How many credit cards to apply for in a year?

[awkwardpaws]

Don't forget to allow time for any points that are still to sweep over to get into your VA/QF account. Sometimes that means stopping spending 2 months or so before the due date. Also, worth noting to ask when annual fee actually will be charged so that maybe they'll offer next year free and even a few more points to stay on. If not, go ahead and cancel once all the points swept in.

Yep, important note. make sure it gets into your QF/VA/other FF program first before cancelling!

 

[awkwardpaws]

I have an armada of cards, all the black range.

Just curious - do you pay the listed annual price for all your CCs?

 

[mark4217]

Initially yes. At 11 months and upon review of spend habits they have always forgiven/not charged me with the exclusion on Westpac Alt/Black. But i kept their card as the transfer rate to SQ is the best rate if you only spend on AMEX. Their Master card is no good for local spend but 2nd best for international spend behind Citi Prestige. Although they needs to be looked at come March due to new transfer rates etc. Westpac have yet to announce their new rates, but they will!

 

[JohnK]

Depending on the person I would say 3-4 credit card applications in a year is OK.

 

[Dr Ralph]

How does everyone keep track of all these cards and when/how to ditch them? I hang on to mine for way too long. Amex should be dumped every year and then a six month wait before getting another one to claim all those Velocity points?

Easy to keep track of. Just have three at a time. Cancel all three and apply for another three.

 

[Isochronous]

I have a trusty Excel spreadsheet with statement and sign up dates so I know where I'm at with each. Highly recommend this strategy to all.

 

[awkwardpaws]

I have a trusty Excel spreadsheet with statement and sign up dates so I know where I'm at with each. Highly recommend this strategy to all.

+1

Sounds quite meticulous!

 

[exceladdict]

I have a trusty Excel spreadsheet with statement and sign up dates so I know where I'm at with each. Highly recommend this strategy to all.

Think I need to get on to this. Sign up dates not currently listed in my sheet.

 

[banger2]

My last one for the year was a struggle and I had to speak to a supervisor to get to YES. I would say everyone's circumstances vary a lot so there is no one answer. I am doing great with QCUcc despite the 150 pages of info they requested. ANZ Blacks will be less useful after 26/02/2016.
The game to get sign on bonuses is running now.

I think you are 100% correct...everyones circumstances will determine the answer. This is because lending is always based on the risk....the lower the risk, the more forgiving a lender can be towards negative issues about an application for credit

How do you define "damage"?

It's a lot more complicated than just a number. Consider your circumstances (are you buying a house any time soon), what your personal credit history is, etc etc.

There's plenty of threads you can troll about credit cards and their impacts to various scores, etc (and a variety of opinions on whether credit scores matter).

How it impacts your credit score depends on a lot of other factors about your financial situation.

You can get both your veda and experian credit scores free online.

Veda from 'get credit score' and experian from 'credit savy'. I check every time before I do a credit card application.

Currently I wouldn't put too much faith into the credit score from Veda or other agencies....Ill explain below.

No spam in my experience.

My feeling is that knowing one's score helps maximise successful applications

Depending on the person I would say 3-4 credit card applications in a year is OK.

I would tend to agree with you JohnK. As a general rule, if your credit history is good, I would not expect 4 CC applications in 1 year to impact a credit application. The timing of the 4 applications, would however, have an impact.





I've had 15 years of experience in automotive lending - I'm the guy that works between the applicant and the lender, I have direct access to the credit assessor/supervisor (and occasion the lending manager) to discuss applications when required (I deal with major banks like ANZ, Stgeorge and Macquarie). Whilst not exactly the same as all the consumer lending we would think about (ie, personal loans, home loans and credit cards) the principle is the same between all of them, with the exception of credit cards which is similar but not exactly the same.

Understanding our credit system needs more information than has been discussed in the thread to date. But in answering the OP, as some have noted, there isn't one answer fits all. Veda is the primary source of collected personal credit information in Australia, subscribers such as your bank or utility provider generally use Veda for personal credit information about an applicant- outside of information you provide, or that they hold about you. In Australia, we currently have a predominantly negative credit reporting system. This means that your credit file generally only lists negative (bad) information about your credit.

For those who haven't looked at your credit file before, it includes information such as:

You names (s), DOB and drivers license number
You employment history and address history
Any credit applications (inquiries) you have made (where the credit provider has used Veda for that application) - which includes consumer and commercial applications, and applications you guarantee
Any credit defaults or credit related court judgements and bankruptcies / Part 10 agreements
Any accesses to the information (this is not be available to anyone but you)
It can show what your payment history is on a current account, ie paid on time, late by under 29 days etc (this is a new feature, and opposite to the negative reporting system. It is entirely up to the credit provider to supply the data...so currently seems to be very limited)
If a credit provider notifies Veda, it can show whether you have an active account, but in my experience this isn't very common


What it doesn't show (currently) is the status of the finance applications you have made (whether approved, declined, or indeed whether it is an active account)

Personal information generally doesn't leave your credit file, but credit inquiries drop off after 5 years (as do defaults), but bankruptcies/part 10 agreements are 7 years.


