670 Credit Score Bad? Can I Apply for New Credit Card?

Twitchh on 04/03/2023 - 19:33
Last edited 05/03/2023 - 01:23 by 1 other user

Hello, I am 24 years old and just starting to get into the churning credit card game.

I applied for one CC back in 2020 during COVID but it got rejected (was a bit of a rookie move considering my income wasn't that high).

Didn't do anything else regarding credit for 2 years until November last year where I opened up a Citibank CC for some Velocity points promo ($3.5K CC limit). I have made all repayments back on time and had no dramas with it.

I checked my credit score today and it was only 670. Is this low because of my earlier rejection in 2020 or is it low due to the lack of credit history that I have?

Second question, is it too soon to open up a second CC for another velocity points promo? Will this negatively impact the credit score even more?

Thanks,

Poll Options

  • 29
    Open up second Credit Card, it won't impact your credit score negatively
  • 6
    Don't open up second Credit card, it will impact your score negatively
Financial Credit Card

Comments

  • Mechz on 04/03/2023 - 19:44

    So you've only ever had 1 CC, and that's one you opened 5 months ago?

    • Twitchh on 05/03/2023 - 08:37

      Correct

  • Muzeeb on 04/03/2023 - 19:53

    77% of ozbargainers have an excellent credit score so you may be waiting a while for an answer.

  • USER DC on 04/03/2023 - 20:08
    +5

    Why the heck you worrying about your credit score ?

    You should be worrying about approvals and rejections in your application not your credit score.

    • coffeeinmyveins on 05/03/2023 - 12:14

      Because your credit score is an indicator used by credit agencies to determine if you're a good fit? Is it that hard?

    • stjep on 06/03/2023 - 11:11

      The credit score is derived (at least in part) from your approvals and rejections, and determines approvals and rejections.

  • ToyotaCrownHybrid on 04/03/2023 - 20:48

    no one cares man, I've had 12, bought a car on loan, house on finance all by 25. Now 27 and debt free. Not sure it matters.

    • Muzeeb on 04/03/2023 - 21:14
      +2

      Now 27 and debt free

      Did you sell everything?

      • ToyotaCrownHybrid on 04/03/2023 - 21:15

        Of course, sitting on 420K in the bank confused as to what to do with my life.

    • Twitchh on 05/03/2023 - 08:37

      Thanks for the insight :)

  • avoidfullprice on 04/03/2023 - 22:19
    +1

    Where did you check your score? There are three credit agencies each with different scoring system and therefore the number means different things

  • Ozymandias on 05/03/2023 - 00:09

    It’s probably low because of the limited exposure you’ve had to credit thusfar, I wouldn’t stress it too much. I’m 28 and have had a few cards with a credit score between 600-850, these days providers will look at your ability to make repayments rather than a hard look at your exact number.

  • Ughhh on 05/03/2023 - 00:12
    +1

    3.5K CC limit

    Was this the limit given by the bank, or did you choose?
    Most reward cards of platinum and above usually have a minimum limit of $6k.

    • Twitchh on 05/03/2023 - 08:38

      Yeah i made it lower myself

  • Aap Ke Papa on 05/03/2023 - 00:18

    I think you should get a detailed report and see why your score is this low. See who marked you as a risk. See if any incorrect remarks are there and correct them if needed by talking to the relevant authority. Then consider another CC application.

  • El-Rhi on 05/03/2023 - 07:24
    +1

    Which credit reporting agency did you check? 670 means different things depending which one you checked. Either way, as per the below, a score of 670 is decent no matter which one you look at.

    According to Experian 625-699 is considered good
    According to Equifax 661-731 is considered good
    According to Illion 500-699 is considered average

    For context my score for each is 852, 919 and 671 so they all vary greatly depending on the reporting agency. How can I be rated ‘Excellent’ at two and ‘Average’ at another? It is because they all have different algorithms and not all banks send data to each reporting agency. Key message is don’t worry about your credit score from the reporting agencies too much, unless it’s really low (ie, you have missed payments or defaults). While it is factored into the application a bit (most banks would use the Equifax score), banks focus more on serviceability or their internal credit score, rather than the credit score from the credit reporting companies.

    • Twitchh on 05/03/2023 - 08:38

      Interesting, i used Illion so it seems they may be the harsher one?
      Thanks for the insight!

