How many credit cards to apply for in a year?

[get me outta here]

Couldn't you prove some sort of super type income, sorry, don't mean to be personal.

I have only 1 credit card but recently decided to apply for a 2nd one with heaps of FF points on offer. It seems that as I am retired and therefore have no regular income that I am a risk. They declined my application in spite of having substantial assets and no debt, apart from my current CC.

You are lucky if you have a job and can apply for several CC's

 

[lovetravellingoz]

I'm on my 4th so far for 2016. Going for a minimum of 12 applications in 2016.

While I have no problem with numerous CC applications I would never set a yearly target. I just assess each opportunity as it arrises and if it is worth it I apply.

Currently we are enjoying aperiod of numerous and attractive options. However there are also a lot of poor or marginal value ones that are to me not worth the credit file hit, or lost opportinity cost that they may have in locking me out of a future higher value offer.

Sign on bonii come and go as they move in and out of favour. Great for point running now, but they may go out of flavour by the provider at anytime too.

So some years I will have quite a number of applications. Others perhaps almost none.

I do ensure that:
* one of my CC's has a good TI policy with FF point redemption coverage and easy acitivations (ie only needing to spend minimal $$ rather than the whole trip)
* that I am maximising my point earn on Amex and VISA/MC

While I will collect good QFF offers I favour bonii/earn offers that can go to Krisflyer at a good rate.

Warehousing of points is an issue for me too. The Citibank devaluation is causing me this month to move the points of my wife and I to KF. For a number of years now I have maintained at least one direct Amex as my MR point bank has been too large to want to move to a FF program (at KF the clock would start clicking). That is diminishing now with the lack of point promos by Amex (they have mainly moved to cash-back promos).

 

[sanne]

I have only 1 credit card but recently decided to apply for a 2nd one with heaps of FF points on offer. It seems that as I am retired and therefore have no regular income that I am a risk. They declined my application in spite of having substantial assets and no debt, apart from my current CC.

You are lucky if you have a job and can apply for several CC's

My husband and I have had the same problem. Retired, sizeable assets, no debt, no regular income. If you have a SMSF you can have whatever income you need at the time. Answering the questions in the CC applications just don't fit for our situation. I also would be very interested in some insight into why we get knocked back.

 

[Major]

My husband and I have had the same problem. Retired, sizeable assets, no debt, no regular income. If you have a SMSF you can have whatever income you need at the time. Answering the questions in the CC applications just don't fit for our situation. I also would be very interested in some insight into why we get knocked back.

We also have a SMSF and simply withdraw funds as you need them. There is no regular pattern for income

 

[exceladdict]

We also have a SMSF and simply withdraw funds as you need them. There is no regular pattern for income

Could be worth going in to a bank and discussing with someone face to face. You never know

 

[banger2]

We also have a SMSF and simply withdraw funds as you need them. There is no regular pattern for income

Could be worth going in to a bank and discussing with someone face to face. You never know

I would have a guess that the NCCP (National Consumer Credit Protection Act) would be the issue in this case. Generally, it is very very difficult to get credit from a lender where there is no income from a regular source, such as employment or pension. For certain types of loans there are exceptions (limited as they are), but I don't imagine any lenders that have those types of loans deal with credit cards. One of the purposes of the Act is to try ensure lenders do not lend to those consumers that would be put into financial hardship due to the commitment. Simply having a large sum of money in the bank, or similar investment (even where it is fully accessible) would likely not allow the lending under NCCP. This issue is a growing one in my work...credit regulation is getting much tougher as the years pass.

A few years back, I applied for one of those interest free things for a fridge. I was really a credit card account. I got knocked back. It took me alot of badgering the lender directly to get the answer as to why, as I had good previous history on loans and CC's, and had good ability to service the debt. However, as more than 50% of my income was commission based, I failed their ability to service guidelines. Because negotiating (sometimes arguing ) with credit assessors is part of my job...I was able to negotiate my way into an approval. I would suspect the average person with no knowledge of credit directly would not have had the same result.....even more so now with the stricter credit guidelines.

IMO, going and talking to a face in the bank, I would think would be a fruitless move...even though it doesn't hurt to ask. Talking to a couple of front-line banking staff, they generally do not connect directly to the credit assessors...and nor would they have a knowledge of the reason for the answer (declines)...or indeed the knowledge of NCCP.

