Credit Enquiries - How Many Is Too Many?

toomuchdogfur on 12/12/2021 - 10:28
Last edited 12/12/2021 - 10:30

Lots of people are perennial credit card churners, and it's not hard to see why - sign up offers with points equating to several hundred dollars (sometimes even scraping the low thousands) seem to be a regular occurence.

However after just five credit enquiries, Credit Savvy is warning me that I should limit the number of credit enquiries I have. My score is still >750 so I'm not concerned, but a regular churner would have a dozen or more enquiries - given a five year retention period:

  • AMEX Explorer has an 18 month minimum period between churns = 3 churn cycles
  • ANZ Black has 12 months = at least 4 churn cycles

Plus probably a few other strong bonus sign-up cards I missed. Plus any other applications (phone, utilities, loans) that might incur credit checks.

As far as I know, the credit score won't have an earth-shattering effect until one applies for a loan (home, car, etc). So my question is how many enquiries do you think are too many? (i.e. enough to cause you serious issues in getting a loan, even if your financials are strong)

Especially interested in hearing anecdotes from CC churners. Did all the enquiries come to bite you later on?

Poll Options

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    What's a credit score?
Financial

Comments

  • deme on 12/12/2021 - 10:43
    +8

    Credit Score doesn't matter it's a tool to market shit at stupid people

    • HardQuiz on 12/12/2021 - 11:04

      Can you tell me the “product” being marketed?

      And how does a score (or score range) affect the purchase decision of a person?

    • LemonShapedRock on 12/12/2021 - 21:26
      +2

      Correct, the "score" by Veda/Equifax/CreditSavy etc is a marketing gimmick.

      Banks do 100% look through your credit enquiry and default history on your credit report.

      Most banks use that information to spit out their own credit worthiness score.

  • Keplaffintech on 12/12/2021 - 10:48
    +1

    the credit score won't have an earth-shattering effect until one applies for a loan

    It will have no effect when you apply for a loan.

    enough to cause you serious issues in getting a loan, even if your financials are strong

    If your financials are strong you will have no issue.

  • prisonmike on 12/12/2021 - 10:58

    If you think it’s too many then it’s too many and time for some self reflection to see where you stand

  • p1 ama on 12/12/2021 - 11:12
    +2

    As far as I know, the credit score won't have an earth-shattering effect until one applies for a loan (home, car, etc).

    You've got it the wrong way around - the "larger" the loan, the less that your credit score matters because other factors are analysed and considered. If you're talking about a home loan, for instance, your income, job stability…etc. are all much more important.

    Credit scores are mostly used for "quick and dirty" loans, e.g. credit cards, personal loans…etc.

    • jimbobaus on 13/12/2021 - 13:41

      Credit scores are not used at all.
      It’s literally a made up number.

  • toomuchdogfur on 13/12/2021 - 10:12

    Thanks all for the responses!

    So essentially, if I don't care for unsecured personal loans, the only trouble I might run into by applying for more credit cards is… trouble applying for more credit cards.

    Time to go signup bonus hunting!

    • Keplaffintech on 13/12/2021 - 16:50
      +1

      as you asked for anecdotes; after around 10 credit cards in ~2 years, I still have no trouble or questions when applying for a new card.

      As long as your salary is sufficient to service the total limit of all your cards you will be approved.

  • jimbobaus on 13/12/2021 - 13:40
    +1

    Credit Savvy is warning me that I should limit the number of credit enquiries I have. My score is still >750

    Lucky your credit score has zero impact on your ability to obtain credit. It’s a made up number used by the reporting agencies to get you to check your score frequently and to allow them to onsell your data to third parties that will in turn offer you credit. When you apply the agencies get a kick back.

    No matter what anyone might think or say the score has no impact on your getting approved for anything. Lenders will always have their own criteria that you need to meet. This made up number is not one of them.

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