      • avoidfullprice on 05/03/2023 - 08:49

        I find more utility and financial companies query illion plus either Equifax/Experian but not all three. Hence i find my illion score consistently low. But Equifax used to give me lowest score compare to other two, then one day they changed their algorithm and now I’m in >1k.

        Makes no sense just looking at one score, but what they report to each agency.

  • Hoju on 05/03/2023 - 07:30

    I have a score of 855
    Got declined for several minimum limit credit cards and couldn’t even increase my Amex from 4000 to 7000

    The reason they gave was ‘debt exposure’, probably my mortgage (?)

    So I don’t know if that is coming into play but regardless I’ve done multiple CC applications lately that all failed and my score still seems fine

  • taradavey on 05/03/2023 - 08:03
    +1

    The actual credit score number doesn't really matter that much - it's the factors that cause that number that you need to pay attention to. No bank or otherwise will look directly at the actual number. It's probably just that you don't have enough credit - not having much credit can be seen as a bad sign.
    If you want to monitor your credit there are apps/websites that can help! I have clearscore as well as a paid experian credit monitoring (Free thanks to optus breach!) and they both give me almost all the same informaiton - experian is just a bit more detailed. Checking a website like clearscore and looking through all of the 'factors' that affect your credit can give you a better idea as to why your score is sitting where it is.
    Not a bad score at all, just sitting on good :)

  • b0rnwithabeard on 05/03/2023 - 09:33

    Credit scores mean next to nothing in Australia - in the last 18 months I’ve refinanced my home loan, and borrowed more for renovations, and taken a loan for a new car and not once did anyone ask or even mention the words “credit score”. The events that would effect what that score is (i don’t know what my score is) are obviously important but the score itself means nothing

  • HG Dendrobium on 05/03/2023 - 09:52

    When i was 25 my score was around 650, didnt have credit card or bills under my name. 31 now with 2 debts and churned through a few credit card, my score is 800. I believe your score starts low and goes up gradually if you borrow and pay back on time.

  • Wilson Heroes HL on 05/03/2023 - 10:15

    Mortgage broker here. It's depend on what credit agency you use to do the score on but here's a general rundown.

    <500 - Bad
    500-600 - Poor
    600 -700 - Average
    700-800 - Good
    800 + Excellent

    • Mechz on 05/03/2023 - 11:53

      What's the highest you can possibly get and what's the highest you've seen yourself?

      • Wilson Heroes HL on 05/03/2023 - 15:44

        Around 1000-1100 is the highest you can get, the highest I have seen is 1100's

      • HelpMeiCantSee on 05/03/2023 - 16:16

        Mine just bumped up to 970 lol. Though I’ve never had a late or missed payment in 20 years.

  • chami on 05/03/2023 - 13:16

    866…
    I joined Credit Savvy(run by CBA https://www.creditsavvy.com.au/) about 2 years ago, which alert me when there is a change.
    It will allow you to block access to your credit scores.
    It advises me if there has been a change in my credit score in the last month.
    I have just been advised it has changed because I got a new credit card. (churning)
    I am a house owner with had no debt . My score is now 866.
    Pity Credit Savvy doesn't advise more frequently, but at least if something unexpected happens to my credit score, I know about it.

    • b0rnwithabeard on 08/03/2023 - 07:58

      this is the most needlessly paranoid things i have ever heard

  • 2esc on 05/03/2023 - 15:57
    +1

    Credit score? Banks i have used have never once talked about my credit score.

  • Keplaffintech on 05/03/2023 - 21:26
    +1

    Pretty simple, if you have sufficient income to service the debt it is approved. On your first application you did not so it was rejected. Score means nothing.

  • Jono05 on 07/03/2023 - 01:03
    +1

    Do you think the bank cares what your credit score is if you don’t have a job or can’t make loan repayments?

    • Twitchh on 07/03/2023 - 18:25

      Well I was more thinking the opposite.
      Have a job + can make repayments but a bad credit score scenario.

      But comments above have shown me that credit score is not that important.

  • goodfella on 08/03/2023 - 11:42

    To be super safe, wait for another month or so, so your last hard inquiry is "more than 6 months" old. "No more than 1 application in 3 months' time, ideally in 6 months' time. No more than 8 applications in the last 2 years" - is a rule of thumb I figured through my churning journey, speaking to brokers, checking scores in all 3 websites, etc.

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