Veda Credit Scores and American Express Applications (esp Plat Charge)

[burmans]

Just had a look at my credit file. Is there a reason why Amex would access your file each and every months? Heard someone mentioned they experienced the same problem and whether this impacts the credit file in any way?

Its all to do with Responsible Lending legislation. Lenders have a responsibility to ensure they lend responsibly, not only when they lend to you but on an ongoing basis. These monthly checks are to see if you have suddenly gone out and acquired a whole lot of new loans which is regarded as an indicator of financial stress.

File Access's are recorded (as you can see) against your credit file but don't "impact" in the sense that they are not used in assess credit-worthiness or disclosed to other credit providers when you make an application.

 

[SOPOOR]

so is there a way to maximimse your credit potential when it comes to amex applications?

eg apply for multiple simultaneously? or if your credit has been un affected , eg they dont check, keep on applying?

 

[nightelves]

Yes an effective way to maximise your credit potential with Amex is to downgrade and upgrade your credit card instead of cancelling it all together. This way you will not need to create a new credit card application each time which in turn will affect your credit score. found out today that it was possible when I downgraded my Platinum Velocity card to a Platinum Edge without needing to create a new application while at the same time was able to pro-rata my fees from the Velocity Card onto the Platinum Edge.

An additional $200 travel credit for $65 annual fee. If I knew about this would have done it a bit early to avoid paying the annual fee completely.

 

[SOPOOR]

Yes an effective way to maximise your credit potential with Amex is to downgrade and upgrade your credit card instead of cancelling it all together. This way you will not need to create a new credit card application each time which in turn will affect your credit score. found out today that it was possible when I downgraded my Platinum Velocity card to a Platinum Edge without needing to create a new application while at the same time was able to pro-rata my fees from the Velocity Card onto the Platinum Edge.

An additional $200 travel credit for $65 annual fee. If I knew about this would have done it a bit early to avoid paying the annual fee completely.

ahh thats very good, obviously you wont be eligible for bonus points?

but very good to know

 

[nightelves]

ahh thats very good, obviously you wont be eligible for bonus points?

but very good to know

Well I might be will report back to you how it goes because if they have given me the $200 travel credit then there's a chance that there will be bonus points because it's a different reward program.

But for me it means my credit score stays in which can be used to apply for bonus signup elsewhere. Besides the earn rate will definitely compensate it.

 

[burmans]

Talking out what happen when Veda do finally get Comprehensive Credit Reporting here but there are plenty of helpful hints on the American Blogs about what will become more important, am giving this as it seems we very shortly will have this system

Firstly applications will become (probably much) less important. Applications are a bit of a proxy for how much debt you have, eventually with Comprehensive Credit reporting lenders will have a much better view of how much debt you have (note: they will be able to see credit limit no balance owed)
Secondly, corollary to No 1, keep your limits down to what you need
Thirdly (and this may be painful to some) close CC accounts you don't really need, though keep the oldest (age of credit file is a +ve factor)
Last but not least, make your payments on time. From memory good repayment history is about 35-40% of the credit score in the US.

 

[albyd]

Yes an effective way to maximise your credit potential with Amex is to downgrade and upgrade your credit card instead of cancelling it all together. This way you will not need to create a new credit card application each time which in turn will affect your credit score.

I've only been able to do a transfer once with Amex from Velocity Platinum to Platinum Reserve and that was a goodwill gesture given they'd 'posted' the Platinum Reserve app out to me a number of times and I hadn't got it.
Every other time, they've asked me to apply on the website and get re-assessed. Recently applied for the Explorer and they wouldn't do a product swap - said was set up for online applications only. They were currently considering allowing product swaps just like the big banks have always allowed. I won't be holding my breath they'll be doing it in a hurry.
Product swaps would be a great way of avoiding additional, unnecessary inquiries if you don't want any additional credit.

 

[nightelves]

Yeah they were willing to downgrade me from a Velocity Platinum to a Velocity Escape so I thought I'd ask the question. Was such an easy process with transferring fees and travel credit. Bonus points would be the icing on the cake but I wouldn't hold my breath.

Either way it allows me the opportunity to apply for both the Explorer and Platinum Edge with only one credit card application.

Anyone know if it's easy to lower the credit limit with an Amex credit card?

 

[albyd]

Makes sense not to worry about the sign up points especially when the bonus is small like On the edge - best to avoid unnecessary injuries - at least with the current system - until it evolves to have the same drivers as the US system.

 

[nightelves]

Now to start stocking up on giftcard for that 3pts per spend.

 

[burmans]

Makes sense not to worry about the sign up points especially when the bonus is small like On the edge - best to avoid unnecessary injuries - at least with the current system - until it evolves to have the same drivers as the US system.

This is why I have held off on latest application until I see score on new system and want to monitor how making some changes effect (e.g. new card application should now have less impact, card cancels should now have an impact).

 

[SOPOOR]

This is why I have held off on latest application until I see score on new system and want to monitor how making some changes effect (e.g. new card application should now have less impact, card cancels should now have an impact).

I'm curious. How long does it take for credit to be updated or when is the check made.

Is once it's approved. Certain enough to notice changes

As my score went up which really freaked me out

 

[andye]

I'm curious. How long does it take for credit to be updated or when is the check made.

Is once it's approved. Certain enough to notice changes

As my score went up which really freaked me out

Have you rechecked since? Response #214 offers a potential explanation

 

[SOPOOR]

Have you rechecked since? Response #214 offers a potential explanation

I was only approved last night tuesday

we applied sunday night, so yes that could be a possiblity im hoping for many more amex applications


I wonder how long Ishould wait until im sure its been updated

 

[exceladdict]

<snip>card cancels should now have an impact).

Didn't realise that would be an issue. Unfortunate as I'm at that stage of the cycle.

Reference (don't know if it's trustworthy): How to cancel a credit card - and close it without hurting your score

 

[burmans]

I'm curious. How long does it take for credit to be updated or when is the check made.

Is once it's approved. Certain enough to notice changes

As my score went up which really freaked me out

Unsure what you are asking, the current credit file effects you have made an application, given that (usually) they go to Veda for a credit check, Veda know about this enquiry immediately. The only real question here is how long this takes to be reflected in your score but understanding is that Veda are trying to make that near real time (the fact they are trying does not mean they have been 100% effective).

Didn't realise that would be an issue. Unfortunate as I'm at that stage of the cycle.

Reference (don't know if it's trustworthy): How to cancel a credit card - and close it without hurting your score

Payment history will stay in your file for two years with CCR.

 

[SOPOOR]

Unsure what you are asking, the current credit file effects you have made an application, given that (usually) they go to Veda for a credit check, Veda know about this enquiry immediately. The only real question here is how long this takes to be reflected in your score but understanding is that Veda are trying to make that near real time (the fact they are trying does not mean they have been 100% effective).
Payment history will stay in your file for two years with CCR.

oh ok, I sort of get it now,
I thought credit scores were instantly affected, like credit card balances,

I guess it could be from 1 minute up to a month before credit score is affeced

 

[Coxyb76]

I applied for my Free Veda Credit Report and it shows Amex inmy application. However nowhere on the report can I find a 'Score' of my credit. Any idea's

 

[nightelves]

For credit score you need to go here: https://www.getcreditscore.com.au/

 

[SOPOOR]

i just checked my score and its still teh same, increased by 5 to 756

not sure if im supposed to interpret that as to amex hasnt checked or or amex has checked but hasnt updated or my score has actually increased due to the application