Credit file & Credit card churning

[mistado]

HI guys,

i have been churning credit cards last year, racked up about 350K in qantas points over 12 months. But recently got rejected for a credit card this year.. due to my credit file.. I got a copy of it sent to me, but no record of my credit score no. I have pasted the summary of my credit file here and would appreciate any advice in terms of how to overcome this barrier and continue churning this year. I generally cancel the cards once i have received my points and move on. Pay of all my cards on time. Earning 150K plus a yr.


Any advice would be appreciated.

 

[coles525]

Subscride to Veda Access (my credit file) to findout your monthly credit score.

It's updated at the end off each month, but costs $100 per year.

The more cards you churn, the lower your score can become.

Will upload another with some history scores.

 

[coles525]

Credit score

 

[mistado]

Thanks, but is there anything that i can do to increase the score again, or do i just have to wait a while till things cool off on my credit so to speak.

 

[coles525]

Wait a few months. Pay for the annual membership to access your credit file and also credit score.

Then check it each month, until it goes from bad / average / good / very good / perfect.

When it gets better from where it is now, try again.

Using bad / average (etc) as examples only.

 

[mistado]

Thanks for the advice and prompt reply.

 

[exceladdict]

I'm not a financial adviser, so take this with a grain of salt, but I understand that it's not just your veda score or number of enquiries that they calculate it on. Veda create the score based on a number of factors, but the bank might weight it differently and not use the same mechanism that Veda do for calculating the score. You may want to check and ensure there's no incorrect entries in the file, first up.

Also get your free dunn and bradstreet check as well, I believe some banks use that as well as veda.

Most other threads on the topic say don't apply for credit in any form - from postpaid mobile phones, to credit cards or loans of any sort - for 6 to 12 months for the 'slate to be cleared', so to speak.

Finally, I wonder whether the new financial reporting rules have come in, whether the banks are sharing your current limit with prospective lenders, and then you getting denied based on your 'credit file'.

(Those more experienced than I, if I have erred in any of the above, please correct me).

 

[asg29e]

I'm not a financial adviser, so take this with a grain of salt, but I understand that it's not just your veda score or number of enquiries that they calculate it on. Veda create the score based on a number of factors, but the bank might weight it differently and not use the same mechanism that Veda do for calculating the score. You may want to check and ensure there's no incorrect entries in the file, first up.

Also get your free dunn and bradstreet check as well, I believe some banks use that as well as veda.

Most other threads on the topic say don't apply for credit in any form - from postpaid mobile phones, to credit cards or loans of any sort - for 6 to 12 months for the 'slate to be cleared', so to speak.

Finally, I wonder whether the new financial reporting rules have come in, whether the banks are sharing your current limit with prospective lenders, and then you getting denied based on your 'credit file'.

(Those more experienced than I, if I have erred in any of the above, please correct me).

I'm inclined to agree. If I were a bank and saw 40+ recent credit enquiries on a file I would think "credit card churner, denied" without even looking at the other stuff.

 

[coolkid101]

same thing happened to me last year. too many applications. 40 is quite extreme though, i had about half of that and the credit underwriter at the bank even called me to clarify a few things about my applications ("why so many cards" etc).
had run my credit score to the ground. subscribed to veda was at the bottom with my score despite having no liability etc and income more than what you wrote above.
was told by the credit guy to leave things be for 6-12 months

with 350k QFF points thats a really good haul even for another year of laying low. i didn't get even half that much.

 

[trippin_the_rift]

40 credit application wow! I get worried with just 1

 

[cove]

I have avoided card churning by selecting cards that provide healthy points results on an ongoing basis. Yes sign on bonuses can be very sweet but if the card earns weak rewards on a monthly basis I avoid them.
Our latest two cards are Qantas Credit Union CC and HSBC CC both of which pay a point per dollar on expense items that an Amex card is of no use.
Card churners can create their own self inflicted issues when you really need help from a Bank for a special purchase.

 

[smit0847]

I think the best advice is monitor your score monthly. From the example above it can jump 100 points in a month. Wait until its over 700 before applying again and reduce your frequency of applications!

 

[smit0847]

same thing happened to me last year. too many applications. 40 is quite extreme though, i had about half of that and the credit underwriter at the bank even called me to clarify a few things about my applications ("why so many cards" etc).
had run my credit score to the ground. subscribed to veda was at the bottom with my score despite having no liability etc and income more than what you wrote above.
was told by the credit guy to leave things be for 6-12 months

with 350k QFF points thats a really good haul even for another year of laying low. i didn't get even half that much.

What was youre score then? Under 500?

 

[Beta4Me]

Calling Cruiser Elite...

 

[coolkid101]

What was youre score then? Under 500?

yup
ended up going under 500 = 489
it's taken some time to recover as well. since dec it's now only climbed to less than 530 or so.. despite having no further applications and no outstanding debts or any other forms of any liability - no mortgage, loans etc.

on VEDA it gives me negative points still for
Type of credit currently or previously applied for
Number of consumer credit enquiries

so apparently still feeling the effects of all those credit applications.

 

[coolkid101]

I think the best advice is monitor your score monthly. From the example above it can jump 100 points in a month. Wait until its over 700 before applying again and reduce your frequency of applications!

i didn't know about waiting till at least 700 but i was told to wait at least 6 months. it's now coming up to 6 months but with a 500+ score maybe i'll wait a bit longer.

so to OP >> yes those credit applications do bloody hurt

 

[Beta4Me]

Apply for a mortgage. It'll boost your score a bit. Stupid, but it works.

 

[coolkid101]

Apply for a mortgage. It'll boost your score a bit. Stupid, but it works.

really. how does that work?

 

[Beta4Me]

really. how does that work?

They see it as a positive credit-seeking activity. Bit odd but some logic to it.

 

[coles525]

Apply for a mortgage. It'll boost your score a bit. Stupid, but it works.

100% agree. Now in debt to a house, credit file (picture on previous page) went from good to VERY good.