Credit Inquiries from ISP Tanking Credit Score

Lsurfin312 on 25/03/2023 - 09:28

Hi,

I have just got my monthly Equifax report for credit score and my rating has dropped from Excellent (800+ pts in Equifax system) in 2022 up until now and is currently "Average" (500pts). The only changes are a credit inquiry from an ISP for home internet that I got at the start of the year and a change of address/employer (which I believe came with that inquiry). Note I have never had a credit card and always paid bills on time.

I was considering applying for a low limit credit card recently (the spend $2k get $600 back one). Will this impact my chances? I don't understand how an inquiry for internet ($0 credit limit) can tank the score so much but there is no other activity on my credit report. Is this just something that is in the Equifax formula to impact the score but something that actual credit lenders wouldn't care too much about?

Financial

Comments

  • avoidfullprice on 25/03/2023 - 09:45
    -1

    Anxiety is going to tank your chance. You don't want to check your Illion and Experian scores for that matter. Just apply. If they reject application, so be it.

  • EightImmortals on 25/03/2023 - 09:45
    -1

    Doesn't the report tell you the reason for the drop?

  • mskeggs on 25/03/2023 - 09:45
    +2

    This is a great example of how credit scoring is such a benefit to people with good credit /s
    Don’t worry about it, lenders here don’t use scoring the same way they do in the US, and probably never will as the banks are better at it and don’t have to pay a 3rd party to assess you.

  • Tyrx on 25/03/2023 - 10:04
    +3

    Will this impact my chances?

    No. Banks don't use these credit scores for anything. They look at adverse events on your file and make the determination on that.

  • Typical16-bitEnjoyer on 25/03/2023 - 10:24
    +4

    Since credit scores mean jack shit here in Oz and nobody else actually uses them, what did Equifax say when you asked them?

  • AndyC1 on 25/03/2023 - 10:37

    Wait until you apply for the CC and see how you go and then ask the bank if the decline the application.

  • Settero on 25/03/2023 - 10:44
    +4

    Change of address and employer has probably effected the score more than the enquiry listing itself

  • FrugalDealSeeker on 25/03/2023 - 11:09
    +2

    I think the advice available online is a bit misleading as it's not relevant to Australians (due to being heavily written by people in the US)… With the implementation of CCR, the score by itself is mostly irrelevant. As long as you don't have any adverse events defaults, bankruptcies, etc., low credit utilization and don't have an unsustainably high credit limit (for your income), you'd be fine.

    and is currently "Average" (500pts)

    I have <400 Illion, <600 Experian and ~800 Experian. Every 3 months I churn and burn credit cards just fine, latest being Amex Explorer.

  • deme on 25/03/2023 - 12:56
    +1

    Credit score is just made up.

  • Brick50 on 25/03/2023 - 16:25

    The credit card you're talking about is not a low limit card, the minimum limit is 10k. I'd say a low limit card would be 2-6k limit

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