I think so too, se7ven.
WHat would be the case with a line of credit from the equity of your house? Say if your LOC limit is $200,000 I hope that this is not being counted as a $200K debt
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What do you think?Hi _se7en_,
im sure your right, but something to do with the 3% that i just cant remember, not exactly sure what the 3% refers to… but there is something with the credit cards of were they do look at 3% of the debt, but i just cant think of what it is…. and what it is for
…. maybe one of the mortgage brokers on here will know what im talking about…. i just cant remember….
Cheers,
sisUnsure about LOC loans, but would assume it would be the same as credit cards.
The 3% is more likely the amount needed to service the total credit limit (not amount owing)
You are better off with an American Express Card as it does not have a credit limit, and therefore it cannot be calculated (3% X infinity = ?????)
If going for a loan get your credit cards limit reduced to the min, this will give you a greater borrowing capacity. After you get the loan get you limit put back to previous limit.
Thanks _se7en_,
it was driving me insane, trying to work out what the 3% was but now, you made it all clear… [:o)]
Cheers and thanks,
siscredit cards affect borrowing capacity yes. strangely though, charge cards such as amex and diners don’t.
julie
It’s my understanding that the banks don’t look at your credit limit as a ‘debt’ as such, but that they look at the total limit available, and calculate the 3% (yes SIS, it’s the min payment or something) as a monthly payment, therefore affecting your servicability.
Cheers
MelMy finance provider told me when I got my last loan that the whole limit as a debt- because I might have a 5K limit but only have used 2K now.. but I could go out and spend the other 3K before my loan is finalised. Also be careful of getting multiple cards- it will kill your credit rating.
Someone on here once said to reduce your limit on your card before you get a mortgage loan, and then you can raise it again when you have the loan approved- sound advice, I thought. I intend on reducing my limit as soon as I get back to home… it´s too easy to let the convenience of a credit card get out of hand.
Credit cards are probably considered to be `bad debt´in the financial scheme of things- because they are mostly used for consumer items… but then, a credit card can help in establishing a credit history- so they can be good, when used with caution.
kay henry
There really is no such thing as a credit history in australia other than a bad one ie. baycorp only register what credit you have applied for…nothing on how well you went paying it off or what a fantastic borrower you are, they do however keep a register of anything where you have defaulted.
Originally posted by Nat R:There really is no such thing as a credit history in australia other than a bad one ie. baycorp only register what credit you have applied for…nothing on how well you went paying it off or what a fantastic borrower you are, they do however keep a register of anything where you have defaulted.
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PropertyGuRu
I want to be billionaire! [] Hi guys,
Like many things in life, if it’s good, nobody notices, and if it’s bad, everyone has a whack at you.
How you establish a “good” credit history is the same. For example, by having a credit card for 5 years, without any defaults recorded on your credit report, gives you a “good” credit history. It shows the bank that you’ve been using your credit for a while and appear to be paying off your liabilities in full.
The same goes for personal and other loans.
Someone correct me if I’m wrong, but that’s my understanding.
Cheers
EDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
Not quite right…if you did hold your credit card for 5 years without default then the original enquiry would have rolled off your baycorp report and there will be no record of you even having a credit card.
Note: also the baycorp report shows that you made and application with a finance provier but it does not show if you actually took out the finance.
Keep in mind you can have a credit card, run it at max limit and pay the minium amount each month (and pay it late) withoout regisetering a default….is this a good credit record??
Mate, if you wanna make $25, go mow your nana’s lawns, at least she’ll give you a glass of milk and an peanut brownie!
You’ll probably need about a year’s worth of flybuys points just to buy the brownie!
They are a cynical marketing ploy adopted by businesses who prefer to bribe loyalty from their customers with the occasional lollipop, than by creating a loyal customer base through a commitment to quality and service.
The only time I’ve heard of a loyalty program working was when this guy opertaed his business (which he’s not supposed to do) on an amex card (about $150,000 a month volume). So he got himself enough points for a trip to the states, but he had to rort the system to do it.
As you may have guessed … I think loyalty programs are crap. REAL LOYALTY CANNOT BE BOUGHT. Usually you can get a better deal by shopping around so you save on the purchase more than what you miss out on a miserable bonus scheme.
Pardon Me if I have offended anyone.Woolworths Mastercard also offers Qantas Frequent flyer points (can’t remember who asked this earlier in the thread, but there’s the answer), and the annual fees are a lot cheaper than the ANZ Qantas Telstra VISA.
FYI, if you reduce your credit limit to get finance and then you want to increase it again. Understand that there will be a hit on your credit history by the lending organisation for the increase request.
James
CBA have just decreased their FF points per dollar ratios. Std = $2 per point; Gold = $1.50 per point; Platinum = $1 per point
Hey Guys,
is the “fly buys” card still 1 point for every $5 spent?
Cheers,
sis
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