Home Loan Refinance and Effect on Credit Rating

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  capslock on 31/05/2022 - 09:52

  +1

  Of course

  • 

    stirlo on 31/05/2022 - 10:42

    +1

    Incorrect. You credit score will actually likely increase. Credit scores are NOT the only metric banks use for giving you a loan however.

    If you jump banks frequently (less than 1 year) they will notice the pattern in your credit report and will eventually start knocking you back regardless of your credit score.

    Commissions/bonuses are normally paid at the 1 year mark so if you get a reputation for staying less than a year they will no longer want to sign you up.

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  timothy2 on 31/05/2022 - 10:14

  I moved between 3 banks in 6 months for cashback offers. I tried to move again for another offer at around the 8-9 month mark and was knocked back and told I’ll now high risk. Credit score didn’t decrease, I think it actually increased. But the banks don’t like multiple enquires in a short time period. I reckon once every 6-7 months is safe as banks usually like to see 6 months of repayment history.

  • 

    netjock on 31/05/2022 - 11:11

    and told I’ll now high risk

    Flight risk.

  • 

    amoo-handy on 31/05/2022 - 21:54

    Thanks for sharing your experience, I'm on my 2nd offer this year and was thinking of jumping on the 3rd
    Might hold off for now but its so easy and so worth the cashback

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  freefall101 on 31/05/2022 - 10:34

  +3

  Less about credit score, more that banks can clearly see your loan history. They'll simply say no because they can see why you're jumping banks.

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  ScubaSteve33 on 31/05/2022 - 10:49

  +1

  Doing this doesn't actually harm your credit score

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  tsunamisurfer on 31/05/2022 - 11:19

  Banks want to 1) not lose money, 2) make money.

  Taking on a constantly jumping client does not reconcile with the above.