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CC churning - equifax scores

deebens

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Joined
Dec 7, 2015
Messages
219
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.
 

mviy

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Though old applications should have reduced importance well before the 5 years are up.
 

Irishbazz

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

robtemt

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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
 

JohnK

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Has anyone that does not churn credit cards been affected?
 

rock86

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Jul 18, 2017
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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.
 

Dr Ralph

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but as the Dr has pointed out, ability to repay is still highest on the list.
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!
 
Joined
Jun 3, 2014
Messages
352
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...
 

andye

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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
 

lovetravellingoz

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Joined
Jul 13, 2006
Messages
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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.
 

Irishbazz

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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.
 

andye

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...Maybe, Australia is somewhat unusual in the penetration of FF-earning credit cards (and I'm guessing the proportion of the population who churn).....
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
 

Jacques Vert

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Jun 24, 2008
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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.:)
 

TomVexille

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According to the RBA, $31.775 billion in balances accruing interest as of December 2017
 

mviy

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Dec 1, 2015
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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.
 

andye

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According to the RBA, $31.775 billion in balances accruing interest as of December 2017
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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