Veda Credit Scores and American Express Applications (esp Plat Charge)

[blueythecat]

AMEX have offered me a credit limit increase on my Platinum Edge. If I accept, will it affect my credit score negatively? Anyone had an experience with this situation?

I did this about four years ago with a Qantas AMEX card and I'm almost certain they put through another credit inquiry as a result. Their process may well have changed in the intervening years.

 

[burmans]

If you apply for a limit increase, there's a chance it'll result in a credit hit, although not always.
But if they actually offer it to you and you simply accept it, it's very unlikely that they will do a credit check.

Indeed, but you frequently find that what you think is an offer of a limit increase is actually an offer to apply for a limit increase, I got one today from Amex. Fortunately I know what to look for, a less informed consumer (ie most people) would quite possibly be unaware that they were different.

 

[WeeWillyWonka]

Indeed, but you frequently find that what you think is an offer of a limit increase is actually an offer to apply for a limit increase, I got one today from Amex. Fortunately I know what to look for, a less informed consumer (ie most people) would quite possibly be unaware that they were different.

Now you mention this it was an offer to apply and not an offer to increase. Subtle difference but thanks for pointing it out.

 

[BNEFlyer]

I've never had an Amex and haven't had a CC for close to 10 years. Looking at applying for the Explorer or Velocity cards, just wanted to see what peoples opinions were on the credit eligibility. Amex say "I have no history of bad debt or payment default". Well in my younger days I did and I wasn't able to apply for credit for a while, but my current credit reports (Equifax and Experian) both only show 2 cc enquiries in the past 3 years. So technically my history is clean, but how far back can Amex look?

 

[quokka77]

Not entirely sure. How long ago are we talking? If >5y you should be ok?

 

[TomVexille]

I've never had an Amex and haven't had a CC for close to 10 years. Looking at applying for the Explorer or Velocity cards, just wanted to see what peoples opinions were on the credit eligibility. Amex say "I have no history of bad debt or payment default". Well in my younger days I did and I wasn't able to apply for credit for a while, but my current credit reports (Equifax and Experian) both only show 2 cc enquiries in the past 3 years. So technically my history is clean, but how far back can Amex look?

I think they only stay on your file for 7 years

 

[Steady]

I've never had an Amex and haven't had a CC for close to 10 years. Looking at applying for the Explorer or Velocity cards, just wanted to see what peoples opinions were on the credit eligibility. Amex say "I have no history of bad debt or payment default". Well in my younger days I did and I wasn't able to apply for credit for a while, but my current credit reports (Equifax and Experian) both only show 2 cc enquiries in the past 3 years. So technically my history is clean, but how far back can Amex look?

You had 2 credit card enquiries in the past 3 years but haven't had one in 10 - have you been knocked back twice in the last 3 years?

 

[glasszon]

I've never had an Amex and haven't had a CC for close to 10 years. Looking at applying for the Explorer or Velocity cards, just wanted to see what peoples opinions were on the credit eligibility. Amex say "I have no history of bad debt or payment default". Well in my younger days I did and I wasn't able to apply for credit for a while, but my current credit reports (Equifax and Experian) both only show 2 cc enquiries in the past 3 years. So technically my history is clean, but how far back can Amex look?

Order a credit report from VEDA (it's free if you haven't ordered one in the past 12 months) and check whether your credit record still show a default.

If not then you are good to go, the only condition is the default you had is not with AMEX, I heard there is a blacklist AMEX keeps for problematic customers (defaulting on AMEX debts, taking AMEX to courts etc), but it's only a rumor and might not apply to Australia.

 

[BNEFlyer]

You had 2 credit card enquiries in the past 3 years but haven't had one in 10 - have you been knocked back twice in the last 3 years?

Yes they were both declined. The last one was in Jan 2016. Though I've been given finance for two cars, two mobile phone acocounts and personal loans over the past 10 years. All paid off and with no defaults/late payments.

