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  1. #11
    Join Date
    Apr 2016
    Posts
    2,343

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    In America it would kill you maxing them out all the time, your score would get worse and worse.

  2. #12
    Join Date
    Aug 2013
    Posts
    1,509

    Default

    John Ulzheimer on Credit Score Myths Video


  3. #13

    Default

    I have recently signed up for all 3 credit score providers and requested up to date credit files.

    Result: none (!) of them store the debt level of any given credit cards. They store the max balance but no info about how much debt are on the cards.
    (and some of them did not even have all the CCs listed I have)

  4. #14
    Join Date
    Oct 2013
    Posts
    1,620

    Default

    Yep, that's the current reporting regime. If you have ever missed a payment you would expect them all to know, but otherwise their information is pretty meaningless.

    Most of the time they won't know when you cancel a card, either. How would they?
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  5. #15
    Join Date
    Jan 2012
    Posts
    1,034

    Default

    Quote Originally Posted by andyp2010 View Post
    Sounds like you're playing a dangerous game there Learning!

    I'm with DBTH, I don't think it'll have much effect on the rates you pay or what's offered to you unless it's a bad score.
    I recently got my credit reports from the 3 agencies. Only one of the reports shows all my cards. It only shows the limits of two of them and makes no mention of how heavily they're loaded. The other two reports show only the same two cards and their limits but again makes no mention of their loading. They all show that I've kept up with payments.

    Andy, why would DB's report only show two of my cards?

  6. #16
    Join Date
    Jan 2016
    Location
    North shore, Auckland
    Posts
    278

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    Why on earth do you spend so much time on 'improving' your credit score?

    Your credit rating should be managed as not being a barrier to getting the sort and level of credit you need... Beyond that you're wasting your time and energy thinking about it.
    This is true - I assess about 3-8 credit reports a day. As long as you have no defaults and limited inquiries - nobody cares about your score.

    The only time the score is relevant is when you look at somebody with no defaults/limited inquiries and you see the score is low - most of the time this means they were insolvent in the past and you double check it.

    In regards to trying to improve your credit score, NZ is shocking at keeping your file updated, people have paid defaults that hang around for way too long and the companies are slack to update them. This is the same for PPSR records.

    As long as you don't apply for finance at multiple places a day and don't default on your loans, you are safe. On that note if you "shop around" for the best rate - you won't get it, multiple inquiries reduce your score and nobody will come back to you with a good rate because we know you will just take it elsewhere, no loyalty and no future customer value.
    Finance Broker - www.creditone.co.nz

  7. #17
    Join Date
    Jan 2012
    Posts
    1,034

    Default

    https://www.interest.co.nz/personal-...mit-less-youll
    Ok, they’ve thrown a spanner in the works. The banks have always taken the credit card limits into account for borrowing calculations but not like this before. 18 months ago, a $10k CC limit would reduce your borrowing by about $25k. Now it's double that. That makes a significant impact for my 6 cards, totalling $112k. The 0% and 1.99% balance transfers are not looking so shiny with fixed mortgage rates about to roll over. For me most of my BTs are sitting on my off-set mortgage so I can pay off and close the cards before it's time to renegotiate rates. Anyone who's fallen for the trap of transferring the balance and then spent on those cards could be in trouble when it's time to renew their mortgages.

    For a quick calculation - Every $1000 credit card limit you'll reduce your borrowing capacity by about $4500 - $5000.
    Last edited by Learning; 19-12-2017 at 09:06 AM.

  8. #18
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,774

    Default

    I put between $5k and $6k per month through my $500 credit limit card.

  9. #19
    Join Date
    Oct 2013
    Posts
    1,620

    Default

    Quote Originally Posted by Keys View Post
    I put between $5k and $6k per month through my $500 credit limit card.
    With regular spending, this is very easy to do. I used to have a regular transfer of $1,000 every couple weeks to my $500 limit credit card. Overpays it, but you just use your own money for a while, keep getting the rewards.

    An alternative are the Charge Cards provided by American Express. You're not allowed to carry a balance, so they give you 30-55 days interest free, then require you to pay your balance in full. There's no 'credit limit' so to my knowledge doesn't count against you.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  10. #20
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,876

    Default

    There were rumblings a while back about credit reporting getting 'fine-tuned.'

    By that, I think they meant it would not just be about paying, but include paying late.

    So it wasn't simply a basic credit rating, it became (or included) a performance record of accounts being paid on time. Or not.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


 

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