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Credit record - credit card applications

Discussion in 'Property Finance' started by rizzle, 17th Oct, 2016.

  1. rizzle

    rizzle Well-Known Member

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    Location:
    Melbourne
    I like talking advantage of the credit card deals that come around every 3 to 6 months (free for first year, travel insurance, bunch of QFF points etc)

    Would there ever be any issues down the track when applying for an IP loan if there are two or three applications each year, no interest ever incurred and no applications ever rejected? (i cancel them once bonus points are earned)
     
  2. Brady

    Brady Well-Known Member

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    Might throw a spanner at some point - confirmation of the closures might be worth holding onto.
     
  3. Jerry O

    Jerry O Well-Known Member Premium Member

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    NSW / Melbourne
    im with Brady.. might hurt you later down the track in terms of credit scoring.
     
  4. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Credit scoring WILL die eventually from this kind of 'strategy'. I've dealt with a few people who tried this until they got declined, we could still place the deal and follow up purchases, but by being precluded from certain lenders meant they had effectively wiped out their ability to buy another 2-3 props over the long term.

    I'm more interested in the game of building wealth which gets me to retirement, than bonus frequent flyer points.
     
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  5. rizzle

    rizzle Well-Known Member

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    Roger that. I guess I'll dial it down a notch. I will miss those free flights though :(
     
  6. Brady

    Brady Well-Known Member

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    Yes I've often thought I could juggle around some debt on interest free periods - but really not worth burning the credit file over saving few hundred dollars and also the time taken to get these cards approved / providing documents
     
  7. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Might work out ok for someone not active in property investment. If you are active or plan to be it will limit your choice of lenders so not worth it.
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's not worth it IMO - there's much more potential wealth to be gained from purchasing properties rather than racking up rewards points.

    Some lenders will question every credit file hit over the last two years as well. If they see half a dozen credit card applications it might make them nervous. Keep the file clean if you can.

    Cheers

    Jamie
     
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  9. username0

    username0 Member

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    24th Nov, 2016
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    Location:
    brisbane
    What if you plan on taking out the cc on day 1 (50k cc) and don't plan to buy anymore property for at least 12 months? in which time you'd most likely cancel the cc to get through serviceability?