Cancelling your credit card

I guess if you are getting 60 days interest free, and are spending to that limit, you are getting a resonably good deal.

 

How do you think this will play out post July when credit information sharing changes Rolf?

 

Perhaps your loan was commercial? (not subject to the NCCP Act)

 

It seems the Regulators have taken almost all discretion out of the system and we are in a world of ticking the boxes and applying rigid formulas. Being a good borrower and showing you never ‘default’ on a credit card payment, and always paying in full before the interest free period expires counts for absolutely zip. I often tell banks I deal with that I never failed to make a loan payment (home, margin L, credit card, etc) on time on any debt, and their eyes just glaze over. That was not a box he/she needed to tick. Absent a major default, that does not help the application they say.

 

For all my applications i used to always put a default figure for my credit cards as i knew they couldnt see my balancrs. Plus i had heaps of cards that i opened for whatever reason eg fee free and put them in my drawer and never used them.

Obviously rules changing now .... oh well. What can you do

 

And we all know that’s rolled out according to plan

 

Good point. Never considered it from that perspective. Memo to myself: get over bitter and twisted about the current environment.

 

Just ask for another card with a lower min limit. Move your points to Velocity or QFF depends on ur CC

If you tell us what kind of CC you have I may be able to give specific suggestions. I’ve been shuffling CCs for ages, at one point I had a $50K CC balance paying 0% interest, money for which Inparked in my offset account. Instant 4% tax-free savings using free money.

 

Do it long enough and they can change their name from Lucky Lad to Toasty (credit) File

 

Yeah the lending manager said I can borrow $300K more for my home loan if I cancelled all my CCs but I said no thanks I don’t need it this time, let me just milk your bank colleagues who approved me these 0% credit card balance transfers who gave me a cheque because I don’t really have any much CC debt to transfer balances from. Yeah they gave me a cheque for the “balance transfer” I was laughing when I deposited it to my offset account.

That was like $2000 free money every year.

 

Would you sell your 'clean' credit file to the Devil for $2000 a year, when you don't need a 'clean' file as of yet?

 

I wonder if reinstating the card would trigger another entry to the credit file?

So does that mean that they can actually see all current card balances soon?

i.e. so you cant just "forget" about that CC you had in your draw and state you have nil CC's?

Do they do that on the guide of you paying off your "other" credit card with that cheque? then you just placed into your offset?

 

No. I attempted to transfer balance to a debit card but their system rejected it for obvious reasons, called them up and was given the option of a cheque and use it “however you want”. That was 3 years ago. They don’t require you to actually pay off the other CC.

But these days most CCs charge 1-2% BT fee at the onset so it may not save a lot of money anymore