New credit reporting changes -new accounts & your credit rating?

[extracta]

[MOD EDIT] This thread has been spun off from http://www.australianfrequentflyer....omotions/qantas-cu-platinum-visa-35838-3.html as it contains material thats topical in its own right!

Not really a huge problem unless you are planning on applying for a big loan in next few months. Banks seem multi applications in a short time as a sign you are i debt stress, if you want to apply for a mortgage in next 6 months not a good idea to have to many applications. Has no long term impact on your credit rating though.

In general banks do there figures on you having any credit card you have maxed out. So if it affected a loan all you would have to do is cancel a few of them.

Also we do not have a credit rating in Australia as they do in the states. However if you give them permission banks can see any applications for loans or credit cards that you have had for the last 5? years, also includes bankruptcies etc.

A good loan manager would question which of your applications you took up and try and assess why you wanted the money.

All easily explained with your addiction to getting free ff points.

 

[markis10]

Re: Qantas CU - Platinum Visa

In general banks do there figures on you having any credit card you have maxed out. So if it affected a loan all you would have to do is cancel a few of them.

Also we do not have a credit rating in Australia as they do in the states. However if you give them permission banks can see any applications for loans or credit cards that you have had for the last 5? years, also includes bankruptcies etc.

A good loan manager would question which of your applications you took up and try and assess why you wanted the money.

All easily explained with your addiction to getting free ff points.

Credit scoring is now part of the credit rating system, including reporting on ongoing loans and their balances, so we do very much now have a rating system.

 

[burmans]

Re: Qantas CU - Platinum Visa

Credit scoring is now part of the credit rating system, including reporting on ongoing loans and their balances, so we do very much now have a rating system.

Not quite, legislation has been drafted but has yet to be enacted. But yes it is coming. Incidentally what will be reported is not balances but limit. If you have some credit cards with very high limits you don't use you may wish to get them reduced as it will affect credit availability.

 

[travelislife]

Re: Qantas CU - Platinum Visa

Not quite, legislation has been drafted but has yet to be enacted. But yes it is coming. Incidentally what will be reported is not balances but limit. If you have some credit cards with very high limits you don't use you may wish to get them reduced as it will affect credit availability.

My issue is I have a 28degreescard which gets loaded up close to the limit maybe twice a year when I go on my overseas holidays, but other than that the balance remains at 0 whilst I use my other primary card here in Australia, also with a highish limit.

The balance on my cards is always 0 at the end of the cycle and I have never paid a cent of credit card interest in my life so I wish it did somehow count to your rating, saying that the CC companies would probably prefer it if I didn't always close my balances out!

 

[markis10]

Re: Qantas CU - Platinum Visa

Not quite, legislation has been drafted but has yet to be enacted. But yes it is coming. Incidentally what will be reported is not balances but limit. If you have some credit cards with very high limits you don't use you may wish to get them reduced as it will affect credit availability.

Its here now and in operation although as you say it wont include balances, and when the law is in place will include limits and repayment history:

Credit Scores, Credit Rating On Individuals | Veda

Veda's credit reports also include a credit score summarising Veda bureau information into a single powerful number a VedaScore. So your Veda credit report gives you the information you need to help you make more informed credit decisions for your business.

 

[extracta]

Re: Qantas CU - Platinum Visa

Its here now and in operation although as you say it wont include balances, and when the law is in place will include limits and repayment history:

Credit Scores, Credit Rating On Individuals | Veda

This is a private company touting its business.

There are many legal and privacy issues in Australia that need to be addressed to enable a legislated credit rating system to be successfully enacted.

 

[markis10]

Re: Qantas CU - Platinum Visa

This is a private company touting its business.

There are many legal and privacy issues in Australia that need to be addressed to enable a legislated credit rating system to be successfully enacted.

Veda is actually the credit reporting agency for Australia for individuals, they are the old CRA, then Baycorp etc etc. When a bank or finance provider looks up your record, as an individual its VEDAs database and scoring they are getting.

As for the privacy issues, etc, they have been addressed through what seems to be a comprehensive review inclyuding a senate committee:

http://www.aph.gov.au/senate/committee/fapa_ctte/priv_exp_drafts/report_part2/index.htm

 

[extracta]

Re: Qantas CU - Platinum Visa

As for the privacy issues, etc, they have been addressed through what seems to be a comprehensive review inclyuding a senate committee:

The privacy issues are being addressed but it is very difficult to get information on people taking out loans as to credit worthiness.

For example when people take out loans, credit cards etc and are asked for a referee or two, or for the name of a friend or relative, can the credit provider contact these people to talk to them about the fact that someone they know has nominated them on a loan etc application?

If the answer to this question is no, then what is the real reason that credit providers ask for these referees/friend/relative??

 

[markis10]

Re: Qantas CU - Platinum Visa

The privacy issues are being addressed but it is very difficult to get information on people taking out loans as to credit worthiness.

For example when people take out loans, credit cards etc and are asked for a referee or two, or for the name of a friend or relative, can the credit provider contact these people to talk to them about the fact that someone they know has nominated them on a loan etc application?

If the answer to this question is no, then what is the real reason that credit providers ask for these referees/friend/relative??

Referees are there purely to provide a point of contact should the person not be contactable during a default, nothing to do with your credit worthiness as such. If you look at the scoring, they are using models and behaviour to provide a score, recognising that bad credit is not always someone who has had previous defaults, and as the Veda scoring example explains, often people in trouble will use credit to pay credit, which is why the likes of Amex and others keep a constant eye on your file with regards new applications etc.

 

[drsmithy]

Re: Qantas CU - Platinum Visa

Not quite, legislation has been drafted but has yet to be enacted.

I don't suppose, by some miracle, this is legislation making any system remotely like the ridiculous American one illegal ?

 

[burmans]

Re: Qantas CU - Platinum Visa

Veda is actually the credit reporting agency for Australia for individuals, they are the old CRA, then Baycorp etc etc. When a bank or finance provider looks up your record, as an individual its VEDAs database and scoring they are getting.

As for the privacy issues, etc, they have been addressed through what seems to be a comprehensive review inclyuding a senate committee:

Parliament of Australia:Senate:Committees:Finance and Public Administration Legislation Committee:Report Part 2 - Credit Reporting

This is draft of legislation, it has not been enacted, merely put out for comment. The latest timeline put out by the minister for enactment is mid 2012.