Who's cancelled their Velocity credit card?

Status
Not open for further replies.

burmans

Senior Member
Joined
Feb 21, 2006
Messages
7,705
Solutions
1
Points
1,010
oz_mark said:
I think banks each have there own ways of determining what having a credit card means. Or maybe it is just because they ask in different ways! I have seen forms that ask for my limit, others that have just asked what the balance was etc.

Some people (e.g. me) who put just about everything on a CC would spend a fairly sizeable percentage of income paying it off :)
This is all about the arcane art of Credit Risk Management, so secret in many banks that even their own staff are no allowed to know how their banks credit scorecard (the way they assess credit-worthiness) works.

But yes, some financial institutions assess based on your balance, most assess based on your limit on the not unreasonable basis that this money is available and hence you could turn around in a week and withdraw it all. Same applies to redrawable money on your mortgage. It is a more conservative means of assessing risk but also means you are less likely to fail.

There are of course institutions who are less risk-averse.
 

cpl

Intern
Joined
Nov 30, 2004
Messages
72
Points
0
JohnK said:
I only ever manage to just pay off the interest due for the month. I find it difficult to reduce the outstanding amount. :(

Then you're likely to pay very high interest rates and you don't get interest free periods either! I would consider refinancing ie paying off the card(s) using a personal loan. And STOP using credit cards! [just my personal opinion and not to be confused with financial advice which I cannot provide]

Attention: this site injects advertisements into postings thus making the postings look like as if the advertisements were part of the posting and/or endorsed by the poster. This is not the case. Any information below this text is fake and does not belong to this posting.
 
Last edited:

TravFF

Junior Member
Joined
Jan 9, 2006
Messages
32
Points
0
You might also consider applying for a credit card with an ongoing low interest rate so you're paying less interest each month. Don't be fooled by the introductory rates - the low rate must be an ongoing one if you're to make headway into the debt. I suggest this as an alternative to a personal loan only because I have seen some personal loans with higher rates than some credit cards.

And now for a short disclaimer I 'borrowed' from cpl's previous post...

Attention: this site injects advertisements into postings thus making the postings look like as if the advertisements were part of the posting and/or endorsed by the poster. This is not the case. Any information below this text is fake and does not belong to this posting.
 

one9

Active Member
Joined
Sep 14, 2005
Messages
613
Points
240
JohnK said:
I only ever manage to just pay off the interest due for the month. I find it difficult to reduce the outstanding amount. :(

Yes, I agree with Cpl and travff - if you are not paying off your credit card balance each month then you should not be worrying about credit card points. they are not worth it compared with the interest you pay.

ditch your points earning card and get a low rate card or a personal loan.
 

burmans

Senior Member
Joined
Feb 21, 2006
Messages
7,705
Solutions
1
Points
1,010
And a peice of advice, even if you get a lower rate card or personal loan the rates are still quite large. So my advice is even on a lower rate loan is to ensure you keep paying based on what you are paying currrently on the higher rate. That way oevr time you WILL pay the credit card off at some stage.
 

JohnK

Veteran Member
Joined
Mar 22, 2005
Messages
43,731
Points
3,070
one9 said:
ditch your points earning card and get a low rate card or a personal loan.
The points earning card is not the problem.

Thanks for the advice but the solution is little more complex than that.
 

mileagemax

Intern
Joined
May 11, 2006
Messages
75
Points
0
one9 said:
Yes, I agree with Cpl and travff - if you are not paying off your credit card balance each month then you should not be worrying about credit card points. they are not worth it compared with the interest you pay.

ditch your points earning card and get a low rate card or a personal loan.

Totally agree. Anyone who is not paying off their balance in full should not even think about bothering with frequent flyer points, or status with airlines.

The amount of money wasted on interest and charges would far outweigh.

If I couldn't afford to pay my credit card balance, I would also think about how to reduce travel to save money in the first place.
 
Frequent Flyer Solutions has reopened its highly-rated Award Flight Assist service!

The Award Flight Assist team takes the hard work out of finding award availability and redeeming your frequent flyer or credit card points for flights. Using their expert knowledge and specialised tools, they'll help you book a great trip that maximises the value for your points.

