CC churning - equifax scores

[sevenfourtyseven]

Not sure I understand.

Do you mean how long after making an application will this appear on your credit file?

Correct. Assume it would be immediately reflected on the credit file that Westpac made a query? Or is there a time lag.

I ask as there is no query listed on my Equifax file received last night - post making Westpac approving an application on Monday.

 

[Dr Ralph]

Correct. Assume it would be immediately reflected on the credit file that Westpac made a query? Or is there a time lag.

I ask as there is no query listed on my Equifax file received last night - post making Westpac approving an application on Monday.

Don't know that I've ever seen it be immediately reflected. Often takes weeks.

 

[andye]

Mrs andye cancelled her Virgin Flyer in June. That has just shown up on creditsavvy resulting in a 21 point improvement

 

[Skyhawk]

Don't know that I've ever sen it be immediately reflected. Often takes weeks.

Applying for multiple cards simultaneously may be advantageous.

 

[Dr Ralph]

Applying for multiple cards simultaneously may be advantageous.

Recommended

 

[deebens]

It seems I'm also on the Macquarie blacklist, but rejection comes without a credit check thankfully.

That makes Citi and Macquarie no go, but both don't hit my file. No issue with big four or HSBC. Even tried the lowest bargain basement jetstar card issued by Macquarie to grab 20k points for $29, given my exclusion periods elsewhere. No sir.

 

[I love to travel]

Amex shown up today for me

 

[andye]

Is this the cas

Amex shown up today for me

If mine turn up, I'll be interested to see if the on-time payments outweigh the credit limits

 

[burmans]

How quick should I expect a query from Westpac to appear? Straight away after file has been queried?

Application enquiries are treated differently from repayment information. The latter has to be reported monthly within 10 days of EOM. However the situation is different for application enquiries. Credit providers can only access credit bureau data in very limited scenarios, the main one relevant here is that they can access credit history when an application is made for credit, what the law requires though is that they reveal as a precondition the circumstances of that credit. So the bureaus know as soon as the provider pulls your file and it instantly becomes part of that record.

However while it becomes part of your record immediately what the bureaus show on your credit file is what is disclosed to others. To use a specific example therefore if you applied for a CC the day after applying for another, yes the first one may well be on your record, indeed multiple applications in a very short time is a major indicator of financial stress and hence one of the first thing credit providers look for (and hence the bureaus definitely want to show as it adds value to their service). Same day applications may work but credit file update is close to immediate i.e. you should be applying within seconds or minutes, not hours.

 

[rock86]

Looking over my credit file today, I am actually looking forward to my loan account repayments showing on my credit file as part of the CCR requirements, at least they are positive constant repayments and should offset against the 'negative' enquiries from churning.

 

[Skyhawk]

I've just had a cc application declined, so would like to see my credit file. I had recently obtained a free copy, within the last 3 months.

Apparently I can get a free copy at any time, if I've had an application for credit declined. However, I'm not sure that I want to advise a credit bureau that I've been refused credit.

Are there any disadvantages if I advise a credit bureau that I've been refused credit?

 

[cvmceg]

Looking over my credit file today, I am actually looking forward to my loan account repayments showing on my credit file as part of the CCR requirements, at least they are positive constant repayments and should offset against the 'negative' enquiries from churning.

Just got an update from creditsavvy. latest 3 months of CC repayments have come through and bumped me over 800 happy days

 

[blacksultan]

Recommended

though once they do show on your file that causes your score to drop drastically!

 

[rock86]

Just got an update from creditsavvy. latest 3 months of CC repayments have come through and bumped me over 800 happy days

Yep, I thought the repayment history might have that effect on credit scores, once loan information also comes through I'd expect another positive influence on the credit score from their repayment histories.

 

[Dr Ralph]

though once they do show on your file that causes your score to drop drastically!

'If' not 'when' is the word I'd use. In my experience about 50% of applications do not show, AMEX for example has never shown for me.

And I also wouldn't use the word 'drastically'. It's one factor in your score.

 

[blacksultan]

'If' not 'when' is the word I'd use. In my experience about 50% of applications do not show, AMEX for example has never shown for me.


And I also wouldn't use the word 'drastically'. It's one factor in your score.

yes never notice it. but it would show with at least one of the 3 bureaus if not all. would n`t it ?

 

[Dr Ralph]

yes never notice it. but it would show with at least one of the 3 bureaus if not all. would n`t it ?

Historically, no. Now, we shall see.

 

[burmans]

Historically, no. Now, we shall see.

All majors have now signed up to exchange data so it's largely a matter of time now. Smaller organisations might not sign up but they'd be foolish not to do so frankly, they gain more than they have to contribute.

 

[rock86]

Just got this in an email - interesting that enquiries still make up such a large portion for equifax calculation.

 

[burmans]

It does say may be subject to change!.

The way the score and the value they put on different components of your score would necessarily be based on how good that information is. If we look at the way the US calculate the score (which someone posted) somewhere its quite different to this, in particulat repayment history ranks higher and credit applications (much) lower. But you need to bear in mind that at the momemnt the bureaus only have somewhat limited repayment history (one major contributing and a couple of others, i.e. not the other 3 majors, not mortgage info, no Amex) for the last 6 months or so only.

As they get more repayment history into the system I fully expect these proportions to change. I know one of the bureaus did a trial and this showed that repayment history is much more predictive than application history but you need to have all that information available before you realise that value.