Hey all,
So I get the consensus that credit scores are bullshit. But how much do credit enquiries matter?
My credit score is 650. I applied for a whole bunch of cards last year, and have only applied for one card about 3 months ago. Would you say its safe for me to apply for a Westpac/Amex double card combo?
Earliest I'd need a homeloan would be in 2 years I'd say (if that).
Thanks in advance!
Credit score is one of the factors in the algorithm that most banks have built into their credit assessment systems. Some banks, once you fail their automated system there's no second chance, so keeping your score as high as possible is a good idea even if you personally think credit scores are bullshit.
These are things that can impact your credit score:
1. Financial enquiries (credit cards, personal loans, home loans etc) How many, and how recently.
2. Utilities enquiries - so every time you change your mobile phone or internet provider, or electricity, there will be an enquiry lodged.
3. Changes of address since the previous enquiry.
4. Changes of employment since the previous enquiry.
The longer your report can remain untouched, the better your score is.
There are changes coming to the credit reporting system soon, which I touched on here: https://www.ozbargain.com.au/node/401445 . At this point I'm not sure how these changes will, over time, affect scores ( have the literature but haven't had a chance to read yet) but I imagine the repayment history information would have to impact scores in some way.
- Utilities enquiries - so every time you change your mobile phone or internet provider, or electricity, there will be an enquiry lodged.
What!? You mean, as a sim slut, my credit score will be impacted?
Yeah, I didn't think utilities like electricity or gas were counted, but I could be wrong.
If you are looking to enter into a 12 or 24 month phone contract, then the phone provider likely makes a credit enquiry first.
This wouldn't happen with prepaid SIMs.
Yep. Post-paid mobile contracts result in a hit on your credit report. TBH I'm not certain whether pre-paid services do a credit worthiness check, but post-paid definitely do.
Thanks guys - appreciate the responses. Might hold off on applying for this card…
650 is pretty low…
edit
far out i have 2 websites to check and one gave me 643 GOOD the other one 810 EXECLENT
enquirers aren't the only factor