Total Credit Card Limits to Affect Credit Rating from 1st July

Qroozn on 09/02/2018 - 06:59
Last edited 09/02/2018 - 09:50 by 1 other user

So I heard this on the radio and then went to check online.
From July 1st lending institutions will be forced to look at the total of your credit card limits (disregarding whether you pay them all off on time or not)

I would like to share something with you

Interesting to read that the Average “ TOTAL credit card limit” is $9,000

Such is the ozbargain life that mine is $35.000.
-15k Citibank Signature for life (was great rewards, insurances, and still free)
- 5k 28 Degrees MasterCard (foreign transactions)
-15k ANZ Black ( great bonus airline/reward plus introductory points).

Perhaps the ozbargain credit card hoarding is coming to an end.

Financial

Comments

  • chumlee on 09/02/2018 - 07:03
    +21

    They already do this. Difference is today you can lie about it as only shows credit enquiries on your credit file but soon it will be shown on your credit file if you have taken up the credit card and how your repayments are tracking

    • CyberMurning on 09/02/2018 - 08:03

      You certain about that? So currently banks can't really tell how many limit we have/how many cc with who etc? Looks like correct from the article.

      • chumlee on 09/02/2018 - 08:31
        +2

        At the moment they can tell you made an application and gives the credit limit but doesn't state if you took up the offer (credit cards, loans etc).

        All the smaller banks have been sharing the data for some time now but the big 4 refused and government has made it compulsory now. NAB is almost 100% there but other 3 only about to start sharing data.

        If you want to lie on your application do it now

        • CyberMurning on 09/02/2018 - 08:55
          +1

          i SEE! alright, lets lie people

        • abc on 09/02/2018 - 13:17

          So which institution should you go for a liar loan the smaller or big banks?

        • ely on 10/02/2018 - 16:42
          +1

          At the moment it doesn't even reliably indicate the credit limit applied for, it's missing on a few in my credit records. Amazing how crap the info is really.

    • Seraphin7 on 09/02/2018 - 09:06
      -4

      That is not correct. Any credit provider has access to your total credit limits. I am currently going through a home loan process and have basically had my credit card limits quoted back to me by the bank.

      • R-Man on 09/02/2018 - 10:27
        +7

        This is not currently true. What's true is any credit provider can have access to your credit report (not necessarily your total credit limits)

        Have you ever reduced your credit limits or closed a credit card? That is not updated on your credit report. I get the feeling you have never done this and that's why your Bank quoted your credit limits correctly?

        For example, a new credit provider can assume you have $20,000 total limit based on the initial applications on your credit report, but you actually have $10,000 after closing or reducing limit. In that situation, the credit provider will not quote your credit limits correctly.

        All this should change when Comprehensive Credit Reporting (CCR) is more widespread.

        • Seraphin7 on 09/02/2018 - 10:42
          +1

          Hmmm, interesting. So what you are saying is that the bank can effectively see the maximum credit limit ever issued on currently open cards, but if those credit limits have ever been reduced, this is not visible?

        • John Kimble on 09/02/2018 - 11:06
          +2

          @Seraphin7: They can see what the limit was when you applied for the credit card. It does not show if it got approved/declined, you closed it or anything else. Ie It's not updated afterwards if you make any changes…except if you get a credit limit increase it might come up as another enquiry (I'm not 100% sure, it's been a while).

        • CyberMurning on 09/02/2018 - 11:26

          @Seraphin7: yeah i heard that is the case. when you apply for $100 bank query your ID. you take it/not, the record is there.
          you reduce in the future or cancel, the same record still there. stupid unfair system

        • R-Man on 09/02/2018 - 13:13
          +1

          @Seraphin7:

          but if those credit limits have ever been reduced, this is not visible?

          yeah exactly. Also if you have closed a few cards over the years, the credit report appears the same as if you've still got them open.

        • asa79 on 18/02/2018 - 13:19

          NAB already does it

      • berry580 on 10/02/2018 - 23:16
        +4

        As a member in the credit team of a home loan provider, I can confirm you're simply wrong.

