Credit Score Negatively Affected by Multiple Credit Card Applications (Solved)

ViperAMD on 02/05/2018 - 14:37
Last edited 02/05/2018 - 15:40 by 2 other users

Hi All,

In the past 18 months i've applied for 3 new credit cards to take advantage of frequent flyer sign up offers. I've had a couple of credit cards prior to this for the last 10 years; have always paid off on time and never owed more than $1,000 for more than a few days.

Despite this my credit score has fallen from 770 to 657.

Few questions:
- Is this likely to affect future borrowing power? e.g home loan?
- How can I improve this score?
- Will closing cards help or worsen my score?

EDIT: After more research i'd like to delete this thread.

Basically credit scores from sites like creditsavvy are bullshit and no bank / lending institute is going to use that data alone. Still best practice to minimize applications and not apply for multiple in a short time frame.

• 

  dcep on 02/05/2018 - 14:40

  • No
  • Don't bother
  • Don't matter
• 

  sw0rdy on 02/05/2018 - 14:45

  +1

  1. It can, just be careful and stop applying for credit for a while. Remember that each credit enquiry stays on your credit report for 5 years.
  2. Continue to pay your bills on time.
  3. Won't have much of an affect until comprehensive credit reporting (CCR) comes into play.

  There is heaps of info regarding all this on ozb or credit score sites like getcreditscore etc.

• 

  markathome on 02/05/2018 - 14:51

  -1

  Is this likely to affect future borrowing power? e.g home loan?

  It can.

  How can I improve this score?

  Stop applying for credit cards. Pay bills on time.

  Will closing cards help or worsen my score?

  No effect unless your provider is participating in comprehensive credit reporting.

• 

  [Deactivated] on 02/05/2018 - 14:55

  -1

  Credit Score negatively affected by multiple credit card applications

  FTFY.

• 

  ronnknee on 02/05/2018 - 14:59

  • Is this likely to affect future borrowing power? e.g home loan?

  At the time of home loan application, your total credit limit and the length of time since your last application will have an effect.

  • How can I improve this score?

  Don't apply for new credit cards or loans.

  • Will closing cards help or worsen my score?

  Nil effect, so might as well keep them until you apply for home loan.

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  [Deactivated] on 02/05/2018 - 15:07

  Credit stores are an okay quick snapshot view of your credit worthiness.

  It is not something that lenders really take into consideration when extending you credit.
  They really look more into your previous history, do you have a history of defaults, late payments? What is your ability to pay off the loan/credit? etc. The credit score doesn't tell them any of this, thus they don't really use it.

  Having said that, if your credit score is 50… Then there is probably something really wrong.
  But just because you have a score of 820, doesn't mean they'll just give you a credit card.

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  R-Man on 02/05/2018 - 15:13

  Basically credit scores from sites like creditsavvy are bullshit and no bank / lending institute is going to use that data alone. Still best practice to minimize applications and not apply for multiple in a short time frame.

  I click these discussions to post exactly this! Happy to see ya beat me to it :)

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  Moderatorscrimshaw on 02/05/2018 - 15:16

  Looks like OP has own answer after doing research, so I guess the issue is solved. Thread closed as requested.