Multiple Credit Card Applications and cancellations

[avaction]

Is there anybody on this forum in the credit or banking industry who know what effect "churning" credit cards makes on your credit rating, or ability to be accepted for further credit?

We took advantage of the 50,000 QFF miles offered by ANZ and are now considering applying for the NAB card for another 40,000 miles after cancelling a VISA card with a Credit Union.

Any advice, knowledge or tips would be most welcome to a "newbie" to this game of accruing points.

 

[cove]

You can have a look at your credit score for free yourself and there is a thread in AFF on this topic.
Churning is not one of the greatest ideas but many do it to score the first year bonus points and that can work a treat if you need a 100,000,50,000 and a 20,000 pretty quickly.

 

[FreddyFattler]

I dont work in the industry but have subscribed to the vedascore since it was first offered.

Each card application I have made has resulted in a 20 point drop in rating.

After 9 months of no changes in circumstances saw my rating make its first jump. So it can take a while to "recover".

 

[smit0847]

I dont work in the industry but have subscribed to the vedascore since it was first offered.

Each card application I have made has resulted in a 20 point drop in rating.

After 9 months of no changes in circumstances saw my rating make its first jump. So it can take a while to "recover".

Hi Freddy
I understand the Veda score is a percentage. Does that mean if you had a 'good' score of 50% and then made 2 applications within 9 months it would go down to 10%?!? That doesn't seem like a very accurate score.

And if you wait 9 months it then goes up 20% per application? That means I would probably have a terrible Veda score yet still be considered an excellent credit candidate by financiers? This doesn't make much sense!

 

[DeKa]

Hi Freddy
I understand the Veda score is a percentage. Does that mean if you had a 'good' score of 50% and then made 2 applications within 9 months it would go down to 10%?!? That doesn't seem like a very accurate score.

And if you wait 9 months it then goes up 20% per application? That means I would probably have a terrible Veda score yet still be considered an excellent credit candidate by financiers? This doesn't make much sense!

It's not a percentage. It's a score which places you in percentile bands.
http://www.veda.com.au/yourcreditandidentity/check/vedascore/how-my-vedascore-displayed

 

[get me outta here]

There is an option for a free check under certain circumstances, but I cannot find where they hide that option. Anyone got a link plse?

 

[FreddyFattler]

The free score is available from getcreditscore.com.au

Note theyre a third party who you are giving your permission to..to "soft touch" in order to get the score from veda so you may want to read the t&cs first.

As to how it works I have no idea.

I went 722 to 702 from my amex application, 9 months later I jumped to 770 and the following month to 803
I had a pre approval for a homeloan between the 770/803 without any drop and have just received unconditional on a loan for land which may not happen until the next cycle in order to see the effect that has on the score.

 

[get me outta here]

Thanks, by clicking through a few things I finally found the free 'Mycredit' link which is part of Veda Get Your Free Credit File At www.MyCreditFile.com.au

The free score is available from getcreditscore.com.au

Note theyre a third party who you are giving your permission to..to "soft touch" in order to get the score from veda so you may want to read the t&cs first.

As to how it works I have no idea.

I went 722 to 702 from my amex application, 9 months later I jumped to 770 and the following month to 803
I had a pre approval for a homeloan between the 770/803 without any drop and have just received unconditional on a loan for land which may not happen until the next cycle in order to see the effect that has on the score.

 

[Jeffrey O'Neill]

I did NAB and ANZ car apps which got approved over a 3 month period to get the sign up bonuses.

My credit score took a decent hit, but still at a reasonable level. I've noticed it has started to go back up though.

 

[Rick93]

OK, while we're on the topic ...
( purely hypothetical, of course !)
If one were to have been Bankrupt; served out the 'three years', then has about 18 months to go to serve out the final 'four years' ...
What would their chance of getting approved for a CC be ? ( just a basic card - not Gold / Plat )

 

[cove]

Rick93 it took my friend about 7 years to get back from a catastrophic business failure. To buy a house he took a mortgage through a private mortgage broker. Then 3 years later a friend at AMP got him a Mortgage but no credit card. He used debit cards for 7 years as none of the Big Four banks would issue him a credit card. It is a long journey getting to YES on a great credit card.

 

[benjy]

OK, while we're on the topic ...
( purely hypothetical, of course !)
If one were to have been Bankrupt; served out the 'three years', then has about 18 months to go to serve out the final 'four years' ...
What would their chance of getting approved for a CC be ? ( just a basic card - not Gold / Plat )

Hypothetically speaking, I think you will find it to be extremely difficult getting approval for a credit card while bankruptcy is on your credit file (7 Years).

 

[The Rok]

The first step I would advise anybody in this country to do is the day you turn 18, sign up for Veda Advantage and follow your score and credit file monthly.

Everybody checks their bank and credit account statements monthly, your credit file is just as important.

It's $85 a year well spent and well worth it!

 

[fersea]

The first step I would advise anybody in this country to do is the day you turn 18, sign up for Veda Advantage and follow your score and credit file monthly.

Everybody checks their bank and credit account statements monthly, your credit file is just as important.

It's $85 a year well spent and well worth it!

why no one seems to be able to explain what it actually means.

 

[FreddyFattler]

Because the file will show or warn you if there has been a fraudulent application made in your name or if Veda had mixed up peoples files.

The monkeys at Veda had 2 files for me at one stage. Same address same email address to subscribe to both the score and the report services yet they still stuffed it.