Fluctuating Equifax / Veda Credit Score - What Can I Do ?

• 

  jimbobaus on 11/03/2018 - 13:52

  +2

  I am lost as to why people use these "credit score" systems

  No one uses the score system in Australia.
  decisions are made when they simply look at your file and make a decision based on the lenders internal policies.

  • 

    John Kimble on 11/03/2018 - 15:32

    +1

    Because most people are ignorant/uneducated on the topic.

    • 

      UcantCme on 23/03/2018 - 10:29

      Okay so my application for an amex credit card was rejected and when I contacted them for a reason they said it was because of the credit reporting agency and when asked which agency they use to check the score the representative said they use equifax.
      Now you guys say no one uses the score system then does that mean they actually have a look at your file for all the things you've done in relation to credit and make a decision based on that?

      • 

        John Kimble on 23/03/2018 - 11:25

        +1

        Yes. They review the whole credit file/history, not just the score.

      • 

        UcantCme on 23/03/2018 - 14:50

        @John Kimble: But the customer care rep told me that the application was rejected by the computer before it reached them. So do you think the computers are smart enough to assess all those variables?

      • 

        John Kimble on 23/03/2018 - 15:11

        +1

        @UcantCme: Yes. It's mostly automated. That's why the websites say "approval within 60 seconds" etc

      • 

        eggles01 on 02/07/2018 - 19:19

        the credit score is the first item the major amount of lenders look at,if you have a bad low score they do not waste time going ahead with the application as it is a warning that your credit past has problems,then as long as have a good score and pass all their required information like income etc they then go to get the information from the credit reporting agencies,there are 3 major Credit Reporting Agencies,Equifax (was Veda),Experian and Dun&Bradstreet( they have also changed name)everyone can get their own credit file from Equifax once per year and also when you have been rejected for finance,you can either pay or wait 10-14 days for a free copy sent to your email address,the major part to remember is that when they check your CREDIT SCORE it does not hurt your CREDIT FILE, but each time you apply for finance if they check your CREDIT FILE whether you are successful or not your credit score is reduced,each time you apply,Equifax scores are between 1 and 1200 the other 2 are between 1 and 1000,when applying ask the suppliers to check your credit score and other requirements first and leave your credit file til last as a rejection will leave you with a lower credit score and that and all rejections will remain on your Credit File for 5 yrs,

      • 

        UcantCme on 03/07/2018 - 07:46

        @eggles01: Thanks a lot for that.
        The last time I had applied for a credit card was also my first time applying for any kind of loan so my file wasn't even in the system I guess. Anyways I ordered my credit file after getting rejected and it showed the enquiry from the bank. I waited 3 months after that and applied for the same card and got approved this time. So all's good there.

• 

  DerpFactory on 11/03/2018 - 17:25

  If you have applied for several CC's I think the best way out is to wait so that you are not considered to have:
  "applied for a number of credit cards in a short period of time"

  • 

    eggles01 on 11/03/2018 - 19:28

    +1

    excellent suggestion but it comes down to how urgent you require the funds etc as your score does improve over time,anybody that is low income or pension can apply through Nils loans and the National Bank Stepup loan between $800 to $3000,Nils loans are allowing up to $1500 google for all other information,cheers

  • 

    Damnsmart on 26/06/2018 - 12:42

    True,

    my understanding is "any credit check on your file will be on for 5 years", your credit score gets updated for every month….but, you will see the upward movement for every 3 months… creditsavvy/get credit score shows three months flat before you see this movement.

    if your credit score is low, i suggest do not apply for any more cards as it will make your situation even worse, so, stay low for a year to bring to above average then you can start getting cards/collect points if you wish.

    hope this helps :-)

• 

  eggles01 on 11/03/2018 - 19:18

  How the Credit applications work,
  firstly MOST banks and financial institutions contact(Veda)now EQUIFAX first step they take is to get your credit score,the reason is that if you have a score under 600 out of 1200 it warns the business that has been approached to supply the finance that the person etc may be a credit risk,then they may request the applicants credit file before they either reject the application or take it to the next level and that is "The Henderson Poverty line"(I would suggest you Google this)index which could be the most damaging check they can do,if you are receiving any government payments and do not have any other form of income this Henderson Poverty Line index will outcome sink you,I had a credit score of 944 out of 1200 with Veda now Equifax and could not get a loan,I applied to Society One and the Heritage bank for a loan of $5000 (which is lowest amount I could find)and on both occasions I was rejected by because of the Henderson Poverty Line result,even though after all my living expenses had been paid I had $350 - $400 each fortnight and I was $1200 over the minimum income required,I finally got a $3000 personal motor vehicle loan and I am paying $50 per f/t off that and $98 p/f off my Centrelink Pension Advance loan and according to both institutions I did not have the funds to repay a loan which my f/t payment would be $65 p/t even though I am now paying off $148 each fortnight and I had NO loans etc before applying,
  My suggestion is when you apply for a load/card etc ring and ask whoever you are talking to to see if you qualify to the "institutions requirements before they make a credit inquiry for your credit file",a credit score check does not go onto your file but a request for your credit file does and it also lowers your credit score whether you receive your loan or if you are refused finance,

• 

  eggles01 on 02/07/2018 - 19:54

  If you are on Centrelink payments you really need another form of income as most of the applications I have made were over the phone and I asked questions as I continued, here is my style of application,I am 75yrs,I am on a disability pension and have no other income and have been receiving the dis.pension since I was 49yrs,and if that is ok,I ask,"do you use the Henderson Poverty line Index",I would advise you google up Henderson Poverty Line Index and have a read,if they do use it there is not much chance you will be successful in your application,

  If you only need small amount try the Nils loans as you can get loans for things like fridges,washing machines etc and they now include motor vehicle repairs,you can borrow up to $1500 but you must have a quote for the repairs and if you get it the work must be done by the mechanic who wrote the quote,you get a cheque only made out to the mechanic etc,no cash is given,they work out a payback system by direct withdrawal from your bank each fortnight and give you a reasonable amount of time to pay it back,you can also try the NAB Step up loan you can borrow between $800 to $3000 and low interest loan at this time the interest rate is %5.99 or $50 per fortnight,same as Nils only cheque is made out to whoever you are purchasing from,I borrowed $3000 for motor vehicle,this loan will get you plusses in your credit File but make sure you make payments on time and do not miss any payments.
  goog luck