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

[blueythecat]

I agree banks must get some value or they wouldn't pay for the scores. However, you can have a lousy score and be in a great financial position, in which case many lenders will issue a card

Indeed, which is why one's credit score only makes a fraction of the fascinating pie

 

[nightelves]

Indeed, which is why one's credit score only makes a fraction of the fascinating pie

You think so but two statement which says your application was rejected based partially or wholly on your credit file seem to suggest otherwise.

 

[blueythecat]

You think so but two statement which says your application was rejected based partially or wholly on your credit file seem to suggest otherwise.

In your case I can see what you are saying is true. Perhaps when they said you were rejected on your "credit score" they may have meant their own internal Westpac "credit score" rather than the ones they purchase from the reporting agencies like Veda.

I would be extremely worried, and surprised, if a big 4 bank was accepting or rejecting credit applications based solely on a credit reporting agency score. If I'm wrong remind me never to invest in that bank!

Annoying to be rejected for a card though - I can imagine!! :-(

 

[nightelves]

Yeah not sure about the Big 4 but Macquarie directed me to Veda to obtain my credit file to check why I was rejected.

 

[Pleb Status]

There is a big difference between the credit scoring system and the existing credit file system.

The credit file reports actual facts and is useful for credit providers as it will report recent applications and defaults. I assume this is what the banks pay for.

The credit score is some made up value which can vary by hundreds of points based on some algorithm which is hidden and makes gross assumptions on very limited information.

 

[burmans]

You think so but two statement which says your application was rejected based partially or wholly on your credit file seem to suggest otherwise.

I wouldn't read too much into this, in most cases this would be partially. But some lenders just won't lend to people with a default on their file (or a recent default, or multiples of defaults). in this case this would be wholly based on your credit file. Credit providers don't want to give specific detail to any one customer hence this generic message. 95 - 98% of the time it would be partially I'd suggest.

 

[get me outta here]

I just saw this on my Veda credit report summary, Amex seems to "file access" quite frequently. Have not applied for an Amex card since June 2015. But, thinking of another one by end August.

20 Aug 2016	VEDAADVANTAGE PUBLIC ACCESS
30 Jun 2016	AMEX CREDIT DEPARTMENT
31 May 2016	AMEX CREDIT DEPARTMENT
30 Apr 2016	AMEX CREDIT DEPARTMENT
31 Mar 2016	AMEX CREDIT DEPARTMENT
29 Feb 2016	AMEX CREDIT DEPARTMENT
20 Feb 2016	VEDAADVANTAGE PUBLIC ACCESS
31 Oct 2015	AMEX CREDIT DEPARTMENT
30 Sep 2015	AMEX CREDIT DEPARTMENT
31 Aug 2015	AMEX CREDIT DEPARTMENT

 

[andye]

Seems to be standard practice for Amex (and HSBC). Im pretty confident it doesnt affect score

 

[blueythecat]

I just saw this on my Veda credit report summary, Amex seems to "file access" quite frequently. Have not applied for an Amex card since June 2015. But, thinking of another one by end August.

This is indeed very common for AMEX and being a "file access" it doesn't have any effect on your credit score. No idea why they bother doing it though - seems a bit unnecessary really.

 

[trippin_the_rift]

This is indeed very common for AMEX and being a "file access" it doesn't have any effect on your credit score. No idea why they bother doing it though - seems a bit unnecessary really.

It could be quite valuable if Amex knew which other cards you hold or have recently applied for.
"360 degree view of the customer" and all that.

 

[blueythecat]

It could be quite valuable if Amex knew which other cards you hold or have recently applied for.
"360 degree view of the customer" and all that.

True true.

 

[WeeWillyWonka]

I just saw this on my Veda credit report summary, Amex seems to "file access" quite frequently. Have not applied for an Amex card since June 2015. But, thinking of another one by end August.

20 Aug 2016	VEDAADVANTAGE PUBLIC ACCESS
30 Jun 2016	AMEX CREDIT DEPARTMENT
31 May 2016	AMEX CREDIT DEPARTMENT
30 Apr 2016	AMEX CREDIT DEPARTMENT
31 Mar 2016	AMEX CREDIT DEPARTMENT
29 Feb 2016	AMEX CREDIT DEPARTMENT
20 Feb 2016	VEDAADVANTAGE PUBLIC ACCESS
31 Oct 2015	AMEX CREDIT DEPARTMENT
30 Sep 2015	AMEX CREDIT DEPARTMENT
31 Aug 2015	AMEX CREDIT DEPARTMENT

I've also wondered this with my account. I think I'll call them this week and ask why they keep accessing my credit file.

 

[Pleb Status]

Only one month after being assessed as being 'likely to default in the next 12 months' (with absolutely no evidence to back that assessment up), Veda now believe I am 'less likely to default in the next 12 months'.

I assume they will spin the wheel next month and come up with a new score. It would most likely be as accurate as whatever system they use now.

 

[grounded]

I didn't get my score at the start of this journey, but here's my data points:

May 2016 - opened - Amex Platinum
July 14th 2106 - Veda score - 734

July 2016 opened - ANZ Black QFF
August 15th 2016 - Veda score- 671

August - opened Bankwest Platinum
Sept 1 - Veda score - 520


(needs to lay low for a bit)

 

[burmans]

I've also wondered this with my account. I think I'll call them this week and ask why they keep accessing my credit file.

Credit Providers do have an ongoing responsibility to lend responsibly. Part of this is to monitor your repayment capability for an sign of stress. Apart from monitoring your own records, some credit providers also do periodic access to your credit file, the main reason would be that if they can see a sudden surge of you applying for other credit this may indicate you are under financial stress (and yes, statistically there is such a relationship though clearly this isn't the only possible reason).

I actually thought there was some question as to whether they could continue to do this with the new Privacy Act (unless there was a reason to believe you were having trouble paying) but clearly they have had advice they can.

 

[miceking]

It cost me 50 VedaScores to get the new AMEX Explorer card, not happy:-(

 

[blueythecat]

It cost me 50 VedaScores to get the new AMEX Explorer card, not happy:-(

That's not too bad a "penalty" at all - especially if you got the bonus points!

 

[Isochronous]

My Explorer application sent me plummeting by 140 points!

 

[marki]

My Explorer application sent me plummeting by 140 points!

Horrible !

 

[andye]

I'm guessing there are various 'cliffs' in the system that send things plummeting i.e each application will send you down 30 points or so but the 6th (say) in a year or 10th over 5 years (say) makes a bigger impact