Credit Score Dropped 58 Points - Closing Credit Card

dutchcakes on 28/11/2018 - 10:27

Hi Guys,

I got an email from CreditSavvy that there's been activity on my credit file. I checked, and it's dropped 58 points.

What I noticed when I logged in was that there was a new activity under the Credit Report Summary that is called “Your Credit Accounts and Relationship” which I’ve never had activity under before. When I clicked the activity, it shows as my ANZ card being cancelled (which I did cancel approx. 2 weeks ago). I also noticed it’s now showing the dates I applied and closed the card (I'd had for 8-9 months). Note: I’ve never had any issues with repayments etc. I typically cancel every 6 months to get a new card.

I know the new credit regulations require credit providers to record the dates (as mentioned above). Does anyone know if these new regulations will potentially result in all cancelled cards impacting your score? Or do you guys believe this to be an anomaly? Curious if anyone else has cancelled a card recently and what the outcome was.

Cheers,

DC

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Comments

  • nocure on 28/11/2018 - 10:43
    -2

    Bugger, I just canceled two and lowered a third

  • Topdog on 28/11/2018 - 10:52
    +2

    Give it a couple months and it will be right back up there, I cancelled 3, and dropped to bad, a few months later its 1 point away from being very good.

    I think it has a lot to do with all these new reporting laws, and as more creditors come on board its changing. Nothing to worry about at the moment as our credit providers are still not using the score to determine if an applicaiton is approved or declined, the only thing its current being used for is a better interest rate on your loan

    • dcep on 28/11/2018 - 11:22

      not homeloan right ?

      • Topdog on 28/11/2018 - 11:25

        Not 100% on homeloan, but know its the case for Car/Personal loans

  • jimbobaus on 28/11/2018 - 11:25
    +4

    no need to worry, no one looks at the credit scores shown on those servcies anyways,
    lenders determine your capacity based on their own critera not some random number gerneated by a servcie

    Also.. you probably already know but the way these credit score companies make money is to promote products to you (loans, cc etc) based on the result you get when you check your score.

  • KingJuf on 28/11/2018 - 11:26

    Closed my ANZ Black and applied for travel adventurers in same month, mine dropped 11 points then went back up 16 points.. I'm curious why my score is very average with credit simple but excellent with credit savvy. I know they use different reporting agencies but I didn't expect such a difference.

  • Elwes on 28/11/2018 - 11:34
    +2

    In the US the algorithms most agencies use includes points for the "length of relationship". At least two of the agencies we have here are American, so they'll probably use a similar measure of "stability". But I think in America it's only for your oldest line of credit; people try not to close their oldest card but cycle the newer ones.

  • picklewizard on 28/11/2018 - 12:35
    +2

    Repeatedly applying for credit looks really bad… this is why your score has dropped.

    • dutchcakes on 28/11/2018 - 15:22

      Nah… Been doing this for years man. This is the first time it's dropped

      • Dano33 on 28/11/2018 - 17:09
        +1

        Yeah it's catching up with you mate. Definitely has an impact on your score

  • Typical16-bitEnjoyer on 28/11/2018 - 12:45
    +2

    I suspect CreditSavvy varies your score occasionally to provoke you into logging. Ads and promotions etc.

  • atris17 on 28/11/2018 - 13:02

    Have u been applying and canceling credit card for the purpose of points?

    That y i dont bother to do it, i am looking to apply for additional investment/home loan

    The mortgage agent did check my previous loan, has his activity record as enquiry when i saw my credit report

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