Credit Card Churning May Get More Difficult.

[rock86]

Didnt know that was coming soon. I suspect I'll gain on the reliability but lose more on the credit limits.
Any idea how Charge cards will be dealt with in the new system?

Good question, it will be interesting how they deal with charge cards given they have no limit.

In regards to the supplying of CCR data, I got the below from finder & credit savvy

This means that by 1 July 2018, the major banks are required to share 50% of your credit data with credit bureaus. This will be increased to 100% by 1 July 2019. While only the four major banks (NAB, CommBank, Westpac and ANZ) are required to share this data, other credit providers will likely also share data within the same time frame to remain competitive.

According to draft legislation released on 9 February 2018, banks will have 90 days from 1 July both in 2018 and 2019 to share the required data. For the first deadline (1 July 2018) they will be able to choose which 50% of comprehensive data they provide.

Some providers have already started providing this information for credit cards, including NAB, Citibank and HSBC.

CBA, Westpac and ANZ are expected to commence in the 2nd half of September.

Other credit providers are then anticipated to follow over the coming year and the Big Four Banks will also be adding other credit product information (like home loans) too.

 

[burmans]

Didnt know that was coming soon. I suspect I'll gain on the reliability but lose more on the credit limits.
Any idea how Charge cards will be dealt with in the new system?

It's been about 4 years since I read the Privacy Act or the Credit Code but I have an idea that charge cards aren't covered because you have to pay those off in full each month and hence they aren't a credit instrument.

 

[rock86]

It's been about 4 years since I read the Privacy Act or the Credit Code but I have an idea that charge cards aren't covered because you have to pay those off in full each month and hence they aren't a credit instrument.

I haven't read through the privacy act, but on the surface of it that certainly makes sense regarding the classification of charge cards.

 

[Demonoid]

Latest information in the Financial Review today...I have pasted the first few paragraphs.
More Here: Banks to sign landmark data-sharing deal

Banks to sign landmark data-sharing deal
The major banks have finally agreed to provide their customers' repayment history to each other, signing a landmark data sharing agreement that will improve their ability to assess customer credit quality after the royal commission criticised them for making loans using estimates rather than actual data.

Acting on instructions from the prudential regulator and the federal government, the four big banks will sign on to the "comprehensive credit reporting" regime in the coming days.

The regime means that when a customer of one bank goes to another and seeks a loan, that new bank will be able to pull a credit report that shows the full repayment history of each of that customer's accounts held at other banks. It will therefore allow banks to get a fuller picture of customers' total debts.

The repayment details of customers will be available, via the major credit bureaus, for two-thirds of all credit accounts in the short term, said the Australian Retail Credit Association, which has been managing the process for the banks. Initially, credit card data will be put into the system; within a year, all mortgages and personal loans will be added.

 

[burmans]

Latest information in the Financial Review today...I have pasted the first few paragraphs.
More Here: Banks to sign landmark data-sharing deal

Banks to sign landmark data-sharing deal
The major banks have finally agreed to provide their customers' repayment history to each other, signing a landmark data sharing agreement that will improve their ability to assess customer credit quality after the royal commission criticised them for making loans using estimates rather than actual data.

Acting on instructions from the prudential regulator and the federal government, the four big banks will sign on to the "comprehensive credit reporting" regime in the coming days.

The regime means that when a customer of one bank goes to another and seeks a loan, that new bank will be able to pull a credit report that shows the full repayment history of each of that customer's accounts held at other banks. It will therefore allow banks to get a fuller picture of customers' total debts.

The repayment details of customers will be available, via the major credit bureaus, for two-thirds of all credit accounts in the short term, said the Australian Retail Credit Association, which has been managing the process for the banks. Initially, credit card data will be put into the system; within a year, all mortgages and personal loans will be added.

This is quite amazing to me, I worked in this area about 6 years ago with the bureaus and credit providers managing programs to load CCR data, sat on committee's around the credit code and this reciprocity agreement. It's only taken 6 years for this to happen, largely as a couple of the big banks essentially had to be forced into it.

 

[deebens]

Just had a card from earlier in the year show up in Credit Savvy as closed.

Score went from 623 to 686.

 

[woodyren]

Despite 2 new cards this month and the associated credit enquiries my credit savvy score has risen from 635 to 725.

The score seems to have risen due to the recent addition of repayment history which has always been perfect but not documented in the past.

 

[SOPOOR]

Just had a card from earlier in the year show up in Credit Savvy as closed.

Score went from 623 to 686.

How do you check if a card has been closed on your file

I've closed heaps but none are showing up except one from last month

 

[GSP]

I've also had an increase in my CreditSavvy score due to them retrieving a few old cards and showing good repayment history.

 

[rock86]

Good to hear that the repayment history is making a positive impact, as it should.

I won't see how mine is affected for another 3 weeks when my monthly updates come through.

 

[gty222]

Good to hear that the repayment history is making a positive impact, as it should.

I won't see how mine is affected for another 3 weeks when my monthly updates come through.

Not me. On credit savvy with the addition of one card account with a perfect repayment history, my score went down by 17 points.

 

[deebens]

How do you check if a card has been closed on your file

I've closed heaps but none are showing up except one from last month

Sorry should have added, CBA, BankWest and ANZ have all added data in now.

In Credit Savvy click on the Credit Report Summary tab and then scroll to the credit accounts and relationships. If anything's been reported it will be in there either open or closed.

 

[SOPOOR]

Sorry should have added, CBA, BankWest and ANZ have all added data in now.

In Credit Savvy click on the Credit Report Summary tab and then scroll to the credit accounts and relationships. If anything's been reported it will be in there either open or closed.

Yeah I had a look.
Every aplkcation I've done shows up.
Howver I've applied and opened and closed 2 anz cards. But they're only showing as enquires

Actually, found it. But I have 7 cards. But my file says only I have one and that was closed recently


Weird

 

[SOPOOR]

Sorry should have added, CBA, BankWest and ANZ have all added data in now.

In Credit Savvy click on the Credit Report Summary tab and then scroll to the credit accounts and relationships. If anything's been reported it will be in there either open or closed.

Got an email from. Credit Savvy.
My score has gone up 80 despite the fact that cba, ANZ and NAB have added all their credit limits including one card with $100k plus limit

 

[burmans]

Got an email from. Credit Savvy.
My score has gone up 80 despite the fact that cba, ANZ and NAB have added all their credit limits including one card with $100k plus limit

It's not only your score you need to worry about, other lenders can see you have that 100K plus limit as well which would not help in assessments.

 

[SOPOOR]

It's not only your score you need to worry about, other lenders can see you have that 100K plus limit as well which would not help in assesments.

Definitely.

Will be cancelling it soon as I don't really use it. And now they refuse to waive the annual fee.
The card is my first one from when I was a pimply teenager on a student credit card

Bye bye cba,

 

[nickfromeastryde]

How long before a closed credit card product is removed. I notice that Citibank still have my Qantas Premier Platinum recorded even though I closed about 3 months ago

 

[rock86]

How long before a closed credit card product is removed. I notice that Citibank still have my Qantas Premier Platinum recorded even though I closed about 3 months ago

Pretty sure it'll stay there for two years from the closed date.

 

[nickfromeastryde]

Pretty sure it'll stay there for two years from the closed date.

Thanks, but surely shouldn't be recorded as an "Open" account

 

[rock86]

Thanks, but surely shouldn't be recorded as an "Open" account

Definitely not.

They should be updating the credit bureaus that you've closed the account, then you should see the repayment history but the account information saying closed.