High credit card limits 'will hurt with new laws'

People who have a large credit card limit may not fare too well with laws that are set to be implemented in 2011, according to one commentator.

Having a high credit card limit could be problematic for Australians when new laws are introduced next year, according to one writer.

Nick Gardner, for News Limited Newspapers, said the outstanding limit on credit cards, rather than the balance, will be taken into consideration when a credit report is being prepared.

It is one of the things that people should know about the new system, as well as the abolishment of an Aussie credit blacklist meaning instead negative instances such as bankruptcies will just be recorded as "bad".

Mr Gardner added: "Different companies assess you in different ways, so somebody may get refused credit by one company, but accepted by somebody else."

The agencies will now be able to collect positive information rather than just negative data with the new system, however bankruptcies can be a blip on a personal record for up to seven years.

Earlier this month a UBS survey found that credit standards could be set to tighten more over the next six months, as reported by the Australian Associated Press.

By James Leyfield