Me Here

Hi,

We've just moved to Australia and need to get credit cards. When you try to register online for one you need to give details of somebody not living at your address, like a friend or relative. Does this mean that the person takes responsibility for your credit card debt, or is it just to make sure you are who you say you are? We don't want to ask one of our new friends if we can put them down if they would be taking responsibility.

Thanks

Me

madsad

If you dont want to suggest one of your friends may i suggest the following.

Mr Donald Trump
Trump Towers
Trumpton
TR UMP


Dont know to be honest, but many will, await more sensible answers.

bondipom

It is help track you down if you default on your debt. The CC company cannot ask your friend for the money.

Siren & Brian

I believe that it's simply a personal reference to show that you are who you say you are.

If they wanted protection for your credit, they'd ask for a co-signer who would take responsibility if you default.

Siren

Pollyana

They may possibly write to that person and check that you are who you say you are, but I was told really they just want to see that there is someone in Australia that you know and can vouch for you. (yet another way of preventing new migrants from getting credit!) They don't have to be responsible for the debt.

jimtrish

hi pollyanna,

so, is it hard to get credit cards out there then, or any sort of credit?
cheers

Trish

Pollyana

Main problem is you start from scratch with no credit rating. After that a lot depends on your visa - if you have PR its not so bad - see previous thread on credit cards. However, I'm on the temp part of a spouse visa, no PR for another 15 months or so. We can't get a mortgage without a hefty deposit (even though the Bloke is an Aussie), I can't get a loan, and only one place would give me a credit card- I've had an account there for 2 years, but because I am no PR yet, they still turned me down - took the intervention of one of the staff, who went to school with The Bloke - to get the decision reversed, as he said he would vouch for the family.

Its not as easy as the UK though - they want all the ins and outs of your finances, car ownership, any other assets - the form took 30 minutes to fill in - and that was the staff guy doing it! I also needed pay slips, rent book, statements cos I admitted I still had a UK account, and a copy of my contract from work! For a credit limit of $2000!

NickyC

I work with Credit Card applications. This question is asked of everyone and is not aimed at new migrants in particular. The automated system I work with does no checking of the actual address - it just verifies that one is provided and whatever you put there has no bearing whatever on whether you get a card or not. You can use the name/address of people overseas if you need to.

The people you name on the application are not responsible for your debt and are not contacted at the time of application. They would only be contacted in a collections situation (if you subsequently defaulted on your payments and changed your address) to verify your whereabouts or to assist in finding you.

jimtrish

nicky,

so how hard/easy is it for us migrants ( soon to be) to get credit cards?

trish

NickyC

Automated card applications are 'scored', which is based on various bits of info you supply (things like age, occupation, time at employment amongst others). Applications that get a high enough score, pass the affordability test (you must have enough surplus income, allowing for dependents, to be able to afford the repayments on the card) and have no adverse Credit Bureau report will usually get one. As a new migrant you'll have a clean Bureau report here, regardless of what is was like in the UK! The limit will vary and that's usually dependent on score, income and affordability too. You have to fulfil the FTRA (100-point id) rules plus verify the income you stated, before the card is handed over.

Specific scorecard criteria is well-guarded by the banks, but most will include some check on the length of time you've been at your current address or length of time you've been at your current employer. Even you score low on these items (which you will as new migrants) does not mean you're automatically refused a card. There are other items, not based on time here, that can mean your score is high enough. You're no different (in the system's eyes) from a true-blue Aussie who's just changed their job and moved address.

You're likely to have most trouble in verifying your income, because usually banks want to eyeball a few payslips before being happy your income is what you said it is.

I'd definitely recommend applying for a card with the bank that you have an account with, rather than trying some other provider. Existing customers have a far easier time than new customers, as they're not such an unknown quantity.

bondipom

If you can wait out a while it may be worth waiting for some more fee free credit cards. Every CC I have seen offered by the banks has an annual fee.

I currently use Virgin's mastercard which is fee free. It is administered by Westpac who charge $30 a year for a similiar product. I do not spend enough to be bothered with points.

ABCDiamond

That Virgin Card does appear to be very good, with no fee, and a Low interest rate for those who use the credit part.

If you spend a lot on credit cards, I would recommend the ANZ one.
We pay a $48 annual fee, but on average we get back $150 per year in Myers vouchers, in exchange for the points we get. But that is with spendig $30,000 per on the card

podgypossum

We have a virgin mastercard, and they are very good. the staff are always very helpful and supportive when you phone them. In stark contrast, we also had an HSBC card which has been ceremoniously dumped!!!
Because of all our hassles with our HSBC account and them blocking our bpay system because of their cock ups, we had no way of paying our virgin credit card a few weeks ago. The Virgin staff were fantastic. we werent charged interest for overdue payment and they were quite happy to wait for HSBC to pull their finger out.

suzysu

Well I had no problems getting a credit card (PR) from my bank (National), got a nice credit limit (several thousand dollars), however I put my dad (U.K.) down for a contact. However it depends if you have a job and regular money arriving in your australian account. I just see credit cards as emergencies only.............

ohippy

I currently have a virgin card in the UK. Can I simply transfer it to an OZ one when we move or do I have to reapply ? Anyone know ?