I've been taking advantage of a number of credit card sign-up deals lately in order to build up frequent flyer/reward points.
So far it hasn't had much of an impact on my credit rating, but are there any consequences of this sort of churning that I should be aware of before I go sign up for yet more cards?
" If you are keeping all the cards, if you ever apply for a home loan or any other form of finance, all those card limits will be considered a debt and liability and reduce your borrowing potential."
true. but just use a broker, and tell him or her you will close all but keep one of your credit card. pick one has mid limit so its not too obvious.
I don't plan on getting a home loan at the moment so that issue should be alright (though I'd happily close a number of accounts if it helped me increase my borrowing).
Interesting about the financial firms' discretion to reject applicants for closing too many cards. Any idea how many would start to scare them off? I guess I'd best not cancel any cards until I get approval for a new one!
I dont understand the need for having so many card, and I mean NEED. If you are living off so much credit then you may need to reassess your spending habits.
This is a digital world we live in, everything we do is tracked and monitored. When you have a card approved they look into so much more then your credit history. Creating an account and sending out cards costs money, it would be in their best interest to ensure you are not wasting their time.
Dont think he NEEDS the cards but its just to make money off them, by taking advantage of all their deals etc.
Yep, pretty much it. I can survive without all the freebies but will happily take advantage of as many as possible without harming my credit rating!
I wonder how much they consider that I have as a debt on my Diners Club charge card as it appears to have no limit. I use it for free airport lounge access.
At a guess…
1 for free travel insurance
1 for OS transactions
1 for balance transfer (free loan)
1 to put the balance transfer into.
1 for rewards, purchase protection
1 for frequent flyer sign up bonus + complimentary lounge passes
All of the above would be No annual fee for life
…..So probably a true Ozbargainer needs 6
1 for free travel insurance
Bankwest Zero Platinum
1 for OS transactions
Bankwest Zero Platinum , 28 Degree
1 for balance transfer (free loan)
Waiting for offers
1 to put the balance transfer into.
Bankwest Zero Platinum (Call centre says no fee to withdraw credit component)
1 for rewards
Too many to mention
1 purchase protection
Bankwest Zero Platinum
1 for frequent flyer sign up bonus
AmEx, Qantas, Virgin Money cards
1 complimentary lounge passes
No idea
Not sure if still the case, but used to be that when you close a card the new credit card company checking your history can't tell if the old closed cards were closed by you or the credit card company. So factor in that it was closed because it was not maintained to their terms.
this is often true, I just got asked about several credit cards which I previously closed while going through a mortgage refi
Yes I am wondering this as well. I do a balance transfer about once every 2 years. Do you think that will effect my credit rating very badly?
Provided you are closing the cards once you are finished with them, the only downside would be the data trail it would be leaving behind you. Financial organisations will be able to see the number of cards you have had then closed and could start turning you away because they are wasting their time and money on you. If you are keeping all the cards, if you ever apply for a home loan or any other form of finance, all those card limits will be considered a debt and liability and reduce your borrowing potential.