Continuing on my churning journey. How long once you close a credit card does it take to hit your credit report? Having a couple of $17.5k limit cards currently I best close them before applying for the next.
How Long to Hit Credit File When Closing a Credit Card?
ellave on 12/07/2024 - 07:21
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Westpac and Nab currently open. Was hoping to do bank of melb/st george though their current offer expires at end of month but will most likely start again.
For the Qantas points?
yep
I normally dont do more than one cc… good to know you have two.. were both of them min $15k limit.
probably a month or 2
if you do many applications all at once they might get approved before all the enquiries appear on your credit history …
I would love to do this but fear it would backfire somehow…
yep could work, will consider for future
I did 3 in one day last week - virgin, nab and bendigo. It all depends on when their application team get around to your app and does the check. Virgin and Nab were same day but Bendigo took 2 days of active interaction with them. I did not have any open cards at the time of all 3. Bendigo did ask about my Nab app and I told them I do not have any open products but did make an app. I answer them as blandly as I can.
Citibank - NAB - usually an average of 2/3 months before reflecting as closed on my report.
ANZ - same day
Westpac - one monthAny idea about Amex?
Mine is still showing as open even though i closed it nearly 2 months back.No sorry - I have never closed my AMEX account.
AMEX took about 1-2 weeks after closure for me, pretty quick
Thanks, will close my NAB today which at least enables to me to honestly say in my application I dont have that line of credit open
You can always attach the 'closure notice' as a supporting document so if they see it on the credit file, they can see it's been closed.
Westpac is the only application I've seen where they give you an option to do this, which I thought was quite good
It matters not as one can produce thier last credit card statement along with thier application showing the account is closed.
Continuing on my churning journey.
You realise churning decreases your credit score?
Closed accounts stay in your credit history for up to 10 years…
I heard this too can anyone confirm? Is that why the negatives
Read up on it.
It is one of the factors they use for credit scores.
credit scores dont matter in australia unless you default.
Out of interest, how many Qantas points can you earn doing this for say one year? And what is the value of those points?
I churn 5-6 cards per year (for last 3 years). I only do bank rewards points, not frequent flyer points. My reward of choice is Woolies / Coles gift cards. Benefit is about $3k per year. I understand you can get more value from frequent flyer points (maybe 3x), if you can use them effectively.
To answer OP's question: sometimes it can take several months for card closure to appear in your credit file at the credit reporting agencies. If queried related to new bank credit card application, just show them a copy of the closure notice.
If you don't mind me asking, which cards do you churn?