Here is the offer.
$300 cash back caught my eye. Can I apply for this, use it for couple of months and close the account? Will it affect my credit score in any way? Thanks
Ok. Will that affect my credit score in anyway in future?
I do not know, so I can't answer this question.
Perhaps read some of the existing forum posts https://www.ozbargain.com.au/search/node/credit%20score
Ok thanks mate
Yes.
Depends who you ask. I say not really.
How did you get it free for first year? Was that a targeted offer
Might be targeted. I got it in an email.
From reading some of the CC posts here, my understanding is there are quite a few people that do just this, but moreso with FF points.
Will it affect my credit score in any way?
Yes, every credit application affects your credit score. Whether or not that causes an issue for you is an entirely separate question.
Sorry but what I meant to ask was if I use a credit card for a short duration of time would it affect my credit score in any negative way.
The question makes no sense
I don't know the specific details of the algorithm, but any credit application (all else being equal) will reduce your credit score. That is, if you apply for credit today, you'll have a lower score tomorrow.
This may not be an issue for you in that you are not intending on applying for more credit in the near future, or your score will still be above whatever thresholds individual lenders may have, or you do whatever is necessary to improve your credit score between now and then, etc.
This is pretty thin CreditScore, but I would interpret it as a new enquiry (application) brings your score down and your repayment history (assuming it is positive) brings it up. If you are making credit applications, but not following through with a strong repayment history (i.e. you are just churning credit cards) it would seem to drag down your score down.
The algorithm that credit bureaus use to calculate your credit score is not known to the general public, it's their own IP. I would even bet that within the bureau themselves, only a handful of key people know the complete algorithm (kind of like like KFCs secret herbs and spices) for security purposes (but that is just a guess). It would probably also be refreshed regularly as data and trends change.
It is also different between credit bureaus. Just google "how is my credit score calculated". It's a bit old, but as an example see https://www.commbank.com.au/guidance/consumer-finance/gettin…
Also, some credit providers might not use just your score alone to determine whether they approve or decline your application. They each have their own criteria and your credit score might form a part of this.
Some might not even use credit scores, preferring to use/calculate their own credit risk using your credit history and other factors instead of a single score calculated by a third party credit bureau.
This is why they say "our lending criteria" in their fine print.
When I used to work for a bank, they didn't even sign up to see credit scores. But this was a few years ago and things might have changed or scores might have become more accurate/sophisticated since.
kind of like like KFCs secret herbs and spices
Analogy of the day, congrats.
Any application for credit will affect your credit score, even something as simple as a phone plan. It will show up on your report.
It can be used, have the rebate paid in to it, and then closed whenever after it's paid out.
If you're concerned about future borrowing such as a home loan, it's not really a problem. It can be explained away easily as long as you don't do it frequently.
However, if you have something in the near future (<12m) I'd think twice. There are also much better offers out there via amex for example if you can use the points well.
Lastly, I don't think the fee free offer is for everyone. IIRC it's offered individually, so double check on that first.
Yes. Wait until the $300 has been applied and you have used it to pay off items prior to closing it.