CC churning - equifax scores

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

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  1. deebens

    deebens Member

    Dec 7, 2015
    215
    15
    Woof, from 764 to 463 overnight.

    100% repayments on time. 14 credit enquiries. zero negative events.

    So much for thinking repayment history might be more important.

    Guess I'll cool the jets until I see some future application results posted.
     

  2. Irishbazz

    Irishbazz Member

    May 17, 2016
    231
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    Perth
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    They should rotate out after hitting the five year mark.
     
  3. mviy

    mviy Established Member

    Dec 1, 2015
    2,250
    542
    Though old applications should have reduced importance well before the 5 years are up.
     
  4. robtemt

    robtemt Member

    Is this documented, or are you just speculating? Doesn't seem to be a lot of actual knowledge on new reporting....
     
  5. Irishbazz

    Irishbazz Member

    May 17, 2016
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    From the equifax website:

    How long does Information Stay on My Credit File?

    This all depends on the type of data. Identity information including your name, date of birth, gender, driver’s license and address history is held for the life of the credit report. For other information on your credit report, here are some of the typical time frames.


    Two years
    Repayment history information


    Five years
    Any credit enquiry
    Overdue accounts listed as a payment default
    Overdue accounts listed as clearouts
    Writs and summons
    Court judgments


    Seven years
    Overdue accounts listed as a serious credit infringement
     
  6. robtemt

    robtemt Member

    Interesting. They seem to talk about comprehensive reporting, but have very little detail to justify a sudden dramatic decrease in a score.

    Here is some info on their reporting, but it doesn't match what they show to the consumer yet? I hope there are frequent and substantial updates coming...
    Comprehensive Credit Reporting Common Questions
     
  7. JohnK

    JohnK Veteran Member

    Mar 22, 2005
    40,890
    8,940
    BNE, SYD and CNX
    Has anyone that does not churn credit cards been affected?
     
  8. rock86

    rock86 Established Member

    Jul 18, 2017
    1,026
    236
    Toowoomba
    Is anyone really worried about this affecting their ability to get credit??

    After starting this thread I decided I would do some more digging into credit application approvals, so talked to a mate who works for NAB in home loan lending (I know it isn't in the credit card department, but processes are very similar) & one who works with CBA in consumer lending. Both said the same thing, their whole process is done in-house with them performing checks on the information you supply and assessing the ability to make payments on that information.

    Checking credit files is a part of the process to confirm mostly that you do not have any issues on your file and to look at your credit history. The score is just a guide, whereas the information behind it is more important and is where the weighting is in their approval criteria, but as the Dr has pointed out, ability to repay is still highest on the list.
     
  9. Dr Ralph

    Dr Ralph Senior Member

    Jan 21, 2014
    8,492
    3,162
    Wollongong
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    That's definitely my view and I'm counting on it continuing.

    If they do start paying serious attention to the number of past applications then it's all over for me. I have 19 applications within the last 2 years!
     
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  10. burmans

    burmans Senior Member

    Feb 21, 2006
    6,321
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    5 years is the law (Privacy Act).
     
  11. There'sOnlyOneJimmy

    Jun 3, 2014
    342
    155
    MEL
    Just another data point...
    My last Credit Card application was in June 2017 (yes, slack, I know...).
    My last 11 month’s credit scores (according to CreditSavvy) were all 724.
    Then this month, following the introduction of the new CCR system, my score dropped to 565.
    As far as I can see, the only change to the data they have is the addition of payment information on one credit card account (which has been closed for about 18 months), which shows a credit limit of $zero and a Repayments On Time history of 100%.
    I have a ‘Real Life’ 100% pay on time record, and significant assets & income.
    I know that the rating agencies are trying to produce scores on the basis of information which is known to be incomplete. But when any rational assessment of my ‘Real, full fact’ financial history & situation would probably result in a credit score of 950+ Vs the current 565, the system looks to be a bit broken & unreliable.

    /end of grizzle...
     
  12. andye

    andye Established Member

    Jan 14, 2013
    3,479
    991
    Manly
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    It seems from our, admittedly limited, sample that the credit score isn't doing what it is supposed to (given that most of us are reasonably good credit risks, pay bills on time etc)
    There must be some statistics/science underpinning this. When something gives an unexpected result in those circumstances, I'd usually look for a cause of the variance.
    Maybe, Australia is somewhat unusual in the penetration of FF-earning credit cards (and I'm guessing the proportion of the population who churn) .
    No knowledge -just speculating why the system doesn't seem to be working-for us at least
    I know burmans has some background in this and may be able to enlighten
     
  13. lovetravellingoz

    lovetravellingoz Senior Member

    Jul 13, 2006
    5,649
    1,505
    MEL
    Like most my score has suddenly plummeted despite 100% payment record and no negative events.

    Bemusing as supposedly payment record was being added in but what should be a positive seems to have actually been a negative.
     
  14. Irishbazz

    Irishbazz Member

    May 17, 2016
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    Slightly more positive for me on the CCR update. Yesterday I was sitting at 499 on credit savvy, just got hit with a 145 point deduction after buying a new car a few weeks previously. Got the email today telling me the repayment history was now showing, logged in and now sitting at 560 which is a nice little bonus.
     
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  15. andye

    andye Established Member

    Jan 14, 2013
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    I seem to remember some 'doom and gloom' article in a newspaper saying Australia was in debt crisis as we had the highest national proportion of people paying for their groceries with a credit card. I'm sure that true but most wont be running that up as a recurring debt
     
  16. Jacques Vert

    Jacques Vert Established Member

    Jun 24, 2008
    2,580
    2,220
    Coffs Harbour
    My update on Credit Savvy just came through and it stays the same as the previous three months:695.

    If most people are seeing their score fall dramatically, then maybe I am in their good books.:)
     
  17. TomVexille

    TomVexille Enthusiast

    Nov 12, 2013
    10,300
    4,793
    Melbourne
    I think you would be surprised...
     
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  18. TomVexille

    TomVexille Enthusiast

    Nov 12, 2013
    10,300
    4,793
    Melbourne
    According to the RBA, $31.775 billion in balances accruing interest as of December 2017
     
    • Informative Informative x 1
  19. mviy

    mviy Established Member

    Dec 1, 2015
    2,250
    542
    Once you get behind on paying off credit cards the interest can stack up quickly making it difficult to get back on top off and repair the damage to your credit score (which may be the least of your worries).

    It's advisable to live within your means so that when unexpected financial shocks come you have some savings to draw on.
     
  20. andye

    andye Established Member

    Jan 14, 2013
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    Huge number but worthwhile to compare to the total Australian household debt of $2 trillion-i.e 1.6% of that is on credit cards.
    56% is owner-occupied mortgages, 36% investor debt, 3.1 % personal loans, 2.1% HECS
     
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