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Who's cancelled their Velocity credit card?

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kyle

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Mar 8, 2006
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Are you waiting for the initial 12 month fee waiver to expire before cancelling the card, or have you already cancelled after receiving the 5K or 15K bonus(es) so that you could sign up for a new card in 6 months or so with a new points offer:?:
 

one9

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Sep 14, 2005
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remember that each time u apply for a new credit card, a new enquiry is put on your credit file. so dont apply and cancel and apply for too many credit cards.
 

kyle

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Mar 8, 2006
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Applying for two or three new cards every year is not too bad, is it?
 

one9

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i believe two credit cards in a year is fine.

but if you are applying for three new credit cards every year for four years, then you will have 12 enquiries for credit cards on your credit file. when you go to get a home loan, they will see you have applied for 12 credit cards in the past few years. this would possibly look like you have a problem paying one credit card so keep transferring it to new cards.
 

NM

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kyle said:
Applying for two or three new cards every year is not too bad, is it?
That depends on a number of other factors, including the credit limit for each application, your financial ability to cover the debt (a credit card is perceived as a debt to the amount of the credit limit), age, etc.

Many applications for credit can flag you as an increased debt risk (moving debt between cards to hide a bad history) or just you a customer with no loyalty.

Different providers will view your credit history in different ways. Some will see 2-3 applications per year as acceptable, and others will flag it as a risk factor. It probably depends how desperate they are to hook you into their product.
 

kyle

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I think the only card company that loves me at the moment is Amex.
 

one9

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NM said:
That depends on a number of other factors, including the credit limit for each application, your financial ability to cover the debt (a credit card is perceived as a debt to the amount of the credit limit), age, etc.
....
The credit limit on credit cards does not really matter because financial institutions can not see the credit limits on your other credit cards. When you apply for a card, an enquiry is put on your credit file, but it does not list your credit limit.

So when you apply for credit from somewhere and it asks you for your credit card limits, if you say a smaller amount than what it really is, then they can not tell. Of course if you do this, you may be committing an offence.

But all your enquiries will still show up.

kyle said:
I think the only card company that loves me at the moment is Amex.
Amex is much better at pretending they love you than the major banks.
 

ColinP

Member
Joined
May 1, 2006
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459
Has everyone received their 15,000 points?
I signed myself and Mrs P up for the most recent 15,000 point offer about 2-3 months ago. Still no sign of the points. Should I start chasing them up I wonder?
 

bambbbam2

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Feb 13, 2005
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one9 said:
The credit limit on credit cards does not really matter because financial institutions can not see the credit limits on your other credit cards. When you apply for a card, an enquiry is put on your credit file, but it does not list your credit limit.
I don't know that to be strictly true.. i recently obtained a copy of my credit file and next to some applications are amounts..
 

dikko

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May 16, 2006
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one9 said:
So when you apply for credit from somewhere and it asks you for your credit card limits, if you say a smaller amount than what it really is, then they can not tell. Of course if you do this, you may be committing an offence.
I was lead to believe that it is better to overstate your credit limit, since then oustanding balance is a lower % of available credit, meaning you have a better chance when applying for loans etc. I am sure however there are many urban myths when it comes to credit cards
 

oz_mark

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bambbbam2 said:
I don't know that to be strictly true.. i recently obtained a copy of my credit file and next to some applications are amounts..
My credit card applications have never had an amount specified. The only two that I remember seeing a specified amount were

  • My home loan
  • A mystery enquiry for an amount of $50.
 

one9

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bambbbam2 said:
I don't know that to be strictly true.. i recently obtained a copy of my credit file and next to some applications are amounts..
Are you sure you are talking about credit card applications?

