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Do you get a credit file hit when accepting a card credit limit increase invite?

Discussion in 'Property Finance' started by kennyboi, 30th Nov, 2015.

  1. kennyboi

    kennyboi Well-Known Member

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    Hi,

    Just wondering if you get a credit file hit when accepting a card credit limit increase invite from the bank?

    Thanks
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yep.
     
  3. melbournian

    melbournian Well-Known Member

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  4. Redom

    Redom Mortgage Broker Business Member

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    Yes to an increase, pretty sure no to a decrease. I've seen clients cut credit cards out to get over the line, and the lender doesn't know about it (i.e. not on the credit file, needs to be documented in notes/etc).
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I wouldn't think so on a decrease. but some of these credit card companies do a periodic credit check - without any further permission from you. I had one client whose card company was checking her credit file monthly almost.
     
  6. Azazel

    Azazel Well-Known Member

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    Interesting.
    What if you increase it yourself without an invite?
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Offhand I can recall that Citibank and various AMEX providers do this.

    Fortunately it is categorised differently from other data on your credit report, the banks systems tend to ignore it as long as the card has been disclosed in the application.
     
  8. moyjos

    moyjos Well-Known Member

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    hmm interesting. I subscribe to Veda and we have not had any of our CC increases appear on the report.
    Does this means that the subscription report is NOT showing all the activity?
     
    JohnPropChat likes this.
  9. Redom

    Redom Mortgage Broker Business Member

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    Hmm interesting @moyjos, perhaps some don't do checks on income/affordability on the credit limit increase offers. Veda's usually got the finger on the pulse whenever someones looking at your file.
     
  10. JohnPropChat

    JohnPropChat Well-Known Member

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    +1 for this. None of my credit card increase invites ever showed up on my file. Westpac and NAB. Could be different with other banks. Veda have only recently started changing the web interface to reflect new credit history changes like showing credit limits etc

    The routine check is called soft-hit, IIRC, which apparently is also used by some banks before their computer issues an automatic invite to credit increase. Don't quote me on that though.
     
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  11. albanga

    albanga Well-Known Member

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    @JohnPropChat I don't think an invite would ever show up more if you accepted it.
    If a credit hit appeared for an invite that you had no control over there would be mutiny!
     
  12. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'm not sure if it does. I remember upping a CBA card a while back (upon invite) and it didn't appear on the VEDA. I remember them saying it wouldn't.

    Perhaps it's case by case depending on the lender.

    Cheers

    Jamie
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Acceptance of the invite tough means approval for "whatever"............. I expect the conditions on the invite would be voluminous

    ta
    rolf
     
  14. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Any increase will (or should) incur a credit hit as you're applying for more consumer credit. A decrease won't. When lender invite you make an increase, you should probably probably switch the word "invite" with the words, "apply".