Usually have no problems churning cards, but this time I must have made too many applications in a short space of time. Denied cards from Citibank and Westpac (for no other reason so I know it’s from too many applications) and am now “resting”. I know it’s a general unknown, but anyone who’s been denied cards in similar circumstances, would one month wait from date of denied cards be long enough to apply for either again? (I have an offer I want to take advantage of and then be able to then churn that card in time for another by a certain date).
It’s complicated, but I would definitely recommend against making more than one credit card application every three months. Every application has a negative effect on your credit score, but applying too many times in quick succession has a strongly negative effect as credit providers see multiple applications as a sign of financial stress.
When I apply for credit cards, whether the application is approved or rejected, I always wait 3-4 months until the next application.
In terms of individual credit providers: I know that with American Express they will only consider applications made 6 months or more after a rejected application. I’m not sure about Citi and Westpac, but my guess is that 1 month is not long enough.
More bad news: I just checked my Credit Overview report and it still lists my applications for credit from 2017. So your recent applications will negatively affect your credit score for years to come.
The good news is that your applications from 4-5 years ago will slowly be dropping off your Credit Report as each month progresses – so if you do nothing your Credit Score will slowly grow each month. You can also increase your Credit Score by cancelling any surplus-to-requirements credit cards that you have.
All the best!
@sixtyeight Thanks again sixtyeight!! Solid advice as usual and I totally agree that’s best advice. But I’m adventurous and like to live on the edge! I usually immediately apply for a new card straight after cancelling one and in the vast majority of occasions have success, and with cards with a minimum $6,000 credit limit I find you can sometimes have two cards running at the same time. Sometimes that will mean applications are 3-4 months apart by the time you get the points and apply for another one, but not always. But I certainly get what you’re saying as a general rule to have no issues. I guess it’s different for each individual, but I use Clearscore and despite having had over 40 cards I really don’t seem to see any movement in my credit score number, but this is just my personal experience and it will not be the same for everyone. While it’s just below the average, it remains relatively stable. I’ve heard a general 3 month wait after being declined, but I just wonder how many succeed waiting less time after a decline? Always the risk you get declined again and then I wonder if the wait time between card applications starts again from then?
And thanks for the advice on Amex!
Yes, everyone is different with different circumstances, and different abilities to repay. I’m glad that you’ve had such success with your credit card churning!
I do love your strategy of applying for more cards with lower credit limits, rather than fewer cards with higher credit limits. That’s my strategy too and I agree that over time it will get you more points.
40 cards!! That is impressive! In how many years though?
What do you use Clearscore for? do they repair your score?
@nesnaj That’s since about 2017 when I started out point hacking. “Clearscore” is just one of the free services you can use to check and monitor.your credit score, how it fairs against the “average” score, and some of the information that credit providers see. You can see when banks query your score after applications, and see what credit providers are currently open against your record. It’s just a free way of seeing your info. It’s not an official credit reporting agency like Equifax etc. But if you do happen to.see a credit provider on there when you no longer have credit with that bank, it’s helpful to know and you just contact the relevant financial institution itself and tell them to correct it.
Thanks. I’ll check out Clearscore. Sounds like a helpful service/website.
I have not had an application rejected for a few years. Got rejected from Amex recently to my surprise. Very sobering experience indeed.
From what I have gathered, credit score no longer is that important. I think total credit limit now is what banks care about more.
May not be a fact. Just my 2 cents.
It’s the total of the credit limits that seems to be what really matters to the banks’ algorithms when accessing an application.