        If need be, we'd simply call up the bank we suspect an applicant may have a credit facility with to confirm. But we must do that with each bank separately to confirm and there is no automated system that would be able to accurately tell us what your total credit card limit in Australia is.

        This is accurate as of last Friday. I can't guarantee there won't be changes next business day, but at least I haven't been informed of any imminent changes as of yet.

        • JIMB0 on 11/02/2018 - 14:11
          +3

          Wouldn't it be against privacy laws for banks to reveal such information?

        • sj2can on 11/02/2018 - 14:24
          -1

          Hi Berry - the other bank would give their customers details to you? This doesn't seem right…

        • berry580 on 12/02/2018 - 07:49
          +2

          @JIMB0: By submitting a credit application with a credit provider. You must have signed a privacy consent form. Did you not sign it, or did you not bother reading what your signing and/or don't really understand what you're signing?

          If it's the latter two, I'd recommend you to get independent financial and legal advice before signing anything.

    • beigehornet on 09/02/2018 - 12:08

      +1 agree. Every time ive applied for any finance, your total card is taken as your total debt. Not just money owed. So no real change

    • bchliu on 11/02/2018 - 02:00

      Yep. Can confirm they already do this to evaluate your credit limit. Problem is, Credit cards are unsecured loans, so its almost worth triple the amount compared to a secure loan in weighting. I was talking directly with Ken Sayer (Mortgage House) on my loan and basically told me to pretty much get rid of every credit card where possible and consolidate it with low-limited debit cards. My lending limit for mortgage/home loan would go up substantially if I cancelled those since I was pretty much "given" a huge credit limit from my providers.

      • ely on 11/02/2018 - 12:17
        +4

        Yeah, it's pretty stupid though. You can cancel cards, get the mortgage, then get new cards anyway - mortgage lenders may be concerned about credit card limits, but credit card lenders aren't concerned about mortgages.

        Overall I expect comprehensive credit reporting to improve my credit score. I churn through credit cards so if you look at my applications it would look like I could have well over $100k in credit cards open, whereas I currently have only one $15k card. In addition positive information like repayment history will come in which should also look good; I churn through the cards but always pay the bills.

        Overall this change will be good for consumers if they're responsible.

  • CyberMurning on 09/02/2018 - 08:10
    +4

    Once I had 45,000 limit for citi only, and total $25,000 limit all my other cards… Then anz staff approved another $27k cc in just 15 mins sit down at local branch. Crazy banks!

    • smuggler on 10/02/2018 - 19:12

      ahgahahaha…

      Maybe they trust you.

    • arcticmonkey on 11/02/2018 - 00:12

      Just out of interest, why do some credit cards such as the ANZ one OP highlighted have forced minimum limits of huge amounts such as $15,000?

      Why don’t they want someone taking the ANZ card on a $3,000 or $5,000 limit?

      • Samsungnote10 on 11/02/2018 - 00:38

        because they're the high end cards. Usually. Platinum or diamond or whatever fancy word they want to use.

        They will always have a lower limit card of 6k example

        • arcticmonkey on 11/02/2018 - 07:34

          But why do the high end cards have a forced big limit?

          How is it to the banks commercial advantage?

          Are they hoping people spend big and get into debt so they can charge huge interest?

        • CyberMurning on 11/02/2018 - 09:36
          +1

          @arcticmonkey: because high ends has more features and benefit….. These are cost to the bank they need to recover it somehow…

        • Baghern on 11/02/2018 - 10:54
          +3

          @arcticmonkey:

          hoping people spend big and get into debt so they can charge huge interest?

        • arcticmonkey on 11/02/2018 - 11:20

          @Baghern:

          So their commercial strategy is to lend big to medium-high income clients and hope to gain big interest (20%) through missed payments?

          It doesn’t really make sense to me. Maybe high income people that pay their card off each month are in the rarity or there are enough non payers to subsidize the rest.

