Applying for Additional Credit Cards - Feedback Req

golfer dad on 24/12/2016 - 12:33
Last edited 25/12/2016 - 13:41 by 1 other user

Merry Xmas to all,

Just got approval from ME Bank to re-finance my existing home loan at lower rate so now chasing some of the credit cards with sign-up bonuses that ends on 31st Dec or Jan.

We currently have the WBC Altitude Blk A/E & M/C (no annual fee due to curr home loan package), still in 1st year of ANZ Rewards Blk card (no annual fee and 75,000 reward points), Coles Sourcecard (no annual fee) and a 28 Degree card for o/s trip.

We spend a lot on our cards as we pay everything possible on CC and we have 3 kids but we always paid off the a/c in full every month. We rarely fly domestically so free domestic flights/lounge passes not of high value to us but we do have a family trip (5 of us) internationally every 12 - 18 mths. We're looking at the CBA with $250 cashback, A/E Explorer and NAB Premium with 75,000 QFF/Velocity points.

Both my wife & I will meet the income criteria, min spend within qualifying period is not an issue, have lot of equity in our home and have a good credit score so do I need to cancel 1 or 2 or my existing cards before applying for these 3 new cards or unnecessary given I have read in one of the polls that other ozbarginers have 10+ cards? Should I apply for all 3 cards at the same time to maximize successful application. Also, thinking of both my wife and I applying separately to maximize points earned and the points benefits is worth more than the paying 2 lots of annual fees.

Any feedback welcomed. Thanks in advance.

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  hashtagbargain on 24/12/2016 - 13:09

  As far as I know, cancelling a credit card will not show up on your Credit history. In my experience, as far as a credit card application is concerned - closing an existing card is the same as forgetting to list the existing card.

  They have no way of knowing if the existing card is active or not. Just make sure you leave about 3-6 months in between subsequent CC applications (depending on your/bank's risk appetite).

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  golfer dad on 24/12/2016 - 16:53

  Thanks for the feedback

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  Skramit on 24/12/2016 - 20:15

  As above cancelling cards does not impact credit score.

  But when you apply for a card most forms ask you to list or total up existing credit limits or outstanding cc debt so that's how they find out if you have $100k of ccs already.

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  Priceless Class on 24/12/2016 - 20:21

  I think your total available credit limit of your cards is what matters more to the banks than simply how many cards you have.
  Ie. You might have 4 cards currently, but what are the credit limits on them?

  When you apply for a new credit card application they are assessing your serviceability on what your existing total credit limit is, hence why they usually ask what other credit cards/limits you have. As responsible lenders they generally assume the worst - that you could be maxed out on those cards and only making minimum repayments.

  In theory they will offer you a limit of whatever your income can repay, minus the repayment of any existing cards.

  So my suggestion would be to look at your existing cards and rather than canceling a card, look at getting the limit reduced if you don't utilise it. Then your new lender is more likely to offer you a higher amount (if that's what you're after)

  Bear in mind that each lender seems to have a different formula. My last few application amounts have varied from $4000, then $3000, then to $15000, all with the same application data…

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  golfer dad on 24/12/2016 - 22:02

  Thanks guys. Yes, I'm wary of my total credit limit hence why I suggested cancelling one of the black cards as their min limit is $15k. I have already reduced the limit of the other 2 non-black cards. My thought behind applying for all 3 cards at the same time is that I don’t need to include the credit limit of each of the new cards. We have a good buffer between income to expenses so we’ll see what happens.