Any experience applying for multiple Bonus Point Credit Cards in a day in Australia?

Credit Cards & Credit Card Programs
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Hi Keith & The Community,

I recently got introduced to travel hacking by Chris Guillebeau (look him up if you are not familiar, this guy is awesome) and have been doing a tone of research into credit cards.

In his 12 day email course Chris explains how he applied for 13 credit cards in a single day for the bonus point promos and earned 300,00 points without affecting his credit score. Sounds great, right? Well here’s the thing… Chris is a US citizen and I am not sure if the laws down under for credit ratings would be the same as all the research I have done suggests that if you apply for more than 4 or 5 cards a year it does affect your credit score because lenders view you as a greater liability because you seemingly need more credit.

I want to know if this is true?
Has anyone ever tried applying for multiple cards a day in Australia?
Did it work?
Was your credit score affected?

Thanks for your great site and community.

Regards,
Brendan

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Hi Brendan,

You are correct. Australia and USA credit rating algorithms are completely different. USA credit score calculation is quite transparent and credit utilisation make up a portion of the credit score. E.g. if A & B person have an average monthly total credit use of $2000 and A has a total credit limit of $5000 whilst B has a total credit limit of $20000, A scores lower in this aspect because the utilization is 40% (2k/5k) while B scores higher because utilisation is lower 10% (2k/20k). They see B as more responsible as only using 10% of their total credit limit.

In Aust in this respect, we are not as ‘advanced’. Credit score calculation for 1 is not disclosed. We get scrutinised for having too high a credit limit. We are seen as high risk if we have a high credit limit.

In a nut shell, general point hacking techniques from the USA can be learnt and applied appropriately within the Australia setting. But cannot be used exactly the same way expecting the same outcome.

If you applied 5-6 credit cards within the same week, I would be so brave to say, you would have done a lot of damage on your personal credit score.

Note: This is of personal opinion and I am not a qualified financial advisor. Please seek professional qualified financial advice from an advisor for your personal circumstance.

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