        • Baghern on 11/02/2018 - 11:30
          +1

          @arcticmonkey:

          yep its scary the debt rich people have

          more money more needs

          more money more debt

          If I earned more I'd be using ubereats or some form of food delivery service all the time

          The other day… I wished one of the local cafes would start a coffee delivery system, maybe $6-8

          Would be really effective if they got security access to building blocks

        • Other on 11/02/2018 - 14:46

          @Baghern: Yes, like business owners where the interest is tax deductible.

        • cybapete on 12/02/2018 - 17:40

          @Baghern:

          yeah i've heard stories of rich people who have most of their salary swallowed up by their mortgage so if they get an unexpected bill they are forced to pawn some jewellery or their rolex to get money then they get it out of hock next payday

      • chumlee on 11/02/2018 - 07:39

        $15K may be huge to you but not to a bank

    • bchliu on 11/02/2018 - 14:13
      +1

      Yeah. I had a big limit from Citi as well during my earlier days which proved disastrous to someone on mid income and took on too much debt. Glad I've paid it all off and never want to be in that position ever again where I'd pay hundreds a month just in interest for it. It's not "evil" but sure as shit, it rakes in money for them. Also was infinitely ripped off by their insurance department that didn't help to add extra debt burden.

  • Qroozn on 09/02/2018 - 08:19
    +2

    The banks are currently able to turn a blind eye. Similar to how they have to manage their “investor vs non investor loan ratio”… they offer the cheaper interest rate to “non investors” and Don’t care if you lie as it improves their ratio and ensures they meet their requirements.

  • Godric on 09/02/2018 - 08:34
    +1

    Only a few lenders to begin with, NAB being the first out of the big 4, next year will be hard to hide them liabilities, you shouldn't be doing so anyway

    • CyberMurning on 09/02/2018 - 08:56
      +20

      nah, smart people has CC but they know they only spend what they can afford, its not fair to treat everyone the same ignoring their IQ level.

  • autolux on 09/02/2018 - 08:50
    +26

    i've been using credit cards for over 18 years, i have never once had a credit card in debt.

    its already ridiculous how stupid the maths behind credit rating is. it is literally so dumb, its like some idiot 1st grader is in charge of determining your credit worthiness. this is (profanity) 2018? its unbelievable, meanwhile they're continually engaged in handing out credit cards to ensnare vulnerable idiots, let alone their general illegal and unethical behaviour to make billion dollar profits. these institutions are criminally retarded.

    • bobbified on 09/02/2018 - 09:33
      -1

      i have never once had a credit card in debt.

      How is that possible?
      When you buy something on the card, the account goes in debt. That's the whole nature of a credit card.

      • autolux on 09/02/2018 - 10:27
        +32

        It goes into debt, but you have a debt free period to repay. So let me rephrase, I've never given the banks a cent interest on any credit card in 18 years.

        • CyberMurning on 09/02/2018 - 11:27
          +13

          @bobbified: most smart people will pay off.
          gee who pay that high interest cc, that is beyond my imagination. dont spend what you cant afford. doesnt matter if that is new iphone 4 or X

        • bobbified on 09/02/2018 - 11:51
          -1

          @dragonindespair:

          most smart people will pay off.

          Not necessarily - the interest rate on the cards are indeed ridiculously high, but sometimes the additional cashflow can be used for other purposes that are of a greater benefit than the saving on the card interest.

          It's a matter of being able to assess the value of each situation.

        • CyberMurning on 09/02/2018 - 12:01
          +8

          @bobbified: agree. i think by gambling in casino we can get higher return than that CC interest. almost guaranteed.

          sarcasm mode on

        • Samsungnote10 on 10/02/2018 - 12:05
          +3

          @bobbified:
          Im 30s
          Got my first credit card as a student. Never paid a cent in interest in my life except for a short period where I was in financial difficulty

        • bobbified on 10/02/2018 - 12:21
          -1

          @hellohello123:

          There's going to be exceptions to everything.

          You can't say that you've "never" and then "except". haha

          Not making fun of your previous situation or anything, but if you ask a younger person why there's a balance on their credit card that's accruing with interest, it'll be because they're also in "financial difficulty". That is, they didn't have the money for something they needed to have at the time (and still don't have the money for it now!).