So how does this relate to the OP? Very simple.....any finance application you make and its success, will depend on your overall credit profile vs risk to the lender (and this does include the number and type of credit inquiries over a given period of time). The most significant aspect is your credit history.

The Veda credit score, to my knowledge, is not used by any major lender in determining the outcome of your credit application. All the major lenders I deal with have their own internal score...yes they use the information (data) provided by Veda, but ATM under our current credit system, the Veda credit score is not a hugely useful tool for consumers....and I would not pay to get it. However, with ever increasing credit fraud and identity theft, I highly encourage everyone to sign up for their credit alert product. It will tell you within 24hours that an entry has been made on your credit file. This can help you quickly prevent false or fraudulent finance applications from ruining your credit history, or even notify you if a credit provider has erroneously listed a negative event (so you don't find out months/years later when you apply for your first mortgage for example)

I feel I've probably given too much information in my post....but there is so much myth / misinformation in the general public and through the media about our credit system! But of course, this is in no way a complete overview of our credit system in relation to consumer finance activity. It frustrates me no end, that with the amount of credit offered to us / our youth nowadays (even renting a property your credit history may be checked!), that there is no program in schools currently teaching the basics of a persons credit...and there should be because our credit profile/history is so important in our modern lives.

Final word...please don't use payday lenders! You know all those "easy" small cash loans promoted on TV...they are generally toxic to your credit profile!

 

[Dr Ralph]

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

 

[awkwardpaws]

However, with ever increasing credit fraud and identity theft, I highly encourage everyone to sign up for their credit alert product. It will tell you within 24hours that an entry has been made on your credit file. This can help you quickly prevent false or fraudulent finance applications from ruining your credit history, or even notify you if a credit provider has erroneously listed a negative event (so you don't find out months/years later when you apply for your first mortgage for example)

Thanks for the informative post, banger2! Just to check, is this what you are talking about in terms of credit alert product?

 

[banger2]

Thanks for the informative post, banger2! Just to check, is this what you are talking about in terms of credit alert product?

Yes, exactly. Its gone up in price over the years...but it cold head off many issues with incorrect information being added to your file, and certainly ID theft via our credit system. A small price to pay I think. Plus, every year when you renew, you get a copy of your file so you can see whats on it.

I probably should have linked it.....so thanks for adding it for our members.

 

[sausagefingers]

Until I joined this forum I had no credit cards at all.
Since Aug I have signed up for
Velocity Amex
Qantas Premium Alex
Jetstar Plat Mastercard
Bankwest Qantas Plat card
HSBC Qantas card
A low rate St george card with no fee (cancelled already)

I will not be making any applications for next 6 months at least (promised my wife) I have no idea what kind of damage has been done to my credit score, but it will repair itself over the next few months and I don't have any further need for credit over the next 12 months so nothing much to worry about.

 

[Boca68]

I did sign up for Veda Credit history and alerts last year. Whilst it has been helpful, I was not aware at the time of true dynamics of credit scores/history. I was considering not renewing, as its due soon. But, at the end of last year, it probably paid for itself. I had applied for a car loan on a new Audi. Checked through the dealer, wasn't stisfied, so went to my bank (no, not that bank) and inquired. Turned out to much improved offer.

About 2 days later, got 2 alerts in my email. Turns out, my inquiry at the dealership, was considered an acceptance of the offer. So, according to Veda data, I now had 2 personal loans? Errr, nope! Still had not even signed the contracts with my bank. Mostly because the car would not be available for about 6 weeks. Done the deposit and finalised the trade. Just waiting for the car, then we sign the dotted line.

Even with the obvious information available, took me almost 4 weeks to get both removed from my credit profile.

Asfor CC applications, in the last year, I'd applied for two. Both times my score took a big hit! Dropping 150 odd points. Then taking 4 to 5 months to return to previous levels. I'm sure I could have applied and being accepted for many others, but I was shocked by hit it took from one. I read people who have applied for multiple cards on here before. Thats when I decided to do some research.

A little personal research and luckily, a friend that works with a major bank in Credit applications, has been an eye opener. His information destroyed any previous thoughts I'd had. Quite amazing how it all interacts. As some have said, Veda scores are not that important in the overall scheme of things. Only if you have a blackmark, do they become significant.

