Impact of residential status on CC Applications

[Isochronous]

Home owner/mortgage v renting v living with parents - does any of this affect credit card apps positively or negatively?

 

[Simo]

IMHO, none are credit card app killing but from my understanding when doing credit card apps everything is points based.

I do many applications for credit every day and the biggest thing I see is age as a real application killer.

I have seen people who are home owner/buyers and still get declined due to a bad credit file/issues.

 

[codash1099]

Home owner (with or without mortgage) indicates residential stability which is a big plus. No mortgage is obviously a bigger plus from a financial point of view, but the main point is that you are unlikely to skip.

 

[Isochronous]

IMHO, none are credit card app killing but from my understanding when doing credit card apps everything is points based.

I do many applications for credit every day and the biggest thing I see is age as a real application killer.

I have seen people who are home owner/buyers and still get declined due to a bad credit file/issues.

Too young or too old? In terms of bad credit file do you mean defaults/bankruptcy/consistently late payments or lesser factors like a high number of app in a short period (and whats the definition of high and 'short period'?)

 

[The Rok]

Too young or too old? In terms of bad credit file do you mean defaults/bankruptcy/consistently late payments or lesser factors like a high number of app in a short period (and whats the definition of high and 'short period'?)

More than six applications for a line of credit such as personal loan, car loan, mortgage, or credit card.




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[Isochronous]

More than six applications for a line of credit such as personal loan, car loan, mortgage, or credit card.




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In exactly a 12 month window? e.g. If one applies today (6 Dec) is it measured between 6 Dec 2011 and 6 Dec 2012?

 

[The Rok]

As its generally assessed by a computer I am guessing that its exactly 12 months, I'm just not sure of how much leeway said computers have.

The 6 applications per year is also a guide. Specific lenders and cards may have more strict or more lenient guidelines for individual cards.


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[Simo]

Too young or too old? In terms of bad credit file do you mean defaults/bankruptcy/consistently late payments or lesser factors like a high number of app in a short period (and whats the definition of high and 'short period'?)

The credit that I do it is mainly too young as just 18 and a very little bit.

More like they have a past debt and it has not been paid off.

Also employment status will make a difference as well.

 

[Isochronous]

I'm just wondering if hypothetically say, between 1 November 2011 and 1 November 2012 for arguments sack, you made 6 apps, but once you get to say, 10 November, the first 2 apps drop off, then will it only show up as 4 in the credit check? As you mention Rok I'm curious about the leeway/buffer used.

 

[The Rok]

Honestly, I don't know. I switched from NAB to CBA recently and applied for a CBA Rewards Card and they didn't even do a Credit Check.

I just remember back in my day selling new homes seeing broker or bank credit reports.

Credit files in AU run from a scale of 0 - 1200. Each application lowers the score a bit, I'm not sure how much, maybe 40 points or do. Anything less than 600 will be an auto decline from most banks.

I do know of somebody with good income, no debt, no defaults, no existing credit cards, PR status and steady employment. She has 50 enquiries on her file over 4 years and subsequently couldn't get a cc with a $500 limit.


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[Isochronous]

Honestly, I don't know. I switched from NAB to CBA recently and applied for a CBA Rewards Card and they didn't even do a Credit Check.

I just remember back in my day selling new homes seeing broker or bank credit reports.

Credit files in AU run from a scale of 0 - 1200. Each application lowers the score a bit, I'm not sure how much, maybe 40 points or do. Anything less than 600 will be an auto decline from most banks.

I do know of somebody with good income, no debt, no defaults, no existing credit cards, PR status and steady employment. She has 50 enquiries on her file over 4 years and subsequently couldn't get a cc with a $500 limit.


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Then what were the 50 enquiries all for?

 

[The Rok]

As far as I know just credit cards, personal & car loans, plus I would probably imagine the usual stuff like mobile phone contracts and the like.

I have not seem her credit file yet so I can't be sure.


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