For credit enquries in general, yes some providers will list the amount of credit requested (especially for large credit eg. loans). But it is very uncommon for this to be done with credit cards. Check your credit record to see.
 

one9

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dikko said:
I was lead to believe that it is better to overstate your credit limit, since then oustanding balance is a lower % of available credit, meaning you have a better chance when applying for loans etc. I am sure however there are many urban myths when it comes to credit cards
Whilst it varies, many credit providers simply ignore what you write in outstanding balance. instead they simply use a percentage of your credid card limit (eg 5% of your credit limit) when caluclating your monthly expenses and how much you can afford.

I have seen people with too many credit cards and/or too high limits be told that they will need to reduce their credit limits on their credit cards before they can be accepted for the loan. this is a pretty stupid thing, because the bank can't really tell if someone has reduced their credit limit on other financial instution credit cards or not.
 

JohnK

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oz_mark said:
My credit card applications have never had an amount specified. The only two that I remember seeing a specified amount were

  • My home loan
  • A mystery enquiry for an amount of $50.
I have never looked at my credit file but would imagine that it may contain the original credit limit that was given with the card.

My Commonwealth Visa and Mastercard started off with a credit limit of $3,000 and have both had 6 increases to credit limit since then. Some I have asked for, some the bank has offered. I could not imagine the bank informing Baycorp, or whoever is in charge of credit file, everytime a credit limit has increased.
 

oz_mark

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JohnK said:
I have never looked at my credit file but would imagine that it may contain the original credit limit that was given with the card.

My Commonwealth Visa and Mastercard started off with a credit limit of $3,000 and have both had 6 increases to credit limit since then. Some I have asked for, some the bank has offered. I could not imagine the bank informing Baycorp, or whoever is in charge of credit file, everytime a credit limit has increased.
My credit file last year did not an amount for the credit card applications. I am not sure at the time they do the Baycorp check they know what credit limit they will be offering.

Certainly no credit limit increases have appeared on my credit file.
 

one9

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JohnK said:
I have never looked at my credit file but would imagine that it may contain the original credit limit that was given with the card.

My Commonwealth Visa and Mastercard started off with a credit limit of $3,000 and have both had 6 increases to credit limit since then. Some I have asked for, some the bank has offered. I could not imagine the bank informing Baycorp, or whoever is in charge of credit file, everytime a credit limit has increased.
The Commonwealth Bank does not provide credit limits to Baycorp when they do an enquiry for a credit card.

It is impratical for a bank to do so, as they don't calculate what credit limit they will offer you until they have looked at your credit record. and if they want to provide credit limit information to Baycorp, they need to do it when they enquire (before they get the information). They could provide the requested credit limit by you, but this is not very useful as you may or may not get this credit limit.

John - I would recommend getting a copy of your credit file. It is free and interesting to see who has checked on your file.
 

Mal

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This is the standard Credit Reference report entry for a new credit card application:

<BANK>* made an enquiry on <DATE> in reference to an application for a Term account where you applied as the Principal for an unspecified amount.

Or:

<BANK> made an enquiry on <DATE> in reference to an application for a Continuing Credit account where you applied as the Principal for an unspecified amount.


And here is one for a Bank Loan type situation:

<BANK> made an enquiry on <DATE> in reference to an application for a Loan Contract account where you applied as the Principal for the amount of $.


The only time I seem to get a new credit report check done is when I change some credit cards (eg, Amex did one when I cancelled my Gold Amex and moved to Platinum Amex), or have applied for a new card.

Credit limits don't tend to trigger a Credit Reference check.

Anyways, a lot more details is here: http://www.mycreditfile.com.au/credit_worthiness_guidelines/credit_worthiness_guidelines_default.aspx
 

JohnK

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one9 said:
John - I would recommend getting a copy of your credit file. It is free and interesting to see who has checked on your file.
There may be things on there I do not wish to see. :shock:

I may ask for a copy just to satisfy my curiosity!
 

oz_mark

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JohnK said:
There may be things on there I do not wish to see. :shock:

I may ask for a copy just to satisfy my curiosity!
It is worth doing, and best to check if there is anything strange on it.
 
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