Anyone actually been declined for a card due to 'Credit score', despite having sufficient income?

LKeplaffintech on 07/09/2021 - 20:50

New to the card churning game, and everyone's warning about applications impacting the 'credit score', or not to go through too many cards as it will impact your 'credit score'.

Assuming I have sufficient income to service the credit limit, no history of missed payments, will banks actually reject me if I have multiple existing cards / have applied for and cancelled cards previously?

I'm looking for actual experiences where this has happened to someone, not just 'theoretically' what might happen to my credit score.

Financial

Comments

  • pingualien on 07/09/2021 - 21:24

    Nop but ANZ somehow rejects me with no reason why

    • Ryanek on 08/09/2021 - 08:05
      +1

      I'm going to guess your ex works in the ANZ credit department.

  • lubos on 07/09/2021 - 21:30

    Just apply to see what happens. There are people being refused for credit card with excellent credit score and home without mortgage. And also people approved with no assets and just enough disposable income to afford minimal repayments.

    It also depends what card you apply for. The juicy cards are $15k minimum credit limit or something like that which is more difficult to obtain than $3k one. Once I cancelled a card with $25k credit limit and churned to apply with different bank for $15k credit limit. Declined. Always paid the balance in full and was in for points only. That could be a factor too.

  • AirbusA389 on 07/09/2021 - 21:42

    if you are planning to buy property and needing lender's mortgage insurance, Genworth and QBE don't like credit card churners.

    • LemonShapedRock on 07/09/2021 - 21:48

      I didn’t know the lmi insurer do assessments. Can they not offer you lmi if they don’t like your app?

      • miwahni on 07/09/2021 - 22:01

        GNW and QBE can decline to offer LMI for apps that fall outside their own risk appetite.

  • Orico on 07/09/2021 - 22:32

    Yes, happened to me.

    They don't care about your income as much as how much cash you have in your bank.
    I usually give them my savings account and that's enough to get any credit card I apply for.

    Your payslip means shit if you lose your job.

  • StickMan on 08/09/2021 - 11:01

    AFAIK you can also be denied for other reasons not related to credit score, and it'll just return the generic message of 'credit check failed' or whatever.

    Telstra didn't want me on a $45 postpaid phone plan. It had absolutely nothing to do with my credit score, credit file checks, etc. They just had zero history with me as a customer in the last x yrs.

  • Kranbone on 09/09/2021 - 02:14

    Never been rejected but did get asked to submit more information (additional payslip). Gave it to them and was accepted.

    I've stopped churning for now as I'm not spending as much, but also, I'm worried my points accumulated will be worth less as airlines try to recoup costs after a really tough few years.

    https://www.abc.net.au/news/2020-11-07/airline-food-and-infl…

  • El-Rhi on 09/09/2021 - 06:52

    Do you mean the credit score from credit reporting companies like Equifax and Experian, or do you mean the internal credit score that banks use? Banks are required to notify applicants if they were declined due to their credit file, but are not required to tell applicants if they were declined due to not meeting their internal credit score.

    • BerIin on 09/09/2021 - 12:09

      how do we find out why we are declined, ANZ told me there would be a follow up email however i didnt receive one

      • El-Rhi on 09/09/2021 - 12:40

        If it’s due to something on your credit file (i.e. a default) they will automatically send a letter detailing this. If it’s due to anything else they are not obliged to tell you the reason.

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