 

[get me outta here]

Care to share any of the insider tips?

.............. a friend that works with a major bank in Credit applications, has been an eye opener. His information destroyed any previous thoughts I'd had. Quite amazing how it all interacts. As some have said, Veda scores are not that important in the overall scheme of things. Only if you have a blackmark, do they become significant.

 

[get me outta here]

VEDA is open to offers as $80 is too much in my estimation.

Thanks for the informative post, banger2! Just to check, is this what you are talking about in terms of credit alert product?

 

[banger2]

I did sign up for Veda Credit history and alerts last year. Whilst it has been helpful, I was not aware at the time of true dynamics of credit scores/history. I was considering not renewing, as its due soon. But, at the end of last year, it probably paid for itself. I had applied for a car loan on a new Audi. Checked through the dealer, wasn't stisfied, so went to my bank (no, not that bank) and inquired. Turned out to much improved offer.

About 2 days later, got 2 alerts in my email. Turns out, my inquiry at the dealership, was considered an acceptance of the offer. So, according to Veda data, I now had 2 personal loans? Errr, nope! Still had not even signed the contracts with my bank. Mostly because the car would not be available for about 6 weeks. Done the deposit and finalised the trade. Just waiting for the car, then we sign the dotted line.

Even with the obvious information available, took me almost 4 weeks to get both removed from my credit profile.

Asfor CC applications, in the last year, I'd applied for two. Both times my score took a big hit! Dropping 150 odd points. Then taking 4 to 5 months to return to previous levels. I'm sure I could have applied and being accepted for many others, but I was shocked by hit it took from one. I read people who have applied for multiple cards on here before. Thats when I decided to do some research.

A little personal research and luckily, a friend that works with a major bank in Credit applications, has been an eye opener. His information destroyed any previous thoughts I'd had. Quite amazing how it all interacts. As some have said, Veda scores are not that important in the overall scheme of things. Only if you have a blackmark, do they become significant.

Just a small corrector there....the 2 alerts would have been for inquiries on your file. This would not indicate you had 2 loans, only that you applied for 2 loans and the lender(s) have sought information from Veda to support those applications. Signing the loan contract would generally not add another entry to you file (unless there is a dramatic change to the original application, or significant time has past. I've never seen a file with an entry upon loan document signing...excluding after several months since first approval). With a home loan application specifically there may be several checks done during the process, including from the Lender Mortgage Insurance (LMI) provider.

I am assuming you signed no privacy consent for either(?)...as this would generally be the only way in this instance to get the entries removed (claiming the access to your credit file was without a privacy consent...so was not authorised). It is very difficult, with the onus being almost entirely on the individual, to have an entry removed from your credit file. You did the right thing for your own credit standing to have them removed if they were not correct. Knowing about it early allows less damage to be done.

I've seen some horrendous credit limits and number of cards from some of my customers. Generally, for a strong applicant this is not a problem, but it will impact how much you can borrow. Normally, financiers/banks consider the credit limit as the issue....not the balance owing.

Ash

 

[Boca68]

Just a small corrector there....the 2 alerts would have been for inquiries on your file. This would not indicate you had 2 loans, only that you applied for 2 loans and the lender(s) have sought information from Veda to support those applications. Signing the loan contract would generally not add another entry to you file (unless there is a dramatic change to the original application, or significant time has past. I've never seen a file with an entry upon loan document signing...excluding after several months since first approval). With a home loan application specifically there may be several checks done during the process, including from the Lender Mortgage Insurance (LMI) provider.

I am assuming you signed no privacy consent for either(?)...as this would generally be the only way in this instance to get the entries removed (claiming the access to your credit file was without a privacy consent...so was not authorised). It is very difficult, with the onus being almost entirely on the individual, to have an entry removed from your credit file. You did the right thing for your own credit standing to have them removed if they were not correct. Knowing about it early allows less damage to be done.

I've seen some horrendous credit limits and number of cards from some of my customers. Generally, for a strong applicant this is not a problem, but it will impact how much you can borrow. Normally, financiers/banks consider the credit limit as the issue....not the balance owing.

Ash

You certainly are correct, but I did manage to get both removed.

Mostly for the reason that it did not specify either inquiry or acceptance. My friend who works for a bank in credit suggested I get them removed as it would be construed as having 2 active loans. When the credit information available is expanded, i.e.- limits, balances etc! , then perhaps it might be different.

EIther way, I was satisfied in the end. And the Audi is brilliant, btw.

 

[Major]

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

 

[exceladdict]

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

Would be very interested in feedback on this topic from some of the members in finance / credit/