Hi Guys
I have been applying for credit cards like the Coles one for $100 , commonwealth one and anz one for points !! I don't use them and always pay in full before due date !! However, because I am applying and cancelling credit cards and jumping on deals like a true ozbargainer , would that affect my credit score towards mortgage etc or in general in future ? Thanks !!
Credit history / score advice
dealover on 31/01/2017 - 21:31
Comments
yes
No
yes
useful stuff people
He asked a closed question.
And neither of you gave any explanation for your response.
He didn't ask for an explanation. I've edited my post now.
Yes and No for me.
I was loyal to Citi then Bankwest rewards for about 5 years each, paying it off every month.
Then I got on the churn mid 2016.
My score was 636.
Got Plat Edge in May '16. 636.
Got NAB Plat in Nov '16. 775.
Got ANZ QFF Black in Dec '16 (doesn't show on credit report). 775.
Got ANZ Travel Adv Jan '17. (does show) 755.
Hope that gives you some idea.
Simply speaking, it depends on how quickly you get those cards. I think that has a big effect. Then your income and your liabilities are taken into account. I find if your income continues to grow each year, then its not too big of a deal.
Applying for credit/frequency of applications of does impact your credit rating. You can apply for a free credit report with various & they 'll email it to you within 24 hours.
Banks etc are moving towards more advanced credit reporting, which captures credit limits/payments made on time/late payments etc. So that it had a more rounded view (eg. You could 10 credit cards with a $1k limit each as opposed 1 card a $20k limit, but many lenders might think you excessive credit out there with the 10 cards.
Generally speaking, if your credit rating is towards the top end of the scale, applying for a couple of cards won't put a don't in your rating.
Just check yourself…. Get free report from veda
I think yes. I also apply for cards, get the points and cancel, and my credit score has been going down. I pay all my debts in full by the due date of the month they are incurred. I have ordered my full credit report so once I get it I will be able to confirm what is causing the decrease in my score. Until then, you should order yours too. It is free once every 12 months or you can pay if you want it more frequently (from Veda).
You can get a monthly report of your credit score for free on Credit Savvy. They give you a lender's risk assessment score and rating based on your credit application history (eg. below average, okay, good, very good or excellent).
A good example of why lenders in Australia don't place much significance on credit scores (last time I checked), so although it might fluctuate, it would have little (if any) impact on their decision making.
EDIT sorry, this was supposed to be a response to pantsparty's post.
It does impact because the Australian credit system is a crap. Banks only report the fact that they give you a credit card and that’s it. Another bank or any other structure who checks your credit score (each check also is logged and negatively impacts your credit score) only sees that you was approved or declined for a credit card with some limit. They don't know how you pay this credit card, how it was cancelled (by you or by the bank because you didn't pay it), etc. Basically, if you have 5 credit cards and regularly pay them you will have the same score as a person who has same 5 credits and doesn't pay them. From this point of view US credit system is much better as banks report much more information including the information about how you pay your credit cards. I read somewhere that Australia is going to change this and make it similar to US, so, will see.
Thanks for this. It lead me to this: http://www.smh.com.au/business/consumer-affairs/credit-repor…
Which I am now pursuing. I requested my file in Aug 14. And paid the $69.95. going to chase up some $$.
No. There's plenty of previous threads on this exact topic already (on this website and others) so I haven't bothered to elaborate.