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  1. #31
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    Quote Originally Posted by turquoisecoast View Post
    the low score comes about because of frequent credit inquiries, ie changing credit cards often as you're applying for new credit every time you change cards.

    paying a balance off in full, taking advantage of reward programs and not paying interest has no impact on your credit score. a bank can't penalize you because you're an unprofitable customer to them.
    Yes I get why the low score, I'm just saying it's stupid as it reflects very inaccurately my credit situation.

    If you close your credit card, you don't have access to its line of credit anymore so it should have an impact on your credit score but it doesn't.

    Banks are not huge fans of people opening cards just for the bonuses and closing them off a couple of months later. One bank told me it was the reason why they wouldn't give me a credit card. Fair enough and smart thinking on their behalf 😉

  2. #32
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    Turquoisecoast a mortgage would have improved your credit ratings.

    Having a mortgage is being a very profitable customer to your bank 😉

  3. #33
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    the credit score isn't comprehensive in that it doesn't take into account your overall net asset position. but I wouldn't call it "stupid" either. it has its limitations and it's just designed to provide a rating/score based on the number of credit applications you've had.

    stop applying for credit and your score will improve.

  4. #34
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    Quote Originally Posted by turquoisecoast View Post

    stop applying for credit and your score will improve.
    I get what you're saying, but people should be able to chase freebies and 'churn', i think, rather than being stuck with a card that's costing them money they don't need to be paying. Just my opinion, from a consumer's perspective.

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    HeavenBlue  (28-07-2015)

  6. #35
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    Quote Originally Posted by turquoisecoast View Post
    the credit score isn't comprehensive in that it doesn't take into account your overall net asset position. but I wouldn't call it "stupid" either. it has its limitations and it's just designed to provide a rating/score based on the number of credit applications you've had.

    stop applying for credit and your score will improve.
    I'm not trying to improve my score, I'm pointing out shortcoming of the rating that's all.

    I find it stupid and useless as it doesn't even take into account how much debt you are actually in.

    But I'm not penalised by the system so don't care too much just thought I would add a different opinion to this thread.

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    A-Squared  (27-07-2015),Mambo  (27-07-2015)

  8. #36
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    Quote Originally Posted by ExcuseMyFrench View Post
    I'm not trying to improve my score, I'm pointing out shortcoming of the rating that's all.

    I find it stupid and useless as it doesn't even take into account how much debt you are actually in.

    But I'm not penalised by the system so don't care too much just thought I would add a different opinion to this thread.
    It's a score that doesn't seem to differentiate between savvy shoppers and financially distressed.

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  10. #37
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    Quote Originally Posted by turquoisecoast View Post
    the low score comes about because of frequent credit inquiries, ie changing credit cards often as you're applying for new credit every time you change cards.

    paying a balance off in full, taking advantage of reward programs and not paying interest has no impact on your credit score. a bank can't penalize you because you're an unprofitable customer to them.
    Didn't mean to thank.

    You do get penalised when you change banks because you have a new credit enquiry so it goes hand in hand. I think EMF was simply stating that fact. The system has flaws as it doesn't take into account your net position which I don't see as hugely effective. You should be able to shop around without being penalised for that.

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    shopping around is not the same thing as applying for credit. you don't need to apply for a credit card to be able to assess the risks/rewards associated with the card. if you're constantly chopping and changing cards, you bear the cost associated with that behavior. it shouldn't come as a shock to anyone that frequent credit applications are going to reflect unfavorably on your credit score.

  12. #39
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    Default Found out why my credit rating is so bad

    Quote Originally Posted by ChelleBH View Post

    You do get penalised when you change banks because you have a new credit enquiry so it goes hand in hand
    you've misunderstood what I said. my point was, the banks can't give you a bad credit rating for doing the right thing, ie paying off monthly balance in full, avoiding paying interest etc.

    at no point was I talking about changing banks. of course changing credit cards looks bad on your credit score as its a new enquiry.

    by "unprofitable" customer I mean to say you're not making the bank any money...you don't pay them interest. they can't penalize you for that.

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    that sounds like when you go to the bank for preapproval on a loan. they'll tell you a ballpark figure but it's as far as you can go without actually applying for the loan and consequently having it on your credit score. this was also bothering me when we were applying for our home loan, not being sure how far you could go with them before it was recorded on our credit score. I made sure to check beforehand though.

    the preapproval figure is just theoretically how much they might be ok with loaning to you so long as all the important stuff checks out.


 

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