skillful users of any electronic or mechanical system - some who exploited those systems illegally and this led to the other definition of hacker that you are referring to.
I'd consider a travel hacker to be someone who is a skillful user of a system of rules.

 

[andye]

Slightly o/t but I find the lack of information on the new credit reporting process a little disturbing.

There appears to be no list of how to actually repair your credit (ie, take these steps and things will improve), just links to expensive 'credit fix' agencies, which are showing up to be large scams.

Obviously the best solution is to pay your debts on time and never default, but when you have a poor credit rating, no one seems to be able to offer a solid path towards repair (even if it takes a year or three).

Then there's the whole 'veda score' they have invented to sell as a number to anyone offering credit. There's also very little evidence in Australia as to say if churning will hinder your credit, but most common sense theories say that less credit enquiries on your file is better.

There may be potential for the new systems to actually be better for credit repair. In the UK, the Credit Files show a history of ontime repayment and that seems to increase your chance of obtaining credit-i.e a regular repayer with no defaults will often be seen to be a better risk than someone who hasn't had any credit for some time.

I've recently started paying to see my Veda score monthly-it goes down a bit when I've made card applications.

I've been turned down for a card twice-the first was within six months of immigrating and the second was just after getting an Amex while renting a new house every 14 months or so.

Applying for short-term 'payday' loans is apparently pretty disastrous (as well as innumerate)

 

[burmans]

Slightly o/t but I find the lack of information on the new credit reporting process a little disturbing.

There appears to be no list of how to actually repair your credit (ie, take these steps and things will improve), just links to expensive 'credit fix' agencies, which are showing up to be large scams.

Suggest you have a look at this site.

Credit Smart

This may help a bit. The government should have been the ones doing the educating but they declined, but ARCA has done a decent job. While many are cynical of banks I can guarantee that the banks actually do want people educated on how to get a good credit rating (because the more people managing debt well the more opportunities to lend to good customers) but are a bit reluctant on exposing the credit scoring methodology given some can and will game it (as proven in America causing the GFC).

Obviously the best solution is to pay your debts on time and never default, but when you have a poor credit rating, no one seems to be able to offer a solid path towards repair (even if it takes a year or three).

There are plenty of not for profit agencies who do this. They just don't advertise as much as the credit repair guys who incidentally everyone regards as scum (the Privacy Commissioner, the credit providers, FOS and COSL, the customer advocates), everything they legitimately do can be done free, people just don't know how.

Then there's the whole 'veda score' they have invented to sell as a number to anyone offering credit. There's also very little evidence in Australia as to say if churning will hinder your credit, but most common sense theories say that less credit enquiries on your file is better.

Actually Veda does say that this is a factor, see link.

How is my VedaScore calculated? | Your Credit and Identity

 

[yoyo]

has anyone on AFF been declined a credit card because of churning only ?[/QUOTE]

The only decline I have ever had was from a jetstar card. I always pay my card off each month and had recently signed up for another card so maybe they saw me as a churner. I called them but they refused to tell me why I was declined. I was rather annoyed at the time.
If there is a sign up bonus and no annual fee for the first year, I always do it, to me that is a no-brainer. Even a deal like the current amex platinum for 90,000 points costing $1200 is a good deal imo because it is a relatively cheap way to buy points.

 

[lovetravellingoz]

In hate the term hacking,

So do I. I describe myself as a Points Runner.

 

[Isochronous]

That's great to hear Yohy. I may be moving over to HK later in the year and was worried that any thing I learn about points accumulation may be redundant there. Do you know any good points websites that focus on HK?

If you can read Traditional Chinese there is hongkongcard.com

HK market is disappointing in the sense few cards offer the '30k miles for signing up' type offer you see in US and Aus. Right now I just opened a DBS Black MC because for the first 2 months it earns at HK$2 per Asia Mile before dropping to HK$6.

 

[capitano]

Not sure if this has been posted before, but this website (www<dot>getcreditscore<dot>com<dot>au) (sorry but I'm unable to post links yet) was reported in SMH as giving free credit scores, and it seems to work. As someone who 'churns' cards I can say that multiple applications do seem lower your score. :-|

 

[andye]

Not sure if this has been posted before, but this website (www<dot>getcreditscore<dot>com<dot>au) (sorry but I'm unable to post links yet) was reported in SMH as giving free credit scores, and it seems to work. As someone who 'churns' cards I can say that multiple applications do seem lower your score. :-|

The site was down for at least the last 48h (wanted to check for Mrs andye's NAB application) . I managed to get a score out of them 3 times before they said I'd used up my free goes-I now have a subscription to veda which sends the score monthly

 

[burmans]

The site was down for at least the last 48h (wanted to check for Mrs andye's NAB application) . I managed to get a score out of them 3 times before they said I'd used up my free goes-I now have a subscription to veda which sends the score monthly

It does say in the small print you can only do one a year, appears they have actually started enforcing!