        • Samsungnote10 on 10/02/2018 - 17:36
          -1

          @bobbified:
          My point was that. It wasn't through lifestyle choices or frivulous spending

        • bobbified on 10/02/2018 - 17:52
          +1

          @hellohello123:

          It wasn't through lifestyle choices or frivulous spending

          What is the difference? They are one and the same thing. What someone considers a "need", you could consider it "frivolous".

          Everyone's got a "choice" - Their "priorities" plays a big part in those choices.

          When I fell into tough times before (I was sick for months and couldn't work), I could've easily gone and taken out a loan. But instead, I made the choice to start selling off some of my more valuable things first to get some money. The things that weren't absolutely necessary went first.
          Even though l wasn't spending much during my times of trouble, my previous lifestyle choices meant that I didn't have much savings to fall back on. I could've easily got past my situation had I made better choices with my money earlier. It was entirely my own problem, but I've since learnt from that.

          It's very rare that anyone literally only spends on the absolute necessities. Then, and only then, when they run out of money, would it be considered "not by lifestyle choice".

        • Other on 10/02/2018 - 18:16
          +1

          @dragonindespair: While your sarcasm mode maybe on, credit cards are very useful to small business owners who cannot raise funds any other way (you need x2 years of records, etc).

          I know one business owner who bought a container from China full of lights and other product - he used $10k of his own savings and $25k off x2 credit cards. He then sold it for around $65k.

          At that rate would it matter what interest rate he paid??? So bobbififed is correct.

          Another example was a guy who used credit cards to put down the deposit for his lease for his new commercial premises (as his money (over $1m) was tied up in new machinery).

        • CyberMurning on 10/02/2018 - 18:21

          @bobbified: agree. i have a friend working in superannuation industry he saw many declaring bankruptcy and need to withdraw their super money.

          they provided list of bills like expensive telstra home internet bills, large mobile phone plans, etc. i mean if you dont have much money why get iphone plan $80/ month>???? and NBN at home? because i want it?? because i deserve proper living? no, no one deserve anything they cant get by them self.

          and there was like current affair episodes where young single mum (really young like 20s) complaining on tv that government doesnt give enough support for her baby. while talking she was smoking ciggy and carrying LV bag infront of camera.
          seriously. we are subsidising these kind of bogans????

        • CyberMurning on 10/02/2018 - 18:22

          @luciferaust: yes that is super smart not just smart. completely agree. no kidding. borrow is fine as long they are smart money.

        • Other on 10/02/2018 - 18:27

          @dragonindespair: I agree that some people are idiots. But what is the solution? Ban everyone because a certain % cannot be responsible? Would that same % borrow off other people or other credit providers (radio rentals, pawn brokers or the bikers?) and still be in the same trouble even if they were banned?

        • CyberMurning on 10/02/2018 - 18:30
          +1

          @luciferaust: difficult. its just the mentality.

        • bobbified on 10/02/2018 - 18:35

          @dragonindespair:

          i have a friend working in superannuation industry he saw many declaring bankruptcy and need to withdraw their super money.

          At one stage, that was me. I had to speak to them on the phone, put all their documents together and write recommendations to the Trustee for signoff.

          To be honest, the after tax amount that gets released for "financial hardship" usually isn't sufficient to make much of a dint. They would've already had to have been on Centerlink for at least 6 months, accruing personal debts and bills.

          "Release on Compassionate Grounds" was a little more forgiving, but there's very limited circumstances that APRA would allow the funds to be released on.

          I don't judge, but I did feel sorry for some of them and hoped that they learn for next time.

        • Samsungnote10 on 10/02/2018 - 18:52
          +2

          @bobbified:
          Well in my case. My family member had sone medical bills.
          So I paid them for it. They paid me back in the promised 3 months. So yeah I paid interest.

          I consider medical emergencies, business debt, unexpected costs such as insurance claim excess to be non frivulous.

