Numerous credit card applications on credit file- detrimental?

[ps0104]

Hi

Over the past few years I have applied for a number of credit cards to take advantage of various promotions offering bonus frequent flyer points for new applications etc. I have always paid the balances in full and have never paid a cent of interest and cancelled the cards after 6 months or so once all promotional benefits had been received. I have done this 4-5 times over a 2-3year period. I have always assumed that provided there are no defaults or other issues, this would have no bearing on a credit rating.

I recently applied for a card and my application was rejected, even though my income is well above the stipulated minimum, I have no defaults or any other blemishes on my credit file and I currently only have one other credit card with a modest limit.

I tried to get an explanation from the credit card provider with no luck. A friend suggested that it might have something to do with the number of credit applications on my file? Does anyone know if this could be correct?

If so, will this have any impact on my ability to get a loan for a PPOR in 6 months or so?

Thanks in advance

 

[Rolf Latham]

Hi PS

Not helpful as any enquiry does affect ur credit score

6 mths is a useful gap, still choose ur lender wisely that doesnt use the blackbow score as a final decision.

Much will depend on the LVR for the PPOR loan , at 80 u will likely be ok, at 90 to 95 it wont be easy

ta
rolf

 

[wylie]

My son had this same situation when he went to get a loan for a unit he settled yesterday. He had applied, and been approved, for three different cards, for different reasons (two of them fairly recently in response to "special offers"). One was great for overseas use, one he wanted the free flight. He doesn't spend a lot on credit, but wanted to get the best bang for his buck.

It did create some questions, but luckily we went through our broker and he was able to smooth things over, explain things and the loan was not a problem.

I'd suggest going through a broker so they can navigate this tricky area and choose a lender who can work with your past history. The last thing you want is another hit on your credit file for a loan that has been declined due to the credit card history.

 

[pwinne]

Hi

Over the past few years I have applied for a number of credit cards to take advantage of various promotions offering bonus frequent flyer points for new applications etc. I have always paid the balances in full and have never paid a cent of interest and cancelled the cards after 6 months or so once all promotional benefits had been received. I have done this 4-5 times over a 2-3year period. I have always assumed that provided there are no defaults or other issues, this would have no bearing on a credit rating.

I recently applied for a card and my application was rejected, even though my income is well above the stipulated minimum, I have no defaults or any other blemishes on my credit file and I currently only have one other credit card with a modest limit.

I tried to get an explanation from the credit card provider with no luck. A friend suggested that it might have something to do with the number of credit applications on my file? Does anyone know if this could be correct?

If so, will this have any impact on my ability to get a loan for a PPOR in 6 months or so?

Thanks in advance

its because some cards are aimed at certain types of people.

I once applied for a low rate card and was knocked back instantly. I then applied for a macquarie platinum card (the next day), and was approved instantly. I spoke to my broker about it and he effectively told me that some cards are aimed at target groups not target incomes!