Credisavvy score and number of application every year.

[lucky777]

Hi Guys,

I currently have around 840 score with credit savvy and have already applied 2 x credit cards early this year, currently have mortgage with bank. I want how many credit cards can I apply every 12 months period before putting impact on my credit score or credit profile. I do want to churn on points but do not want to risk myself's credit profile as I have mortgage at the moment.
Any suggestion is welcome, thank you.

 

[Quattro]

Hi Lucky,

I'll put this disclaimer here - this is my personal experience only.

I have quite a busy credit file. Every 4-5 months there will generally be another enquiry. I have never had a higher credit score.
It all comes down to repayments in my eyes, with more and more credit bodies getting on the system. I've never had a missed payment, with my longest credit account being the PCC through Amex (with 1x $3000 limit Companion CC).

I have a mortgage with one of the Big 4's.

I've always had the feeling that it comes down to your income and monthly expenses. If that all looks fine to them, and you've got no issues with repayment history, I've never been declined. Only once with Amex was I declined, and I had to call them and fight for an explanation, and once I got it, they rectified it was an error in their calculation, and approved me instantly.

I do know that they don't like seeing your credit file activity linked to Balance Transfer Offers. Of course one is fine, but if it's a recurring trend with every enquiry.

My credit score is Mid 700's.

 

[lucky777]

thank you so much, [U]Quattro.[/U]

 

[Quattro]

Not a problem, and I forgot to mention:

I'm with finder.com.au and creditsavvy.com.au

Being with both almost gives me 2 credit scores a month. One is slightly delayed if one updates, so the scores can sometimes change (for better or worse) and gives you a clearer picture more often than being with just one.

My credit score can bounce up 40 or down 50. Never goes anywhere near 700 though, generally gets closer to 800 and back down to mid 700's. Obviously, the fluctuation is only when there is activity, if not it will continue on the upward scale.

 

[knagelli]

Looks like something that I am right thinking about. I am at 640 , have applied for the following cards and never had any default. Have a mortgage with one of the big 4's. Not sure why my score is less , is it something to do with my credit applications. Planning to apply for the next AMEX card for bonus but in a dilemna.

 

[Quattro]

Looks like something that I am right thinking about. I am at 640 , have applied for the following cards and never had any default. Have a mortgage with one of the big 4's. Not sure why my score is less , is it something to do with my credit applications. Planning to apply for the next AMEX card for bonus but in a dilemna.

Obviously quick succession with more than 2 I would say would be detrimental to your credit score. Especially if one of those is declined. From that point you would just have to ride it out until your credit score recovers.

In terms of why it's low, this comes down to the repayment history factor in my mind. A long track record with a credit provider with 100% payments on time will see steady growth. Obviously if you've only just applied for your homeloan, it can take a while for that growth to be anything to write home about.

Being mid 600's, depending how long you've been around that mark, you'll quite possibly see a large spike with good payment history and little activity.

 

[Lynda2475]

In my case Credit Savvy doesn't display my mortgage (Westpac clearly not complying for long held mortgages at this stage) or amex card details, but its score is "Excellent" a lot higher than my Credit Simple "Good" score which dropped recently when Amex started reporting to them (even though zero negative events and not a new account by any means). Credit Simple also doesn't show my mortgage, shame as I'm told a mortgage with no negative events held for a long time positively affects the score.

I agree there is value in having free accounts with all 3 of the major credit reporting agencies - credit savvy (Experian), credit simple (Illion), get credit score (Equifax) so that you can see the variation, as when applying for something new you don't know which agencies the credit provider will check with could just be one, could be all 3. They also seem to update at different times and use different formulas - you can be excellent with one and only good with another.

It is a shame that unlike in the US the CCR doesn't factor in the % of credit you use (monthly balance / credit limit) just the repayment history (and even then only whether or not it is paid on time not minimum vs full payment).

Applying for credit cards frequently seems to have small hits to score provided no other negative events, then recover over time.

at the moment positive credit events (faultless repayment history) don't seem to positively effect credit score as much as they should.

Im sure the bank/credit provider only uses the score as one factor - in the end Salary, Assets and living expenses tend to be the main determinant of success for an application.

Im holding off on my next churn at the moment, as have no immediate need for points and most of the decent sign-on bonuses atm seem to require you to hold the card for 15 months (i.e. renew for at least 3 months) to get the full points, also all only seem to have reduced not waived annual fees.

 

[knagelli]

Thanks @Quattro

In terms of why it's low, this comes down to the repayment history factor in my mind

I guess my thinking was also on the same lines however I don't remember even a single instance me defaulting on any payment. So I will rule point from my score being low.

Obviously if you've only just applied for your homeloan, it can take a while for that growth to be anything to write home about.

This might be the culprit. As I initially dealth with the bank 6-8 months back and again started dealing with a mortgage broker. Was back again talking to back and finally got the mortgage approved in Apr 2019 with 4-5 home loan enquiries. As per my limited knowledge , enquiries do count towards your credit worthiness as to why someone is checking your repayments/capacity so often.

After the mortgage in Apr 2019 , I applied for the Virgin Money Flyer card in June 2019 for the bonus velocity points. I might have answered myself but still not so convincing as to why it's mid 600s.

 

[theblank]

I want how many credit cards can I apply every 12 months period before putting impact on my credit score or credit profile.

keep applying for credit cards until you start getting knocked back, then you know you have applied for too many.

I do want to churn on points but do not want to risk myself's credit profile as I have mortgage at the moment.
Any suggestion is welcome, thank you.

your credit score/profile is rubbish and meaningless. Nobody else cares except Credit Savvy who is nothing more than an advertiser of finance products.

The worst thing that will happen to you is you will get knocked back for unsecured credit if you apply for too many, and who cares about that. It wont affect your mortgage and wont affect your ability to get a new mortgage at some point.

Note: you may have to reduce overall credit card limits if applying for a new mortgage. It doesnt matter whether you have 1 or 10 credit cards, its the total limts that count. But thats not what you are asking anyway

 

[Dr Ralph]

I want how many credit cards can I apply every 12 months period before putting impact on my credit score or credit profile.

Every card you apply for will have an impact.

A better question is how much of an impact can you handle and that all depends on your income and ability to repay.

6 cards a year isn't considered a high number in my view. But your circumstances may be different.

 

[lucky777]

Thanks all. I mayhave been a bit too conservative.

 

[knagelli]

Based on the recent changes to credit reporting , my credit score dropped to 570 , which was 620 last month. I have applied for 2 credit cards and mortgage in the last 6 months.

Unlike last year , any credit application ( loan/card ) is going to hit your file but it will be interesting to see how will on time payments on the same credit cards be rewarded if at all.

 

[Dr Ralph]

Unlike last year , any credit application ( loan/card ) is going to hit your file

Not my experience. In the last 2 months I've applied for 3 new cards and my score has increased.

 

[knagelli]

Not my experience. In the last 2 months I've applied for 3 new cards and my score has increased.

Ah okay .
Probably my reasoning is not correct , however don’t think I have had any defaults but my score took a hit.

 

[Quattro]

Yes, two cards this month and one card last month.
Both letting them decide how high to put the limit, all approved with no impact on score.

 

[get me outta here]

The mortgage may be the culprit. The cc are usually very much smaller amounts.

Based on the recent changes to credit reporting , my credit score dropped to 570 , which was 620 last month. I have applied for 2 credit cards and mortgage in the last 6 months.

Unlike last year , any credit application ( loan/card ) is going to hit your file but it will be interesting to see how will on time payments on the same credit cards be rewarded if at all.