          If I were a youngster starting out with not the best financial management skills I'd recommend them not have a credit card
          And if they fall short on a particular month for whatever reason. Borrow off a friend or family. That way they feel more pressure to return it. Rather than pay the 20% per annum interest. And to create good habits

        • CyberMurning on 10/02/2018 - 18:54
          +1

          @bobbified: ah yes the correct term is "financial hardship". Nah they won't learn I guarantee. They will be laughing and go to pub with that money. Little money for you and me but for them who never have $10,000 cash in their bank account, that is good enough for a week beer.

        • CyberMurning on 10/02/2018 - 18:58
          +1

          @hellohello123: I don't like lending to friends. Initially small then bigger and difficult to get back, at the end friends become enemies. Saw many examples already. Just don't.

        • Samsungnote10 on 10/02/2018 - 19:00

          @dragonindespair:
          Totally agree.

          Even asking family members for cash when you pay their bills was a bit of a pain too.
          I don't do this anymore as my family members bills are fairly small

          I remeber when I was 18, my parents were going to buy a new car with cash. I went along with them. And put the 1k or 2k deposit on my card for the points

        • bobbified on 10/02/2018 - 20:54

          @dragonindespair:

          I don't like lending to friends.

          I get what you mean when you say that and it's very true.

          I was brought up in a poor family and I know what it feels like so I hate it when I see my close mates in need. I'm always happy to share and I always think that it eventually evens out in the end - doesn't happen to be even money-wise, but any support they may end up giving me in future, etc. I see lot of the things as being worth more than just money.

        • bobbified on 10/02/2018 - 20:59

          @hellohello123:

          So I paid them for it. They paid me back in the promised 3 months. So yeah I paid interest

          I was actually trying to avoid asking you directly about your personal circumstances. Everyone's got their priorities - in your case, it's family that you judged to be more important than the little interest payable on your card. I don't disagree with your decision one bit and I'd probably do the same.

          It's just we have to recognise that not everyone's got the same ideas about what's more important.

        • Samsungnote10 on 10/02/2018 - 21:48

          @bobbified:

          very true,

          obviously if you feel that living in the moment, and going to the pub every friday night and posh dinners is a life prioriity,
          then good luck to them,
          as long as they dont complain how short on cash they are

        • berry580 on 10/02/2018 - 23:18

          You mean interest free? Lol

        • Baghern on 11/02/2018 - 10:59

          @bobbified:

          Did that a long time ago…

          Did you reject holidays, and golf memberships?

        • bobbified on 11/02/2018 - 11:16

          @Baghern:

          Did that a long time ago…

          What are you referring to here? Way too many comments in this bit of the post that I'm not sure what you're replying to haha

        • Baghern on 11/02/2018 - 11:28

          @bobbified:

          i have a friend working in superannuation industry he saw many declaring bankruptcy and need to withdraw their super money.

          Your response.

          At one stage, that was me. I had to speak to them on the phone, put all their documents together and write recommendations to the Trustee for signoff.

        • Kunalk222 on 12/02/2018 - 06:23

          @dragonindespair: sometimes it is emergencies…

        • CyberMurning on 12/02/2018 - 07:43

          @Kunalk222: of course there are emergencies so saving is the key. I know a friend who feel poor when his bank account has less than $5,000. Compare with other friend who feel super rich when his account reach $2000. He spent half of it the next day. Choices.

        • ronnknee on 12/02/2018 - 10:35

          @bobbified:

          Younger generation here (or at least I'm not part of the older generation). Can confirm that I don't have any debt outside the interest-free periods on credit cards.

        • lestat87 on 11/03/2018 - 03:18

          @dragonindespair: So you would have the baby suffer for the poor decisions of the mother? Dont be fooled into the lie that single mothers, unemployed & pensioners have destroyed the economy. They are a drop in the lake compared to the trillion dollar corporate fraud & evasion. As for her habits, the government consistently fails to provide enough funding for mental health. Education & support are the answer, not punishment.

    • Baysew on 09/02/2018 - 09:57

      If you have never had a credit card in debt you are not using it to its full advantage.

