Declined for Credit Cards & Low Vedascore - thanks ozbargain!!!

dw121212 on 13/03/2015 - 15:02

Thanks to all these free points and balance transfer offers; I've applied for over a dozen cards in 12 months. I also have a house and not planning to re-mortgage so I was not too fussed about any knock on issues on my credit rating.

I've been approved for most cards, apart from NAB 40,000 offer and AMEX Plat Edge. It's super frustrating mainly because my wife is earning 1/2 my wage and was approved for both with no issues at all.

My Veda score is now low - maybe 300 ish. i have no defaults. only 20 applications/enquiries for credit in 12 months though - so yeah i guess at some point all these application have a downside. However the upside had been 200,000+ points in one form or another.

Financial

Comments

  • GaelicAU on 13/03/2015 - 15:05

    How does the credit card points system work? Tried a Google search but couldnt find anything.

    • dw121212 on 13/03/2015 - 15:25

      It's a black box to me, would love to know the details.

  • tanoshiiki on 13/03/2015 - 15:05

    A sarcastic or appreciative thanks? Or both?

  • bonezAU on 13/03/2015 - 15:07
    +4

    Wait at least 6 months before applying for any more credit - of any form. The same thing happened to me when I was 18 (young and stupid), I was applying for credit cards, mobile phone contracts, all sorts of crap and I ended up with too many enquiries on my credit file which resulted in me being denied credit despite never having a default and always paying my bills on time.

    All the banks told me to not apply for a single form of credit for at least 6 months and my file would head back towards normal. I did this and it worked. I know the system has changed now with scores but I'm pretty certain that having a large number of enquiries on your file still looks bad to lenders.

    • dw121212 on 13/03/2015 - 15:27

      Yes a large number does look bad to lenders, especially new lenders. However existing relationships seem to count for something - CBA ANZ don't seem to care in my case

      • LemonShapedRock on 18/03/2017 - 16:16
        +1

        @dw121212

        Would be interesting to know whether this advice turned out be true.

        What is your score now?

        (I'm assuming it is true, just interested to see how much of an impact it had on your score)

  • c64 on 13/03/2015 - 15:38
    +4

    I've applied for over a dozen cards in 12 months.

    so what did you expect was going to happen? endless credit?

    • dw121212 on 13/03/2015 - 15:54
      +8

      no i expected an endless supply or frequent flyer points

  • Paul Atreides on 13/03/2015 - 15:43

    im looking at it from a bragging perspective from your end op. quite the achievement lowering your credit score to such a low amount. as you said, no need to remortgage since you already have one, and i hope you werent planning on taking any extra debt.

    now youve got a ton of points, using your strong credit score. at least you've utilized it rather than just letting a high score sit idly

  • donbot on 13/03/2015 - 17:32

    what does the 200000 points get you?

    • Malarkey on 13/03/2015 - 17:43
      +9

      A nice set of steak knives

  • [Deactivated] on 13/03/2015 - 17:58
    +1

    I can't find a specific Australian one, but plenty of images of the similar-mix (but not identical) U.S. FICO pie-chart on Google.

    I believe that in the Australian context, and maybe including both so-called 'hard' and 'soft' (the latter when by customer implying possible fear), just the number of credit-score 'inquiries' past a certain number over a given period - and irrespective indeed of whether made by you, or by providers - currently accounts for as much as (maybe) 15% of the meat (as opposed to the apple) pie.

    Also, if you think that certain institutions aren't aware of - and some at this point, very wary of - those customers who are clearly just in the business of taking on new cards for reason of initial points - you're a fool. Bluntly.

    Also, if you don't believe that certain providers will intentionally skew the data reported in order to deal with those customers - and potentially with some long-term consequence in relation to internal recording - you are also a fool. Again, bluntly.

    OP, maybe learn a lesson from the card refusal that you've just experienced.
    There are limits.

  • whodidthat on 13/03/2015 - 18:02

    Too many enquiries combined with knockbacks on a credit file hammers your credit score.

  • Arie on 13/03/2015 - 18:23
    +2

    I had the same issue and found this site https://www.creditsavvy.com.au
    It is a free service. VEDA is also free but the report won't be extensive, I think. They tried upselling to me to get the extensive report which include credit score by paying $70 with 1 day turn around time rather than 1 week.

  • Gotchas on 13/03/2015 - 22:43

    The only thing you are doing wrong is you haven't got your wife onto the gravy train.

    • Baysew on 14/03/2015 - 09:14
      +1

      No, he has that covered as well-

      It's super frustrating mainly because my wife is earning 1/2 my wage and was approved for both with no issues at all.

  • djhacker on 16/03/2015 - 20:48

    I never knew there was a credit score system, I always thought it was a YES or NO situation.

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