CC churning - equifax scores

Discussion in 'General Credit Card Discussion' started by rock86, Oct 19, 2017.

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  1. Jamesaurus

    Jamesaurus Intern

    Feb 20, 2016
    79
    11
    Sydney
    The h
    So in your experience did the home buying have minimal impact on the score?
     

  2. robtemt

    robtemt Member

    Didnt seem to affect it at all.
     
  3. flapper

    flapper Intern

    Aug 31, 2011
    58
    4
    I have been CC churning for a few years and my Veda falls after every application between 30-40 points.
    I pay my credit cards in full every month by direct debit am well ahead on my mortgage and pay more than required every month and pay all other bills on time.
    I am now only average and wonder if I should slow down on the churning but those points are addictive.
     
  4. theblank

    theblank Established Member

    Aug 3, 2014
    1,035
    158
    of course, banks have been credit scoring loan applications themselves for 20+ years. Nab Started in 1991 and was one of the first. They all have built a massive amount of data by now. There is no chance that they will be relying on any of the credit bureaus who are building a score based on irrelevant information, paarticularly when the bank themselves uses the equifax data when doing their own assessment.

    The only purpose of the credit score Equifax displays to you, is to suck you into buying their products, and their referrals. Its a marketing gimmick.
     
    • Informative Informative x 1
  5. theblank

    theblank Established Member

    Aug 3, 2014
    1,035
    158
    that has no impact at this time. and not until you start seeing that information being reported by your credit file.
     
  6. deebens

    deebens Member

    Dec 7, 2015
    215
    15
    Yeah there's a wide disparity in my Experian and Equifax scores.

    Can't give you the numbers offhand, but I'm almost excellent with Experian. I'm almost average with Equifax.
     
  7. Bindibuys

    Bindibuys Established Member

    Jul 5, 2011
    1,247
    1,742
    Hunter Valley NSW
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    I did this, had my DIL send me an invoice for "goods" via Paypal and used the new card via Paypal to pay her invoice. When she received the funds, she just transferred the money back to me. It did cost though.... someone has to pay the paypal fees. If I remember correctly the invoice was for $3,500.00 and it cost me around $40.00?? in fees. But I thought it was worth it, as I did not have to think about getting the minimum spend done within a set time.
     
  8. PointsTravel

    PointsTravel Junior Member

    Aug 21, 2017
    24
    5
    Perth
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    4 CC applications in 4 Months and my Equifax has gone from 773 to 725 - I’m happy to wear the drop in score for 365k Points :D
     
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  9. get me outta here

    get me outta here Senior Member

    Nov 18, 2011
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    Just rec’d an email from Equifax. Looks like all the cc apps are coming back to haunt us:

    You may have seen the recent media activity on Comprehensive Credit Reporting as the Government looks to speed up supply of this information by Australian lenders.

    National Australia Bank will start sharing their Comprehensive Credit Reporting information this month which you can read more about here. As this Comprehensive Credit Information becomes available you may see more information added to your Equifax Credit Report which may cause your Equifax Score to change.

    Comprehensive Credit Reporting information includes the following categories:

    • Type of credit account (credit card, personal loan etc.);
    • Date the credit account was opened,
    • Current credit limit;
    • Account closed date; and
    • Last 24 months of repayment history showing whether or not the minimum repayment was made on time.
    To help consumers understand the impact this will have on Equifax Scores, we prepared this infographic that talks about what goes into a credit profile.

    As seen in other markets around the world which have adopted a Comprehensive Credit Reporting system, it boosts competition between lenders. Additionally, consumers who establish a good credit profile by paying their credit commitments on time are more likely to get access to credit at the price they deserve.


    Kind regards,

    The Equifax team
     
    • Informative Informative x 2
  10. Lemon_Party

    Lemon_Party Member

    Jan 30, 2016
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    Interesting link - thanks for posting
     
  11. I love to travel

    I love to travel Active Member

    Jun 4, 2016
    609
    132
    Brisbane
    So am a bit confused. Even if you pay on time your score will drop because you have churned credit cards or am I missing something?
     
  12. deebens

    deebens Member

    Dec 7, 2015
    215
    15

    Might be a positive in all the full payments and closures to mitigate the openings.

    More than happy to have the fact that I've never missed a payment start working into it.
     
  13. Dr Ralph

    Dr Ralph Senior Member

    Jan 21, 2014
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    Reality is no one knows how this will all work in Australia, just that there are some new factors in deciding how your score will be calculated.

    In my view having high credit limits will be an important factor.
     
    • Agree Agree x 1
  14. get me outta here

    get me outta here Senior Member

    Nov 18, 2011
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    I am reassured that they say they can see what has been cancelled. It’s good to remember when applying for a cc to get a limit as low as is necessary.

    I’m going to look into doing one more ASAP. I made the mistake of not concentrating when doing one of my apps and ended up with a limit of 50K.
     
  15. amaroo

    amaroo Enthusiast

    Sep 22, 2011
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    I got it... no worries. Neither of us have applied for a CC for 4 years. LOL once the CC cleansing takes place - maybe we'll dip the toes in :cool:
     
  16. Scr77

    Scr77 Active Member

    Feb 15, 2014
    701
    197
    Victoria
    2 on time payments have been reported on my Experian file (no negative reports) and my score has fallen from Very good to below average range overnight. That Doesn’t add up to me!
     
    • Agree Agree x 1
  17. amaroo

    amaroo Enthusiast

    Sep 22, 2011
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    The link in the Equifax email has a graphic on how your score is assessed.

    Credit application = 51%
    Credit report age = 3%
    Personal Info = 3%
    Adverse events = 10%
    Repayment history = 30% .... CCR
    Credit limit = 3% ..... CCR

    CCR component = 33%
     
  18. I love to travel

    I love to travel Active Member

    Jun 4, 2016
    609
    132
    Brisbane
    Same here not happy
     
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  19. Dr Ralph

    Dr Ralph Senior Member

    Jan 21, 2014
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    Just checked and my score has fallen by more than 300 points. Now below average.

    Have to say that I'm not worried at all. If banks take this as the criteria for credit then no one will be getting credit ever again!

    As I've always said a credit score is just one factor in the assessment of your credit application. Income and ability to repay are very highly valued by banks.

    I'll continue to apply for every credit card that I can.
     
  20. benjy

    benjy Active Member

    Dec 18, 2013
    713
    232
    Melbourne
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    #40 benjy, Feb 17, 2018
    Last edited: Feb 17, 2018
    For me, my NAB account is reporting on Credit Simple (score went up by 30 or so points) but nothing yet on Equifax or Experian

    My Equifax is currently Below Average so I'm hoping CCR will bring my score back up.
     
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