AFF Supporters can remove this and all advertisements

JohnK

Veteran Member
Joined
Mar 22, 2005
Messages
43,731
Points
3,070
oz_mark said:
Baycorp provide two ways of receiving your credit credit file. Either $27 to have it sent next day, or free if you are willing to wait 10 days.

See: Discover your credit history - My Credit File - Australia
I received my free credit report from Baycorp while I was on holidays. Nothing exciting there at all.

There are 5 credit requests in the last 5 years, 2 from citibank, 2 from GE and one from ANZ. Of these, 3 are for unspecified amounts, 1 is for $1 and another is for $10,000 (GE).
 

one9

Active Member
Joined
Sep 14, 2005
Messages
613
Points
240
JohnK said:
I received my free credit report from Baycorp while I was on holidays. Nothing exciting there at all.

There are 5 credit requests in the last 5 years, 2 from citibank, 2 from GE and one from ANZ. Of these, 3 are for unspecified amounts, 1 is for $1 and another is for $10,000 (GE).

I believe this is a good credit report. An average of just 1 credit check each year is a good sign if applying for new credit.
 

acampbel

Member
Joined
Oct 31, 2005
Messages
351
Points
0
Just to get this back on topic ..... I cancelled my Velocity Visa card today. All done over the phone (though the automated menu system on 13 22 65 was a great time-waster). I was asked why I was cancelling the card, so I replied "I have too many cards with high fees."

NAB - "But this card is free for the first 12 months!"

Me - "Yes"

<Pregnant Pause>

NAB - "Which other organisations do you have CCs with?"

Me - "Comm Bank, Citibank, and an Amex corporate card."

NAB - "OK - please destroy the card now and we will send you a final balance."


No serious attempt to dissuade me or do anything about the fee, but I had only put about $1K through it (mostly Virgin airfares) so I was unlikely to be flagged as a valued customer.

Now here's a curly question :- I assisted my wife in applying for a card just before the 15,000 point offer expired, but she then declined to pick it up because there were no convenient branches. I assume that uncollected cards would be binned after a certain time, but should I be wary that NAB doesn't hit her for a "renewal" fee regardless? How do you cancel a card you have never received?


Cheers,


Andrew


.
 

oz_mark

Enthusiast
Joined
Jun 30, 2002
Messages
19,477
Solutions
6
Points
1,440
acampbel said:
Now here's a curly question :- I assisted my wife in applying for a card just before the 15,000 point offer expired, but she then declined to pick it up because there were no convenient branches. I assume that uncollected cards would be binned after a certain time, but should I be wary that NAB doesn't hit her for a "renewal" fee regardless? How do you cancel a card you have never received?
.

Without actually reading the terms to discover when the annual fee is charged (sometimes it is from activation, sometimes from first use), it is hard to know. However, you should check that they actually do cancel it, rather than just assuming that they will. There is no guarantee that they will bin it, or cancel it or anything
 

Tiki

Active Member
Joined
Jul 21, 2004
Messages
779
Points
320
You can access your profile through NAB internet banking and see if your wife is still showing a credit card, or she can if you don't know her password.
 

kyle

Established Member
Joined
Mar 8, 2006
Messages
1,433
Solutions
1
Points
420
I would have thought that the first use of the card would have constituted acceptance of the T & Cs. And since the card has not been used, then they couldn't hit you with the fees?
 

dgruber

Intern
Joined
Oct 8, 2005
Messages
54
Points
0
I would suggest that you consider the "no annual fee" Amex card.
Just remember that when you cancel a card, you still have a "hit" on your credit file so it is worth keeping the card to keep the "credit limit"- even if it sits in the drawer.
Further NAB offers annual fee waivers for the Velocity card (and other cards) if you hold 500 NAB Shares and spend over $7,500 in a year... Eligibility, Criteria and Benefits - The National Australia Bank Group - NABGroup
 

acampbel

Member
Joined
Oct 31, 2005
Messages
351
Points
0
dgruber said:
I would suggest that you consider the "no annual fee" Amex card.