      Care to tell us more about the stupid maths?

      Pretty sure all those vulnerable idiots applied as adults for a credit card.

      • autolux on 09/02/2018 - 10:31
        -1

        There is no advantage to debt on a credit card, they are a short term option. Either have the money to buy the frivolous short term shit you want or don't buy it at all. Credit cards are for mugs, you get cheaper interest rates from loan sharks.

        I shouldn't have to explain the stupid maths, they're financial institutions, they can basically piece together your entire existence to a finer level of detail than any security agency. Using a default value of "your total credit card expenditure risk", without taking anything else into account, such as the age of various limits, and rate or repayments on said cards is beyond stupid. Credit card ratings companies are just another financial racquet, offering dumb "insight" and ratings worth fortunes..

        • Samsungnote10 on 10/02/2018 - 12:07
          +6

          The reality is everyone paid off their card on the due date, then the banks would stop offering credit cards. That is unless they make a lot of money of annual fees.

          At present I have about 7 credit cards. Only two annual fees. (amex)

          So far I've been successful in not paying a cent of interest.
          And I rack up credit card points.

          I love it

        • Other on 10/02/2018 - 18:18
          +3

          There is advantage to small business owners who find it almost impossible to get credit (unless secured by their house).

          Are those business owners mugs?

      • Tech5 on 10/02/2018 - 13:38
        -1

        There is no "advantage" to having a credit card in debt

        • Baysew on 10/02/2018 - 14:31
          +6

          Some of the advantages which are popular on OzBargain -

          Points on purchases
          Interest Free period on purchases
          Zero Interest Balance Transfers
          Cash back on purchases.

          All of which need to have a "debt" on your credit card.

        • Tech5 on 10/02/2018 - 14:49
          -2

          @Baysew:

          When I say debt, I mean carrying a balance that requires interest payment. Of course if you pay it down before interest free period ends, it is an advantage. That is obvious.

        • Baysew on 10/02/2018 - 14:53
          +4

          @zhuang281: Sorry, I was only going off what you wrote not what you meant. That is obvious.

        • John Kimble on 10/02/2018 - 15:06
          +2

          @Baysew: pfft, who writes what they mean these days? That is so lame.

        • Tech5 on 10/02/2018 - 16:49
          -5

          @Baysew:
          A lot of things in day to day life require a modicum of common sense. However, I will try to tailor my responses in the future to suit those without that ability.

        • Other on 10/02/2018 - 18:51
          +1

          Except if you make more money than you pay on the interest…

          I guess that is an "advantage"

        • Samsungnote10 on 10/02/2018 - 18:56

          @Baysew:

          True,
          Points accumulation to some is not worth it (horses for courses)
          If my credit card spend was less than 1k per month I'd probably stick to debit cards or fee free cards.
          However I do spend more than that.

          For those of you who don't see the value, it doesn't work for everyone. Only some people.

          I know there are many people out who travel business or first class every year for free because they've put their purchases on their credit without paying fees.

          I am one of those that hasn't reached my goal yet but will be able to do one of these trips eventually. But it's a bit of work

        • bobbified on 10/02/2018 - 21:08

          @zhuang281:

          If you needed to buy something like a laptop for uni in a couple of months time and there was a huge sale on now where you could save a few hundred bucks, it would possibly be worth it to buy now on a credit card and pay that interest for a month or two. Even with the interest paid, you would still be at an "advantage".

          Just need to be disciplined about actually paying it off.

    • chumlee on 09/02/2018 - 10:56
      +5

      I did when nab had 0% on purchases for 12 months. Paid it all off by end of 12 months but helped with costs of renovation.

      Also had a 1% interest credit card when westpac had a promo couple of years ago. Maxed the card out and put the money into CBA shares and made a nice capital gain as well as fully franked dividend

      • autolux on 09/02/2018 - 11:02
        +4

        Yeah, nicely done. Gaming their system is literally the only valid uses.

      • [Deactivated] on 10/02/2018 - 14:21

        How did you buy shares with a CC?