My experience in lending suggests one other simple fact. For individuals, lending (and answers to applications for lending) is a personal, and sometimes emotional thing. For a lender, despite government regulation to assist consumers - rightly or wrongly intentioned), it is all risk and business...there is no personal / emotional involvement.

 

[cove]

I had a bit of a laugh when I received a rejection letter from a division of Which Bank after I had received the new credit card. Apparently it was an automatic letter and their computer issued it. A discussion with a supervisor got me over the line a few minutes after being told they did not want to give me their card. The supervisor was surprised that I had been a bank customer of theirs for over 45 years and that their computer could do the rejection.
QCU was also troubled by 3 months of transactions on so many credit cards and that revealed all the ATO payments in that period. I think the assessor was shocked that I was holding the Federal Budget together single handed.

Once you have retired credit card applications become tricky as some of my retired friends have discovered.

 

[ruben38]

Those who apply and cancel cards on a regular basis, I'm assuming you don't have a lot of regular automatic payments going on the cards? We replaced cards mid-last year and I'm still chasing up the automatic payments that I'd forgotten that went on the card at various times! I wouldn't want to have to do that again several times a year!

 

[get me outta here]

I have 2 base cards that I keep all the time due to this very issue. I use the BankWest World card that's 1 point per 1$ For most periodic payments.

A

Those who apply and cancel cards on a regular basis, I'm assuming you don't have a lot of regular automatic payments going on the cards? We replaced cards mid-last year and I'm still chasing up the automatic payments that I'd forgotten that went on the card at various times! I wouldn't want to have to do that again several times a year!

 

[lovetravellingoz]

Those who apply and cancel cards on a regular basis, I'm assuming you don't have a lot of regular automatic payments going on the cards? We replaced cards mid-last year and I'm still chasing up the automatic payments that I'd forgotten that went on the card at various times! I wouldn't want to have to do that again several times a year!

Well for many bills that do not take Amex but do take Paypal it has meant shifting back to paying when they are due to secure the much higher points earn available.

For the automatic payments they are on one's highest point earning card and for VSA fora while that had been my free for life Signature card. So no change required. The upcoming Citibank devaluation of the transfer rate to Krisflyer may seea number canged.

 

[Dr Ralph]

Those who apply and cancel cards on a regular basis, I'm assuming you don't have a lot of regular automatic payments going on the cards? We replaced cards mid-last year and I'm still chasing up the automatic payments that I'd forgotten that went on the card at various times! I wouldn't want to have to do that again several times a year!

Keep one with a small limit for this purpose. Churn the rest.

 

[kko]

Nothing a simple spreadsheet couldn't fix. In majority of cases you can update the details yourself online. I think I only have one where the provider requires a phone call (or worse still - a fax!) and so I just decided not to bother and have my debit account debited instead.

 

[flapper]

As it's the new year I was wondering if anyone is prepared to share how many credit cards they got in 2017 and how many they intend to apply for in 2018.
I got 6 last year and with minimum spend requirements try to spread them out over the year.

 

[benjy]

Good information in this thread, thanks for rising it from the dead, flapper

Prior to last year I had no credit and was really testing the waters with credit (card) applications accumulating points. In hindsight was pretty silly but I'm not applying for home loan anytime soon so attitude was "why not".

Last year I was approved for 5 credit cards in the first half of the year and 1 personal loan in Dec 2016, then went a bit stupid seeking more points. Haven't been approved for any new cards since June. In terms of Veda score I only have history from May, where it was 578 and currently sitting at 517. Some of the most recent applications haven't hit Experian and/or D&B.

I need to sit out for a while the score recovers and some credit card applications drop off from 6/12 months since application, and also one from 2013 drops off completely. I'm planning on moving mid 2018 so I might considering apply for a CC just before I move.

 

[exceladdict]

Just the one for me in 2017, and only have one open between Mrs Excel and I at the moment. Getting ready for when my ANZ year resets and playing the waiting game with Amex while trying to decide whether to exit the QFF points bandwagon and jump onto Amex MR.

 

[woodyren]

I applied for 12 cards last year.

I was approved for 10 including 4 NAB cards.

I was knocked back for a Virgin Velocity and an ANZ rewards Black. The later just a month or so ago and they told me clearly, when I asked for a reason why, that I had too many recent credit enquiries on my credit file. I had applied for and been approved for three cards that month so I was probably pushing my luck. They also told me to reapply in three months time.

My 18 months probation for Amex finishes next week so the current 100K Velocity points offer is on the cards.