Not Charged for Missed Credit Card Payment, but Still Rejected

LGyr on 14/02/2025 - 10:22

I've been doing some light churning for the past few years, averaging just over 3 new credit cards per year. Until now I have paid off the entire balance before the due date on all my cards, and have had at most one other card open when I apply for a new one. For that entire time I have not had a single rejected application. I should also add that I don't have any other debts or lines of credit except Afterpay, which doesn't report to credit agencies unless you miss payments.

A couple weeks ago I missed a payment on my ANZ card by one day. When I received the reminder text from them that the payment was overdue I immediately BPayed money into the account to put it into credit. The transfer was dated on the statement as being settled on that day. A week later my statement was issued, I expected to see late fees and interest charges, but there was nothing. I checked my credit report from both Experian and Equifax; there were no reported late payments. At this point it seemed like I was in the clear, so I contacted ANZ to close the card. This was the only card I have had active for the past 5 months.

Now about a week later I made an application with Westpac. I expected them to be one of the most likely to approve me, and one of the easiest to apply for, as my pay goes directly into an account with them. However, the application was auto-rejected before I was asked to submit documents.

Has anyone had a late payment that they haven't been charged for?

Is it possible that I've been secretly flagged as not creditworthy? Should I retire from churning after this?

Financial Credit Card

Comments

  • Hybroid on 14/02/2025 - 10:26
    +6

    How much have you realistically benefitted from all this churning effort and stressing?

    • Gyr on 14/02/2025 - 10:29

      It's one of the highest ROI for time things you can do, and not much stress so long as you don't hold multiple cards at once. The most annoying part is that you sometimes have to speak to ANZ's call center.

      • jv on 14/02/2025 - 10:45
        +1

        It's one of the highest ROI for time things you can do

        You just answered your own question…..

        • HeWhoKnows on 15/02/2025 - 07:50
          -1

          The banks are onto OP !

      • SlickMick on 15/02/2025 - 13:34

        How so? I find credit card applications a pain, I've just gone through the grief for the first time in decades, and hope to never need to again.
        It would have to be substantial $$$ for me to want to go through that every few months.

        What's your credit score? I'd have thought it would be pretty low with so many credit applications??

  • Duckie2hh on 14/02/2025 - 10:26
    +6

    Cool story.

  • boomramada on 14/02/2025 - 10:27
    +1

    Is it possible that I've been secretly flagged as not creditworthy? Should I retire from churning after this?

    I feel like you are the expert here, why stopping it now? While you doing all this, have you montor your credit score?

    • Gyr on 14/02/2025 - 10:31

      I've checked my credit report and has always been excellent, even after the missed payment, but the rejection criteria is sometimes opaque, and I've never heard of a missed payment not being charged like this before.

      • boomramada on 14/02/2025 - 10:34

        Well apply again with a different provider and report back to us, if it is auto-rejected, then we both know the answer :)

        I'm not sure if this apply to you https://www.unloan.com.au/learn/how-missed-and-late-payments…

        • Gyr on 14/02/2025 - 10:47

          Thanks, this was more in depth than other information I've seen. I might try another application in a few weeks and retire if I get rejected again.

      • bmxr on 14/02/2025 - 11:53
        +1

        Missed/late payment charges are completely at the discretion of the lender. I have them waived pretty regularly, I miss multiple payments per year until they call and remind me.

  • askbargain on 14/02/2025 - 10:40
    +14

    Doubt it’s your late payment causing rejection

    • HardQuiz on 14/02/2025 - 19:51

      This.

      OP, are you sure you didn’t make a typo in your Westpac application that may caused to be auto-rejected?

    • YesPleaseThankYou on 15/02/2025 - 15:08

      No doubt, it's 100% unrelated.

  • Dollar General on 14/02/2025 - 10:50
    +3

    Maybe they feel you have too many credit enquires on your file and a credit junkie

    • Gyr on 14/02/2025 - 10:53

      A lot of people go much harder than me and don't get rejected, but maybe Westpac has stricter rules.

      • askbargain on 14/02/2025 - 11:17
        -1

        Did you apply for their black or plat card?

        • Gyr on 14/02/2025 - 11:27
          +1

          The platinum altitude with minimum limit. I only had a black card once, from ANZ, and was accepted.

          • Pelicannn on 14/02/2025 - 14:57

            @Gyr: What is your income? What are your rough expenses?

      • USER DC on 14/02/2025 - 12:27

        Westpac has been easiest one for me by far, (same with like 1 person in house other people i couldn't convince on getting them on board of CC).

        quickest approval, quickest card delivery (online instantly almost to google pay)

        and they had good rewards points to $$ conversion too.

        Anyway I never really had like 3 applications per year. I keep it a max 2 per year, ideally 1 card should last 7 months ish IMO. especially this westpac ones I think you really gotta keep it for like 12.5 months (YES I MEAN 12.5 NOT 12, not 13 but somewhere in between 12 and 13) for best returns now.

        • Gyr on 14/02/2025 - 12:34
          +1

          Why 12.5? Won't that get you hit with the annual fee and make your ineligibility window longer?

          • USER DC on 14/02/2025 - 12:42
            +1

            @Gyr: You dont get hit annual fee straight after 12 months, it takes some time (or at least it did not in my case)

            I think they put on file on 13th month

            https://www.westpac.com.au/faq/annual-card-fee-date/

            that is exact wording i think
            "If you were approved for a Westpac credit card on or after the 20th of August 2022, the annual Card Fee date is the anniversary of the first statement date following the activation of your card. The statement date is also referred to as the ‘Statement To’ date on your credit card statement."

        • VQLD on 21/02/2025 - 12:02

          the whole game is about bonus points. the more you churn- the more you get.

  • Emphasise on 14/02/2025 - 11:22

    Done 7 cards in the past 1.5 years. Only been rejected once by Virgin Money.

  • BewareOfThe Dog on 15/02/2025 - 01:21

    Bpay isnt instant. Takes a day or 2.

    • Ade99 on 15/02/2025 - 10:28
      -1

      No it doesn't

      • BewareOfThe Dog on 15/02/2025 - 10:51

        Might be quicker these days, but I haven't used it for years.

  • ColtNoir on 15/02/2025 - 08:15

    Every credit provider will have their own reasons including risk profiles etc. Some will be more risk averse, Westpac is going through a bit of structural change internally so may be trimming costs by reducing thresholds etc.

  • 2esc on 15/02/2025 - 09:33

    I currently dont credit card churn.

    Those that travel who frequently travel credit card churning can yield significant savings but if your not a traveller?

    For me to consider churning is to get actual dollars in my bank account.

    In actual dollars in the pocket in a year what is the best someones has received thats not connected to travelling, accomodation or spending more money in excess of day to day spend to take advantage of rewards.

    If the only money your spending is your normal day to day use on a credit card ive heard potentially the benefits could be between $500 and $2000 what returns per year in cash have people found.

  • YesPleaseThankYou on 15/02/2025 - 15:08

    For someone who has done 'some light churning for the past few years', you sure know very little about credit cards and credit reporting in Australia. Sad.

    Your one late payment has no effect on the decline you received. See https://en.wikipedia.org/wiki/Recency_bias

  • Lexie123 on 17/02/2025 - 16:59

    It's not your credit score,banks can see your prior CC history,too many cards and they will reject you.
    Doesn't matter if you a zillionaire,there doing it to everybody.The days of churning for points are just about over,I hope you got some business class flights out of it.

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