Question time:-
As a true ozbargainer, I have followed the trend to open all the bank account that give free $50 or credit card that offer freebies (and close them afterward). However, yesterday my workmate warn me keep opening and closing bank account/credit card will lower my credit record history and thus will give me a hard time later in future.
is this true?
This was discussed recently, and there were varied opinions. See this thread: http://www.ozbargain.com.au/node/103802
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Applying for multiple credit cards (ie multiple credit requests/checks) may have a negative impact. I say MAY, not necessarily will. Closing has no impact. What would affect your ability to acquire credit is your current combined credit limit on all cards even if you're not using the card. Sometimes banks will ask you to close cards before they can provide a loan (e.g reduce your non-secured credit sources)
As for Debit Cards or savings accounts etc - They have no impact.
Note: From what I've heard, Australia will be switching from a basic negative credit rating (eg defaults, refusals etc) system to a positive one which would include things like paying bills on-time etc. So that's something to watch out for to maintain a good rating.
Some basic info http://completecreditfix.com.au/articles/upcoming-changes-to…
Keep eating the fat from the banks and worry about the consequences later. I oppose the notion of credit anyway and would do anything to avoid being indebted to them so it doesn't really affect me.
Trust me, in a few years even those who don't need credit (eg no home loan, no credit card, no postpaid phone etc) will NEED a good credit score to get basic utilities.
Agreed. I can't believe after seeing the way this works in the USA we are letting it happen here.
Particularly given how tight lenders are here vs USA (see: subprime mortgage crisis)
Greed trumps all :)
Applying for too many credit cards in a short period of time does adversely affect your credit history. I applied for an American Express credit card that was declined because I had too many credit checks in a short period of time.
Uh no, I doubt many people not looking for credit cards do that. Not worth the $50 unless you're already wanting to get a credit card.