Credit File / System

[Diesellife]

I was reading that article (Link below) today and believe that the information in the article appears to be incorrect..

http://www.money-au.com.au/finance-...onsider-before-cancelling-a-credit-card-4097/

My question is how does credit ultilisation ratio (Or any other positive factors) comes into play when Australia is using a "negative" credit reporting system.

Can anyone share their comments/knowledge please?!

 

[Mal]

An utterly useless and incorrect article. Not surprising based on the general content of that website, the owners of the website and what they are trying to do (ie appear to be a "financial hub" and earn commission from people signing up for 'recommended' cards.)

 

[vilemerchant]

There are so many incorrect perceptions about credit reporting in Australia. I remember a conversation with one stupid girl.

"I have a AAA credit rating".
Me: How the frak do you figure that one?
"Because I never use my credit card for groceries or alcohol and the CC company can see that".

I never laughed so hard.

 

[Dave Noble]

The information there is more relevent to USA but not to Australia.

Australia indeed does not have a credit rating system , just a negative report. Utilisation percentages are not stored

It has been reported on this foum that there is now additional information maintained on Veda which is about ongoing credit arrangements, so sounds like there could be an effect if they take into account the number of cards held

If they asked on a an application for credit about total limit of credit currently available and also how much was being used, then they could then use the utilisation percentage as a consideration

As far as how where using a card can have an effect, there have been reports in USA of adverse effects of using some cards at certain types of stores, though not heard anything about targetting customers for credit limit decreases based on their shopping profile in Australia

Dave

 

[Diesellife]

I did further digging with the latest reform and here is what I found:
Dun and Bradstreet - Law Reform Commission calls for reform of credit reporting laws

I wonder if the current law has changed (or still pending for decision?)

 

[bambbbam2]

"I have a AAA credit rating".
Me: How the frak do you figure that one?
"Because I never use my credit card for groceries or alcohol and the CC company can see that".

Wouldn't not buying grog on a card give you an "AA" rating?

Sorry.

 

[NM]

Wouldn't not buying grog on a card give you an "AA" rating?

Boom Boom

Sorry.

You should be! Mostly for beating me to it