Lots of credit card applications - what are the impact on credit score/rating?

Hi pointhacks,

I have never had any issues defaulting on any loans, and have always paid off my credit card accounts in full when due.

When I check my credit score with equifax, it tells me what is hurting my credit score is the number of credit applications with multiple credit providers.

I have applied for an extensive number of credit cards, and have held different cards over a number of years - trying to take advantage of various bonus offers. I have never held a huge amount at any single time, nor had a ridiculous amount of credit available at any one time.

I will often have applications rejected these days, and I suspect it is because of this - having had and applied for so many credit cards across time.

I suspect banks are wise enough to predict which applications are likely to be just people trying to cash in on some bonus points with the intentions of subsequently cancelling the card after earning the points? Do you have any thoughts about this, or on how to manage this?


It depends on how many is lots, or extensive. You havent mentioned how many credit cards you have applied for and how often. I have applied for 3 in 5 months and all are approved.\r\n\r\nThere is absolutely no way of knowing how many is to many, even the banks dont know, Credit card assessments are automatic.\r\n\r\nIf you feel you have been applying for too many credit cards, then stop doing that for a while. Otherwise it might also be that you have changed jobs, careers and residential addresses. All these things make a difference.

Check out How Credit Records Work in Australia

It is a very deep topic. I read it a few times and still can’t say I fully grasp it. The way one’s credit score is calculated is a mystery in Australia in comparison to US.

I am not a qualified financial advisor so please do your own research. As far as I know, the number of credit enquiries and how frequent (time between enquiries) play a major role in how credit score or rating is calculated by credit bureau and financial institutions like banks.

Until a few years ago, Australia credit rating works predominantly in ‘negative reporting’. That is it only reports anything that increases your credit risk like credit card applications, loan applications, default/bankruptcy. Positive events like paying your credit card bills on time and in full or closing your creditcard accounts to reduce your line of credit, doesn’t do your credit rating any good. Positive reporting has been taken up in recent years but take up/coverage is unknown.

So my gut feel is you have done too much damage to your credit rating within too short a timeframe. Best to lay low for at least 8-12 months and monitor your credit score to see whether it will slowly improve.

Good luck.

Yes. Any card provider can see all your recent applications. Applying for lots of cards also shows you are a non serious customer . Whilst you may be chasing bonus points it can also be interpreted as chasing lots of credit and seen as a risky customer