        • chumlee on 10/02/2018 - 14:24
          +6

          I paid a heap of bills (mine and family members) on my 1% card and took the cash, put it in my account and used it to by the shares

        • [Deactivated] on 10/02/2018 - 14:26

          @chumlee:

          Nicely done!

      • Samsungnote10 on 10/02/2018 - 18:59

        I don't do balance transfers.

        But say you spent your Max limit of 30k. And then did a bal transfer.

        You could put that in ING direct at 2.8%
        That's $840 per year in your pocket.or if you put it against your investment property of say 5%
        Thats $1500 per year in your pocket.

        But you need discipline of not spending that 30k and making sure it stays there.

        Like I said. It's not for everyone

        • Baghern on 11/02/2018 - 11:02

          heh I've considered that concept against a home loan if I ever get one.

          Out it in the offset account then transfer back when done

        • Some Guy on 17/02/2018 - 23:15
          -2

          That $1500 isn't income, no matter how much you wish it to be. It's interest saved. And you'd be better off having that on your PPOR if your investment property is negatively geared.

        • Samsungnote10 on 18/02/2018 - 00:11

          @Some Guy:

          I think youve missed the point entirely

        • Some Guy on 18/02/2018 - 13:57

          @hellohello123: How so?

        • Some Guy on 18/02/2018 - 18:38

          @Baghern: It's a well known strategy. I've got about $40k of BT funds on mortgages. Saves me a worthwhile amount of interest (which is not "income"). Just don't miss a repayment or the BT expiration date.

          In theory, free money could be available if you put it into a savings account.

        • Samsungnote10 on 18/02/2018 - 18:49

          @Some Guy: it doesnt matter whether its called income or savings ot whatever

          Also. Having a ppor debt is a what if situation.
          So what if you had a personal loan at 14%…..

        • Some Guy on 18/02/2018 - 21:46
          -1

          @hellohello123: It most certainly matters. Reducing the amount of interest you pay is not the same as cash in your back pocket unfortunately. Its a good thing to do of course, especially on your ppor.

          As for the personal loan, then you'd use the $30k to pay that down of course.

        • Samsungnote10 on 18/02/2018 - 21:47

          @Some Guy:
          Missed the point yet again….

        • Some Guy on 18/02/2018 - 21:49
          -1

          @hellohello123: How so?

    • callum9999 on 10/02/2018 - 07:26

      Congratulations. Now, as the bank doesn't know you, how exactly are they meant to know that? How are they meant to know if you lose your job or have some kind of disaster you won't start racking up debt?

      • autolux on 10/02/2018 - 09:35

        They do know me. They've got decades of data on me, of my every spend. Like I said, they could model my future decisions down to where i'll be at any given time of the day better than any security organisation. I've also taken out loans etc. have assets, savings, payment histories etc. they know damn well.

        You are missing my point which is, these jackoffs have insane amounts of data on everyone yet they have to apply all these generalised "dumb" rules when it becomes an economic risk and the pretend crackdown comes along with the politicians they're in bed with…. you know, after they've made multi-billion dollar profits handing out money to people and targeting people into debt who are high-risk, oh and skewering the entire economy into a bubble year after year?

        • callum9999 on 10/02/2018 - 09:39

          Nope. Decades of data on you does not equate to knowing you. Maybe your entire life has been smooth sailing yet a big disaster is approaching - how on Earth are they meant to know that from your past data?

          You are missing my point - your claim that past data can 100% accurately predict the future is the only dumb thing here, not the credit scoring system.

        • autolux on 10/02/2018 - 09:58

          @callum9999:

          its not my claim at all, my claim is just that debt and debt repayment ability in terms of your credit score is more complex than, uhhhh duhhhhhh dey have 4x credit card duhhhh with duhhh 40k limit duhhhhh ok denied…

          to argue that it is, is pure ignorance, when these companies have insane amounts of data, that can be used for exponentially far greater modeling detail about a person.

          its one part of the puzzle, that is grey, not black & white.

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