Not sure about the Amex deal, but I have replaced the NAB Visa with the "Free for life" citibank Visa. Much as I enjoyed the free Velocity points I really need to maximise QFF points if I want to get back to the UK anytime soon.

dgruber said:
Just remember that when you cancel a card, you still have a "hit" on your credit file so it is worth keeping the card to keep the "credit limit"- even if it sits in the drawer.

Nope - don't really understand this one. If a financial institution queries my credit arrangements I can show them the cancellation statement. There's no way I will pay an annual fee just to keep a CC in a drawer.

dgruber said:
Further NAB offers annual fee waivers for the Velocity card (and other cards) if you hold 500 NAB Shares and spend over $7,500 in a year

The $7.5K I could manage but buying any number of bank shares is against my religion, let alone $$,$$$s of them.


Anyway, after querying the missus she said that they had mailed the card out ..... but she couldn't be bothered going into a branch for the 100-point ID check. Should be a 5-minute job to cancel then.

My only regret was not getting her an additional citibank card when I rang up to activate it - the call center dude offered me one on the spot but with my wife's record I thought it best to consult her. The guy said that the free additional card may not be available later, but the letter I got from citibank clearly states "$0 per card" as the Annual Additional Cardholder Fee. I have the marital consent now so I'll give it a try.



Cheers,

Andrew


.
 

acampbel

Member
Joined
Oct 31, 2005
Messages
351
Points
0
... but if you want to transfer points to QFF you are up for at least $99 per annum.

I think I'd rather keep my Citibank card with no annual fee AND no rewards fee.


Cheers,


Andrew

.
 

one9

Active Member
Joined
Sep 14, 2005
Messages
613
Points
240
acampbel said:
... but if you want to transfer points to QFF you are up for at least $99 per annum.

I think I'd rather keep my Citibank card with no annual fee AND no rewards fee.


Cheers,


Andrew

.

I don't think you understand the point that gruber is trying to make. NAB has already left their mark on your credit report, so it is better to keep the card than cancel it.
 

JohnK

Veteran Member
Joined
Mar 22, 2005
Messages
43,731
Points
3,070
one9 said:
I don't think you understand the point that gruber is trying to make. NAB has already left their mark on your credit report, so it is better to keep the card than cancel it.
I think the only time you really need to worry about Baycorp credit report is if you have been missing repayments, phone, credit card, home/investment/personal loans, and you get black mark against your name.

Simple credit inquiries to Baycorp by financial institutions do not specify the credit limit most times. What is most important is the amount of money you earn, salary and investments, your monthly spend and how much collateral you have accumulated.

I have 5 credit cards and last night applied for the Earth cards and by the looks of the email I received a few hours later the Earth cards have been approved. I applied for the Earth cards mainly for the balance transfer of 0.99% for 6 months and low annual fee of $49 which is waved in first year. Interested to see what credit limit they give me.
 

acampbel

Member
Joined
Oct 31, 2005
Messages
351
Points
0
one9 said:
I don't think you understand the point that gruber is trying to make. NAB has already left their mark on your credit report, so it is better to keep the card than cancel it.

Yes you are right - I do not understand.

I have immediate access to $50K of credit card funds (not counting the corporate Amex) which in an average month is 10 times what I need. My credit report will have exactly 2 entries in it .... one for the dead NAB card and one for the Citibank replacement. Assuming I apply for more credit in the near future (which I don't need) I doubt whether having an entry for a card I have ditched will make any difference whatsoever. Especially since in the current climate of new cards and loyalty programmes there is a high level of churn.

Judging by JohnK's posts the banks love a customer who maxes out their credit and then jumps from card to card trying to pay the least interest. If anything they would probably knock me back for not having enough debt and being one of those pesky customers who pays their cards off in full every month.


Cheers,

Andrew

.
 
Status
Not open for further replies.

Enhance your AFF viewing experience!

From just $6 we'll remove all advertisements so that you can enjoy a cleaner and uninterupted viewing experience.

And you'll be supporting us so that we can continue to provide this valuable resource :)


Sample AFF with no advertisements? More..

Staff online

Top