So 28° now has an available Cash limit as well as the basic credit limit

[AdMEL]

Be interesting to see how the new credit reporting system treats this in March.

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[/FONT][FONT=Tahoma, Calibri, Verdana, Geneva, sans-serif]I understood the whole convoluted process until it got to the part about the 2nd balance transfer from Citibank AFTER 15k had been taken out of StG, transferred to 28d, then withdrawn to pay off the 15k credit card debt on Citibank. At that point, Citi has a 0 balance. Why then initiate another balance transfer? In that example, which bank has the low interest balance transfer offer you are taking advantage of?

Seems like you were using the 28d as a proxy go between credit card account as that is the only credit card with the right length of credit card numbers(which other credit card providers validate for when doing a balance transfer) AND had no fees for cash advance? [/FONT]
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The new credit reporting regime shouldn't affect this i don't think. From what i read on the changes, the current balances of credit card accounts won't be reported, just the credit limit applicable to the account[/FONT]

I'm not so sure that is correct. My understanding is one of the things that will be reported is repayments, though I'm not sure how this will work for credit cards, or whether its applicable.

As markis10 notes, it will be interesting to see.

There's a new system coming in? ****, better do some more applications before then!

Are you serious? Comes into effect in March. Balances and repayments of all credit facilities from financiers (utilities not affected) for last 2 years will be able to be shown on credit file.

 

[Ghostdunks]

I'm not so sure that is correct. My understanding is one of the things that will be reported is repayments, though I'm not sure how this will work for credit cards, or whether its applicable.

As markis10 notes, it will be interesting to see.

Yeah, repayment history will be reported(as per Privacy fact sheet 16: Credit reporting), however, the actual current balance of the credit card won't be, from my reading of of the new fields being added(The five new data fields | Veda):

Date account opened
Current Limit of account
Nature of credit account
Date account closed
Account payment history (licensed credit providers)

The current limit of the account will probably be updated to VEDA/other credit reporting agency, as it changes. Doesn't happen too often that a credit limit on a card will get changed so that seems reasonable to be communicated to the credit reporting agencies. The current balance on the card however, changes a lot, and would be too much to communicate and keep up to date to the credit reporting agencies.

 

[AdMEL]

Yeah, repayment history will be reported(as per Privacy fact sheet 16: Credit reporting), however, the actual current balance of the credit card won't be, from my reading of of the new fields being added(The five new data fields | Veda):

Date account opened
Current Limit of account
Nature of credit account
Date account closed
Account payment history (licensed credit providers)

The current limit of the account will probably be updated to VEDA/other credit reporting agency, as it changes. Doesn't happen too often that a credit limit on a card will get changed so that seems reasonable to be communicated to the credit reporting agencies. The current balance on the card however, changes a lot, and would be too much to communicate and keep up to date to the credit reporting agencies.

You seem to know a lot about this! Thanks for the links.

It seems it will only show whether a repayment has been made on time or not, which in the case of the credit card, would be the minimum payment amount.

 

[Kieran2274]

Another twist to the saga. Apparently 28 Degrees now has an available Cash withdrawal limit as well as the available credit limit. [snip] Not happy. I will call them again next week before I go overseas and I want the cash withdrawal feature to be made unavailable on my card.

Wow! Some pretty unpleasant posts this generated, poor JohnK. The man didn't ask for alternatives, or for personal assessments for that matter, he was simply expressing disappointment about a so-called *enhancement* to a product he previously liked. The changes are a *downgrade* so let the poor bloke have his grumble about it, it should be no skin off your nose.

If he had asked for suggestions for other options, there was still no need to make criticisms of his personal choices to date. Just relax folks.

 

[Pushka]

Yeah, it happens like that sometimes on these boards.

 

[Kieran2274]

So I gather lol. Oh well, we all have bad days

 

[burmans]

Are you serious? Comes into effect in March. Balances and repayments of all credit facilities from financiers (utilities not affected) for last 2 years will be able to be shown on credit file.

