I want to improve my credit before applying for a AMEX.

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fantasy86dj
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I want to improve my credit before applying for a AMEX.

Postby fantasy86dj » Fri Dec 16, 2011 5:10 am

Hi all,

I want some ideas on how to improve my credit before applying for an AMEX Green. I have applied for the Qantas American Express Discovery Card however I was declined 2 months ago.

I currently have these 2 cards:

NAB Low Fee Card - NAB with a limit of $5000AUD

Diamond Credit Card (to open this one you need to have a minimum limit of $18,000AUD which is what I have.

Now I am thinking of going for The American Express Card in the next few years.

I am an Australian so credit works differently here in the sense that the 3 digit scores are not known to individuals. I have got 17 hard inquiries on my credit file over the past 5 years with 3 due to come off next year and 4 to come off in 2013.

So I take it not to apply for any more credit for the next 2 years (no changes in credit limits or loans ect)

I am working full time - earning about 40,000 AUD p.a. and I pay all my cards off each and every month. I am thinking of getting rid of my NAB card (1st one on my list) and just have everything through the 2nd bank (Commonwealth).

What are everyone's thought and ideas to improve my credit to get that little piece of green sitting in my wallet?

Thanks!!

:money: :money: :money:


ooxs
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Postby ooxs » Fri Dec 16, 2011 8:02 am

Howdy Mate,

Here is what the crystal ball is telling me.

1. 17 Applications in three years is a lot but you already knew that. You certainly need to stay away from applying for anything for at least a year. Hard inquiries will stay on your report and used as an indicator for up to two years. Not all hard inquiries are bad, i have 9 this year but was still approved for American Express platinum. That being said, i know any additional application will warrant a denial but i have no need credit anytime in the near future.

You have two cards in good standing but here is a crazy little secret about paying your balance in full each month. Your account is always zero and that is what is reported to the credit reporting agencies, how is that going to help you? Well it doesn’t. You must maintain a balance for the bank to reward you and it can be as little as $20 but because you don't, it appears as if you have no credit. I had the same issue way back, i paid it full for 3 years and every application was denied until a representative from Discover cards share that secret with me.

The last thing you want to do right now is close an account. You have to use what you have until you get what you want and from what i can see, this is all you have right now.

Start carrying a small balance, no applications for a year or even two, keep both accounts open and in good standing.

fantasy86dj
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Postby fantasy86dj » Fri Dec 16, 2011 9:13 pm

Thanks ooxs

What I will do then is to put the money I would have put onto my credit card each week is to put it into a savings account with both banks and then transfer the money over onto the credit card a few days after the statements get finalised.

I really need to stay away from applying for credit for another 12 months ideally another 24 months. I used to get depressed and apply for credit just to get declined - hard to believe but true!

Ironically my statements finished last night and I have not used either one of my cards today so I can start this new method today :-)

Now to start working to get my history back to the way that it should be. It was so nice of you to tell me that little secret - thanks a million!

fantasy86dj
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Postby fantasy86dj » Sat Dec 17, 2011 12:22 am

ooxs wrote:Howdy Mate,

Here is what the crystal ball is telling me.

1. 17 Applications in three years is a lot but you already knew that. You certainly need to stay away from applying for anything for at least a year. Hard inquiries will stay on your report and used as an indicator for up to two years. Not all hard inquiries are bad, i have 9 this year but was still approved for American Express platinum. That being said, i know any additional application will warrant a denial but i have no need credit anytime in the near future.


Applications in Australia stay on your report for 5 years

ooxs
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Postby ooxs » Sat Dec 17, 2011 10:13 am

Thank's for the update, i will remember that. I feel better now about our consumer friendly 2 year rule.

CC Deville
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Postby CC Deville » Sat Dec 17, 2011 1:44 pm

Keep in mind you are asking American consumers regarding your Australian credit. I would assume that Australian banks (even divisions of American banks) will have different rules and items that they review prior to approving a credit card product. I would also venture to think that Australian banks might be more strict than American banks (afterall, one does not hear about an Australian melt down with credit like the rest of the world).

You will want to have a higher score (whatever that may be in Australia), keep your inquiries down as well as your balances and you shouldn't have too much difficulty.

fantasy86dj
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Postby fantasy86dj » Sat Dec 17, 2011 3:30 pm

I know a lot of people on here are American - just though that I would ask. Yes the 5 year rule here is really really not good and I really think it needs to be shortened.



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