Total Credit Card Limits to Affect Credit Rating from 1st July

Qroozn on 09/02/2018 - 06:59
Last edited 09/02/2018 - 09:50 by 1 other user

So I heard this on the radio and then went to check online.
From July 1st lending institutions will be forced to look at the total of your credit card limits (disregarding whether you pay them all off on time or not)

I would like to share something with you

Interesting to read that the Average “ TOTAL credit card limit” is $9,000

Such is the ozbargain life that mine is $35.000.
-15k Citibank Signature for life (was great rewards, insurances, and still free)
- 5k 28 Degrees MasterCard (foreign transactions)
-15k ANZ Black ( great bonus airline/reward plus introductory points).

Perhaps the ozbargain credit card hoarding is coming to an end.

Financial

Comments

        • hamwhisperer on 06/03/2018 - 16:52

          @starburstyellow: I wouldn't be surprised if I'm twice your age, plus I only ever paid interest once in my life, ever. and I was angry that I messed up.

        • starburstyellow on 06/03/2018 - 19:09

          @hamwhisperer: try me.. 36 :)

        • hamwhisperer on 07/03/2018 - 11:21
          +1

          @starburstyellow: +4

        • burningrage on 09/03/2018 - 16:30

          LOL. This page is hillarious vs CreditSavvy.

          There is no history other than a score and tells what's good and what's not.

          Experian CreditSavvy does show the enquiries, credit owned, etc.

        • hamwhisperer on 04/04/2018 - 16:52

          @starburstyellow: For some reason they've emailed me and bumped me from 905 to 924, dunno if I trust their data to be honest.

          Also I lost my damn HSBC 2 factor tag, I think (argh!) so I don't know how much to pay them on my credit card that I barely use.

        • starburstyellow on 05/04/2018 - 13:25

          @hamwhisperer: wow nice score. Yeah I wouldn't trust it either but nice to be up there. Im
          Still on about 7xx. :(

  • Donaldhump on 08/03/2018 - 21:08

    My credit score has gone from 700 to 630and I haven’t even done anything

    I have a 1k limit cc.

    Please explain

    When do enwuiries expire. I’m nearly 100 years old

  • OzFrugie on 09/03/2018 - 00:27

    If I close a credit card, will this be recorded in my credit profile and hence improve my credit score (currently or in this new upcoming changes)?

    • Sharp on 09/03/2018 - 11:03

      see my comment below.

  • Sharp on 09/03/2018 - 10:57
    +1

    Just an update, I cancelled my NAB credit card on 28 Feb. Today, I received an email from CraditSavvy saying "There's been activity on your file". I went and check and my credit score dropped further 50 points to 520 (below average)!!! Credit Savvy's algorithm obviously f'ed up. Even if you cancel a credit card your credit score drops.

    Getcreditscore, on the other hand, increased 11 points, from 651 to 662 (Good), however I'm not sure if it's related to CC cancellation.

    • OzFrugie on 09/03/2018 - 11:04

      Wtf thats screwed up! Are you going to ask CreditSavvy (Experian) about that? Does not make sense at all..

      • Sharp on 09/03/2018 - 11:20

        I understand these online companies get the source file from Experian and turn it into a number. They all use different methodology and produce a different number. So I'm not planning to waste time on fixing CreditSavvy f'ed up methodology. I'll just stop using them/visiting their website and if more people do the same they may get the message.

    • burningrage on 09/03/2018 - 11:16

      Maybe your score drops because you made an "Activity" and the website doesn't like that.

      My score looks shit as well despite only showing one credit card but lots and lots of enquiries/activities. :-)

      • Sharp on 09/03/2018 - 11:22

        Yes I agree. Creditsavvy drops your score after every activity. It doesn't matter what activity it is, which is stupid.

        Bank updates your credit file with 100% repayment history, Creditsavvy score drops. You cancel a credit card, craditsavvy score drops etc etc.

        • frugalbat on 09/03/2018 - 11:25

          can you do anything about that and do home lenders use Creditsavvy score to assess the loan amount ?

        • burningrage on 09/03/2018 - 11:29

          Maybe the algorithm hasnt caught up with positive reporting.

        • OzFrugie on 09/03/2018 - 11:34

          @mty:

          This is what I am wondering too.
          Which score(s) do banks (and other lending organisations) use for customers' credit scores?
          Or do they maintain their own somehow (which I doubt as otherwise it does not justify all these agencies' existence)?

        • Sharp on 09/03/2018 - 11:51
          +2

          @OzFrugie:

          My wife used to work for Bankwest and she'd get the full credit file from Experian and make a decision based on bank's criteria. These online sites are just for end users (they target to get more clicks and ad revenue) I don't believe any bank would look at them.

        • Sharp on 09/03/2018 - 11:51

          @burningrage:

          most likely (at least for CreditSavvy).

        • OzFrugie on 09/03/2018 - 12:06

          @Sharp:

          Thanks for the insight, Sharp.

          Are you also saying that although CreditSavvy uses Experian data, it does not necessarily mean that the score shown in CreditSavvy is the same as the score that the bank(s) see from Experian directly?
          If so, then I don't get why agency like CreditSavvy will do rescore (using their own algorithm etc), not using the score which they get directly from Experian??
          It just adds complexity to their process and with what benefits?

        • Sharp on 09/03/2018 - 12:14

          @OzFrugie:

          There is no one overall score on the Experian file. Just your history. So these online sites try to convert your history file into a number.

          You can request your file for free from Experian. It takes around 10 days to get it.

        • OzFrugie on 09/03/2018 - 12:38
          +1

          @Sharp:

          Are you sure about that?

          I ordered my credit profile directly from Experian and in the report I received from them on page 2, it states my credit score which is consistent with what I can see in CreditSavvy..
          This was in January this year..

        • Sharp on 09/03/2018 - 12:45

          @OzFrugie:

          I received one just last week I couldn't see a score only the number credit inquiries etc. I'll check again.

          Edit: Confirming there is no score. But mine is from equifax (Veda).

        • OzFrugie on 09/03/2018 - 12:48

          @Sharp:

          OK, pls report back.

          If the score is there like mine and consistent with CreditSavvy score (again like what I observe), then it is very concerning that your CreditSavvy credit score drops after closing credit card, which means your Experian credit score also drops!!

        • Sharp on 09/03/2018 - 12:50

          @OzFrugie: see above

          If that was true all of these online credit sites would have reported the same score. They all report different numbers.

        • OzFrugie on 09/03/2018 - 14:09

          @Sharp:

          From my knowledge, each agency uses different providers.
          e.g. CreditSavvy uses Experian, getyourscore uses Veda (I think), etc.

    • Other on 09/03/2018 - 23:07

      hehehe - perhaps you have too little credit.

    • tim_geo on 22/04/2018 - 00:53

      With positive reporting you might lose some score if a card with long positive repayment history is cancelled… potentially. Having said agree banks have their own credit scoring model independent to the credit reporting agencies.

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