Credit Score Has Taken a Hammering from Churn?

ednamekin on 25/07/2016 - 15:52

Checked my credit score through the free Credit Savvy service (Experian) and got a stunningly low 246! Veda's at 509. Checked the dashboard and it had 13 credit enquiries listed from 2011 onwards, but no other defaults etc.

Known factors:
-Last credit card payment was 2 days late because I plain forgot. No other late payments in past 5 years
-Moved back home with the folks 2 months ago after a year in an apartment (address change has an impact?)
-Churned 3 credit cards, closed two of them last week.

Reason for shock:
-All CC balances paid in full every month
-home loan paid on time every month

Just shocked at the super low score, was expecting that I'd be at maybe 600+.

A part of me is hating that I may have to cough up $80 to get the full credit report, and then potentially use it to correct errors. But what other options are there? Wait it out for a year? Might look at a home loan in the next year.

Financial

Comments

  • c64 on 25/07/2016 - 16:23

    you should be able to a free credit report from both of them

    • ednamekin on 25/07/2016 - 22:07

      Shall do, is this separate to the dashboard and score summary you get from sites such as CreditSavvy or CheckYourCredit?

  • tomsco on 25/07/2016 - 16:28
    +1

    As mtg said, get the free report.

    Lenders won't be looking at your score, regardless.

    They would see the enquiries.

    In regards to your late payment, if it was only 2 days late, I very much doubt they would default you on that.

  • Bab on 25/07/2016 - 16:47
    +1

    Every time, a credit application is made regardless approved or not, it leaves an impression in our credit history file for 5 years and all checks affect our credit score. I used Veda for a year and noticed how the graph score fluctuated with each check and how it improved monthly. A free credit report will give you checks made but won't give you a score.

  • chumlee on 25/07/2016 - 16:52

    You have 11 days I think it is to pay your bills past due date otherwise it drops your score

  • fruit on 25/07/2016 - 17:05
    +1

    A part of me is hating that I may have to cough up $80 to get the full credit report

    No you don't. By law you are allowed to request a free copy of your credit report.

    You have the right to find out what's in your credit report and correct any wrong information.

    https://www.moneysmart.gov.au/borrowing-and-credit/borrowing…

    If a company is making you pay to check or fix errors in your report contact http://financialrights.org.au/

  • [Deactivated] on 25/07/2016 - 18:06

    I think there was another forum discussing the effects of churning credit cards and the financial score implications.

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