Hi guys, just want some clarification on credit score impact.
I applied for two credit cards in a span of one month. Got rejected one and another one is pending.
Then I got notification from Wisr this morning saying my score is drop 150 points.
I want to ask if rejected for credit card would cause impact to credit cause?
I am a good citizen financially. Paid mortgage on time, spending responsibly. Just hacking credit card point bonus is my habit and I should stop doing this?
Thanks
Making too many credit applications: Making excessive credit applications for credit products in a short period of time can negatively affect your credit score. This can include credit cards, personal loans, phone accounts and some buy now pay later (BNPL) lenders.
That makes cents. Cheers.
Every credit activity affects your credit score. So yes the credit enquiry for the decline card did. Applying for many cards in a short period is a red flag to lenders.
Damn. I thought I paid in full everytime and close cards would be the plus
It likely does .
But the application you made would have dropped it. If u had the card accepted, then used it and paid in full, it might have helped improve your score
It is. Your credit score will lower when you apply, but if you use the card for long enough and do what you said you'll do, it should increase your score to what it was before, and beyond.
Except after I cash out the bonus and cash back, I will close it immediately. No chance for mistake.
@ozgameboy: Bad credit is temporary anyway. If you're gonna apply for a loan for example, you wanna stop credit card churning for a bit and maximise your credit. If your credit scores wasn't already in the shitter, it will go back up over time.
A good citizen financially V's acking credit card point bonus is my habit is not a good way of trying to get ahead financially as it will cause issues.
Why is it issue?
I mean…
No?
What issues?
I want to ask if rejected for credit card would cause impact to credit cause?
Yes
Also applying for multiple credit products in short span flags the bank you are desperate for money, true or not.
Just hacking credit card point bonus is my habit and I should stop doing this?
You are conflating your hack with your execution.
Just don’t apply for second product until after say half a year later.
Thanks mate. Prob will be more cautious this time.
Standard.
I’ve had my score drop for multiple reasons, including moving to a new area, and closing a credit card as well.
Either way it’s never caused issues to apply for more and be approved.
Right, always at sub 900 for the last 5 years and this only happen this week so I really want to know why. I open and close 6-7 card in past 3 year without impact
Paid mortgage on time, spending responsibly.
If you already have a mortgage, why are you worried about your credit score?
Just think ahead if I want to refinance in future with better neg power on rates and they would check the score again
In my experience banks don't give a (profanity).
I refinance semi-regularly, and churn at least 3-4 ccs a year.
I wouldn't worry about it. Do as many as you want, once you start having issues/rejections you can back off. Certain banks will have issues after some time (e.g., I now have issues getting an Amex and Citibank) but most others don't care. Some I have regularly churned every year without issue!
Every card card application will most likely take a hit on your credit score, and having 'rejected' on your history will be even worse afaik.
Good to know but wth they lower your score if you would never use more credit as result of rejection. I assume only more credit in total would affect the score.
It would just show up as an inquiry. Pretty sure rejections are not recorded on credit report.
Rejections don't impact your credit score. Why would they? Applying is one thing, shows that you're potentially desperate for money. Getting denied it? Doesn't really show anything to lenders other than 'you aren't eligible'.
Yeah, Just got approved from another bank after being rejected by the first one. I guess they not showing up at all.
Just hacking credit card point bonus is my habit and I should stop doing this?
Up to you, what is your credit score worth?!?
You should have realised "point bonus" don't come for "free" :/
After the drop, 800+ now with Equifaxand 860+ with Experian. Yeah, lesson learn.
If you're still 800+ then you don't have any issues to worry about.
and if you didn't keep checking you would be non the wiser…..lots and lots of people never bother to look.
I listening to Dave Ramsay recently and I should be worry about how healthy my score it as long as I still in market for house, investment…
Applying for credit too often is like masturbating. Stop doing it unless you can’t
Stop reminding me that on Monday morning in office hours dude.
Do financial institutions take amy notice of credit scores? Ive always thought that it is just a way to get you to log in to their site so that they can sell you something? Maybe its different in the US.?
I think its depend on what credit check vendor they're using. My credit score is strong but apply 2 banks, 1 bank rejected, another one approved 4 days. Weird.
There are three scores in Australia Equifax Experian and Illion you can check these for free.
The first two if you sign up for Wisr and Illion you can check directly
https://amp.abc.net.au/article/everyday/101443606