It will take a bit longer than March for all this to take affect, the key is the wording will be "able" to be shown. This is a big change for credit providers and most are concentrating on the (large) compliance implications and very few will be contributing account and repayment history day 1, in fact it will take probably 9-12 months before all are in the system though clearly all credit providers are keen to get this in place.

Also 24 months of history will take awhile to build up, there is no legal requirement to backload data (in fact there are limits on how much can be loaded).

Oh, and yes definitely it's limit being reported not balance, credit providers tried to convince the government it should be balance but failed.

You should see more info on this next few months, credit providers will be notifying customers about now ( a couple have started) and there is an industry website explaining it all.

 

[rweir]

what makes you think most of the top-tier lenders won't report the maximum permitted amount of repayment history - from December 2012?

 

[AdMEL]

It will take a bit longer than March for all this to take affect, the key is the wording will be "able" to be shown. This is a big change for credit providers and most are concentrating on the (large) compliance implications and very few will be contributing account and repayment history day 1, in fact it will take probably 9-12 months before all are in the system though clearly all credit providers are keen to get this in place.

Also 24 months of history will take awhile to build up, there is no legal requirement to backload data (in fact there are limits on how much can be loaded).

Oh, and yes definitely it's limit being reported not balance, credit providers tried to convince the government it should be balance but failed.

You should see more info on this next few months, credit providers will be notifying customers about now ( a couple have started) and there is an industry website explaining it all.

I agree with some of what you note, however ...

Whilst it comes into effect in March, it has been some time in the making and financiers have known about it since it was it was mooted.

My previous post was actually incorrect - whilst going forward repayment history going back 2 years will be shown, initially, it will only be back to December 2012.

Given it's in the best interest of financiers, I would expect that most would load the data onto credit files at, or soon after March. After all, they already have the data! And as you said, credit providors were driving a lot of this!

Would you please post a link to the website you refer to - I work in the finance industry and have not heard of such a thing. You also seem to know a lot about it!

 

[JohnK]

Surely the interest charges outweigh the withdrawal fees? Is it just a matter of principle or something?

I haven't done the exact numbers but 4% withdrawal fee on $10,000 worth of withdrawals is $400? I am probably paying $20-$30 in interest everytime I need to do one of these types of balance transfers.

If he had asked for suggestions for other options, there was still no need to make criticisms of his personal choices to date. Just relax folks.

Not a problem. The trend on this forum recently has been for people to jump down peoples throats discouraging new posters from posting. It wasn't always this way. It was actually a very friendly forum. More like Flyertalk now.

I am lucky I have thick skin.

 

[burmans]

what makes you think most of the top-tier lenders won't report the maximum permitted amount of repayment history - from December 2012?

a) because they have to notify customers before reporting, the first top tier lenders only started notifications last month and some have yet to start

b) because they dont have to, the changes to the privacy act allow reporting of RHI, it doesnt mandate it. Backwards reporting is an issue for many lenders, their systems were not setup correctly to do this, so they are only likely to report going forward (and possibly a small amount of historical information)

 

[burmans]

Would you please post a link to the website you refer to - I work in the finance industry and have not heard of such a thing. You also seem to know a lot about it!

Not publically available yet, should be within this month and when available I will post.

And yes I do know about it, I work in the credit industry but more specifically in this space.

 

[Diesellife]

John K, wouldn't you still be able to use the 28 degree card to do the trick?
I know it has a cash limit but can you do it in multiple times - however, it can be very annoying...

 

[JohnK]

John K, wouldn't you still be able to use the 28 degree card to do the trick?
I know it has a cash limit but can you do it in multiple times - however, it can be very annoying...

The 4% cash advance fee kills off any advantage.

I have been able to adapt and have managed to do the next round of balance transfers.

 

[Baysider]

You aren't running a money laundering operation are you JohnK ?

 

[JohnK]

You aren't running a money laundering operation are you JohnK ?

I wish I had money to be able to launder! :-|

 

[burmans]

Not publically available yet, should be within this month and when available I will post.

And yes I do know about it, I work in the credit industry but more specifically in this space.

As promised

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