 

[BNEFlyer]

Order a credit report from VEDA (it's free if you haven't ordered one in the past 12 months) and check whether your credit record still show a default.

If not then you are good to go, the only condition is the default you had is not with AMEX, I heard there is a blacklist AMEX keeps for problematic customers (defaulting on AMEX debts, taking AMEX to courts etc), but it's only a rumor and might not apply to Australia.

I've got a D&B report... no defaults or active credit listed (though I do have car finance until next month). I've never had a relationship with AMEX. And my current Veda score is 688. Experian 673.

I'd like to get a CC so I can build up my savings, and if my FF balance also increases, that's a great bonus.

 

[Cynicor]

I've got a D&B report... no defaults or active credit listed (though I do have car finance until next month). I've never had a relationship with AMEX. And my current Veda score is 688. Experian 673.

I'd like to get a CC so I can build up my savings, and if my FF balance also increases, that's a great bonus.

I might be a bit slow, but how does a CC help build your savings? Do you have any idea why the other cards were declined?

 

[BNEFlyer]

I might be a bit slow, but how does a CC help build your savings? Do you have any idea why the other cards were declined?

Maybe it's just my way of thinking, but I will have a bit of extra income to put away each month. And I think the other two were declined because a previous default was still active.

 

[glasszon]

I've got a D&B report... no defaults or active credit listed (though I do have car finance until next month). I've never had a relationship with AMEX. And my current Veda score is 688. Experian 673.

I'd like to get a CC so I can build up my savings, and if my FF balance also increases, that's a great bonus.

Then you should be good to go to apply for an AMEX card, just make sure the other requirements are met and you should have a decent chance.

 

[ramamba]

I've got a D&B report... no defaults or active credit listed (though I do have car finance until next month). I've never had a relationship with AMEX. And my current Veda score is 688. Experian 673.

I'd like to get a CC so I can build up my savings, and if my FF balance also increases, that's a great bonus.

I wouldn't rely on D&B report alone, Veda has more consumer credit providers feeding data into it and hence their report might be more comprehensive. Better get Veda's second opinion and have more confidence with your next application.

 

[theblank]

So technically my history is clean, but how far back can Amex look?

there is no magic secret credit file that some lenders can find. When you do your own credit enquiry, what information you see, is the ONLY thing that a lender can see.
Be aware that some lenders use more than one credit bureau. Each one can contain different information, though my personal experience is that Veda has all the info, the others are a bit scatty, but never have shown anything that Veda didnt.

The only lenders you need to avoid using, are those that you did not have a clean record with. They can keep a black mark against your name for ever and a day.

 

[BNEFlyer]

Thanks theblank, that's what I needed to know. Having been out of the 'credit world' for a few years, I want to make my re-entry as smooth and planned as possible.

 

[Cynicor]

Maybe it's just my way of thinking, but I will have a bit of extra income to put away each month. And I think the other two were declined because a previous default was still active.

I'm still not getting this. You won't be earning any extra. Anything you spend on the credit card you have to pay back within the interest free period of 44 days.

 

[BNEFlyer]

I'm still not getting this. You won't be earning any extra. Anything you spend on the credit card you have to pay back within the interest free period of 44 days.

Maybe it's just psychological then?!

 

[sjf]

Just posting to add another data point to how the Equifax scores are being affected.

Below is the chart of my credit score movements. in a nutshell applying for the Charge and Reserve card over two months resulted in a 122 pt drop.

The details,
Dec/Jan were steady at 903
Early Feb 846 (I believe this was due to the algorithm change.)
Late Feb applied for the Charge Card. then score dropped to 784 in March
Late Mar applied for the Reserve and the score dropped to 724 in April
The May score will be released next week, I'll update with whatever bounce back (if any)is.

 

[sjf]

Following up from my previous post, May's score remained steady at 724 and June's score has now been released and it went +32 to 756

No other activity on the card file since the charge card and reserve card applications