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CC churning - equifax scores

rock86

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Hi all,

Fairly new to the CC churning scene (although I wish I had got on the bandwagon earlier though since the RBA made all of the changes!) and was wondering about movements in equifax scores.

Now I have been approved for 2 CC's of late and as expected my score subsequently dropped, however I have currently let a time period of 4 months 'cooling' before looking at even applying for another CC bonus.

In this time I have made all repayments on my home loan, bills etc. paid CC's fully however no change to my score whatsoever. There's no issue with my score (it's around the 840 mark) but I just thought for sure it would start creeping back up since I've been been meeting all my credit obligations.
 

blu

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Oct 8, 2004
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No one knows how those algorithms work. We keep each card at the minimum allowable credit limit. Our experience is that the credit score slowly decreases over time compared to where you started (as your credit exposure increases).
 

andye

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Hi all,

Fairly new to the CC churning scene (although I wish I had got on the bandwagon earlier though since the RBA made all of the changes!) and was wondering about movements in equifax scores.

Now I have been approved for 2 CC's of late and as expected my score subsequently dropped, however I have currently let a time period of 4 months 'cooling' before looking at even applying for another CC bonus.

In this time I have made all repayments on my home loan, bills etc. paid CC's fully however no change to my score whatsoever. There's no issue with my score (it's around the 840 mark) but I just thought for sure it would start creeping back up since I've been been meeting all my credit obligations.
You are probably at the maximum score for repayment reliability already. Your score is already excellent and it wouldnt put me off applying for more cards.
 

rock86

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You are probably at the maximum score for repayment reliability already. Your score is already excellent and it wouldnt put me off applying for more cards.
Thanks for that, no movement on score just seemed a bit weird on the face of it but what you have said makes complete sense to as why it hasn't gradually increased. :):)
 

Dr Ralph

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In this time I have made all repayments on my home loan, bills etc. paid CC's fully however no change to my score whatsoever.
I can't see any of this activity having an impact in the time frame you mentioned.
 

rock86

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I can't see any of this activity having an impact in the time frame you mentioned.
Ah ok, in your experience Dr Ralph (as I have seen on this site you are a frequent CC churner) over what kind of period of time would your scores increase for doing the right things (in a credit sense)?
 

Dr Ralph

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Ah ok, in your experience Dr Ralph (as I have seen on this site you are a frequent CC churner) over what kind of period of time would your scores increase for doing the right things (in a credit sense)?
Given this is a new criteria (IE. positive behaviour) I can't say for certain, but I think you are talking years rather than months for this type of positive behaviour to have an impact.
 

Lemon_Party

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Ah ok, in your experience Dr Ralph (as I have seen on this site you are a frequent CC churner) over what kind of period of time would your scores increase for doing the right things (in a credit sense)?
Dr Ralph has been an inspiration to my credit card behaviour...
 

rock86

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Given this is a new criteria (IE. positive behaviour) I can't say for certain, but I think you are talking years rather than months for this type of positive behaviour to have an impact.
Ok, thanks for that Dr Ralph. I think I will just apply for another CC for mrs rock and I then, especially if holding off is really going to have little effect.

Dr Ralph has been an inspiration to my credit card behaviour...
I bet, reading the forum he certainly knows his stuff!!
 

Dr Ralph

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Dr Ralph has been an inspiration to my credit card behaviour...
Really?

I hope that you've had some success in building your points balance. I enjoy trying to beat the banks :)

Remember there is enjoyment in spending those points as well :)

Ok, thanks for that Dr Ralph. I think I will just apply for another CC for mrs rock and I then, especially if holding off is really going to have little effect.
That's what I would do.

I'm going to have a close look at any NAB offerings and take advantage before they drop their AMEX.

I bet, reading the forum he certainly knows his stuff!!
I'm not adverse to making a mistake or two!

There have been some very generous members of AFF who over the past few years have shared their knowledge and I've been very appreciative of that.
 

burmans

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Given this is a new criteria (IE. positive behaviour) I can't say for certain, but I think you are talking years rather than months for this type of positive behaviour to have an impact.
They will eventually be able to collect 24 months of repayment history, but having said that more recent history would be weighted higher.
 

get me outta here

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Due to cc churning, I get Veda updates re my changed score but when logging the score has hardly changed from ~ 610, so I press on with the applications.
 

Lemon_Party

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Really?

I hope that you've had some success in building your points balance. I enjoy trying to beat the banks :)

Remember there is enjoyment in spending those points as well :)
You’ve definitely given me a lot more confidence in frequent applications... and it’s making a big difference to the trips we can make!
 

Dr Ralph

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You’ve definitely given me a lot more confidence in frequent applications... and it’s making a big difference to the trips we can make!
There's nothing to fear. At some stage everyone, including myself, will reach the limit for applications. Until then I churn whenever I can without fear of rejection - but I know it is coming :)
 

cove

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I have hit the limit with Citibank, American Express and Bankwest. Lucky there are others in the market.
 

rock86

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Just on the spending requirement for cards, has anyone ever utilised paypal to transfer friends money from a credit card and does this count as spending? Or I have noticed there is a travel card issued by STA that let's you load via credit card & bpay for only 1%, then any withdrawals from ATM's are free of charge.

Reason I ask is that looking to get the NAB Qantas Rewards Signature card for both my wife and I (2 x 90k bonus points and we get the cars for free due to having a home loan through NAB), but between us the $8,000 spend in 60 days could push it as we don't have any bigger bills on the way in the next few months.
 

Captain Halliday

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Just on the spending requirement for cards, has anyone ever utilised paypal to transfer friends money from a credit card and does this count as spending? Or I have noticed there is a travel card issued by STA that let's you load via credit card & bpay for only 1%, then any withdrawals from ATM's are free of charge.

Reason I ask is that looking to get the NAB Qantas Rewards Signature card for both my wife and I (2 x 90k bonus points and we get the cars for free due to having a home loan through NAB), but between us the $8,000 spend in 60 days could push it as we don't have any bigger bills on the way in the next few months.
A deposit on the next few months groceries should do it. ;)
 

robtemt

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I've given up on trying to figure out the scores. My Experian score in early 2016 (when I started paying attention) hovered around 726 (very good?) since buying our first home together in late 2015 at which point had refinanced separately owned properties, and purchased a new home.

A couple credit card applications here and there (1 every 2 months), didn't cause any changes. Suddenly, I applied for a NAB card, and my score dropped to 573 the next month! 1 month after that it went back up to 668 and sat there for 7 months (Nov 16 to May 17). We had this fear of the score going lower, so held back on applications for a few months, until in Feb 17 when we refinanced all of our loans, and immediately after started churning cards again. In June, after a new Amex application, a new Coles MC, and a Virgin Money card, the score jumped to 726, and last month up to 745. I basically apply for a new card and cancel another every 2 months.

We've never had any issue being denied a card, and the bank has never questioned our score or credit cards when reviewing our loans.

My equifax score is lower, 566 (average) :( , but it changes by 1 point here and there. We never carry a balance, we never pay late (with the occasional 1-2 days when we forget to schedule a payment) so in theory should be a perfect risk to creditors as we USE credit, but always pay it back quickly and we have equity.

A Veda (now equifax) rep told me (after Origin Energy wouldn't give me an energy account saying my score was too low!) that my score was "low" because I moved 5 times in 9 years, otherwise my report had nothing negative that would impact me.
 

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