Hi all,
As a lot of you may know banks are required to provide more detailed credit information as of 1st of July.
I have a few credit cards for points reasons and applied for another a couple weeks ago and got declined by Citibank.
My credit report from credit savvy came through today and my credit rating actually went up from 656 to 767! There is now also information of repayments made on time which is 100%.
Has any one else’s scores gone up significantly or down?
You do realise you “score” is worthless.
Lenders base their decisions on multiple factors and a so called “score” is not one of them.
Nope didn’t realise that. I try and do a few credit card applications a year to get the bonus points and it negatively effects my score but it’s reallly unclear to me how it actually effects my day to day life.
Not true. It is absolutely one of them.
LOL
Nope. No credit facility in Australia uses the advertised and romited a coring systems.
The so called credit score system is an American system that the companies advertising in Australia use to get you to sign up.
I can tell you 100% without a doubt no lender in Australia looks at your score. They create their own determination based on multiple factors including income, existing loans/debts etc and these so called scores have no impact what so ever.
If you are told “you fall below the minimum score” by a lender this is in relation to an internal system and not one that can be “signed up to and monitored”
@jimbobaus:
Well then that's a very flawed system, as the bank you apply with only knows about any accounts you have with them, and then what you decide to tell them. Credit score is based on application and payment of all loan facilities across all institutions. Its the quickest way to see outside of what the client told you.
My credit score has been mostly unchanged over the past few months. It did drop by about 10 points when I applied for a new credit card in April though. Perhaps you got rejected based on your serviceability of the loan considering you have multiple credit cards?
So now you shouldn't sign up for a bunch of credit cards?
Now you deff shouldnt fudge the numbers when they ask what is the total $ credit limit of all the cards you currently have
I got 805 which puts me in the excellent category. A report card my mumma can be proud of.
Your mum might be proud, but not a true OzBargainer - you should be applying for new credit cards every 6 months or so!
I do more often than that and mine is still "Excellent".
Just need to pay them off each month and close when you've got your points.
My Experian (Credit Savvy) score went up by 36 because now Citibank is reporting that I've paid my last 3 bills on time. But they don't have any data from Amex yet (hopefully it will go up further when they start receiving that info after 1 July).
My Equifax/Veda number went up by even more but Get Credit Score doesn't tell you who's reporting what.
My Dunn & Bradstreet (Credit Simple) score still hasn't changed. They have neither of my credit cards listed (just enquiries).
One thing I've noticed that might be a concern for OzBargainers is that Get Credit Score (Equifax/Veda) lists "length of credit history" as a factor. This is certainly part of Equifax's algorithm in the US, so not a big surprise. This makes it a bad idea to churn through cards (because it perceives that behaviour as desperate and sticking to one lender as stable).
One way around this is to ensure that your first credit card is fee free and just never close it, since it seems to be based mainly on your oldest line of credit. We can only speculate but I'd like to know if they'll backdate the age of our accounts (the lenders obviously have the info). All I can see is that Citibank has been reporting since March; we'll have to see what happens when Amex starts reporting. It might end up being that your oldest card just depends on when the lender started complying with the new law.
A good read("https://www.equifax.com.au/sites/default/files/Credit reports and CCR infographic.pdf")
My score went up in May from 646 to 772. I'm hoping it goes up a bit more after 1/July.