Help with Credit Card

Hi Guys,

I recently applied for an American Express Credit card (Explorer with an annual fees of AUD 400). My application was rejected and the reason mentioned was "Too many application in a short time".

This made me nervous and I thought that I am a victim of identity threat. I called the bank and they said that they have never received any prior applications from me. When I asked them that your reason is contradicting they said that government guidelines restrict them from telling the exact reason to the customer!

I also checked my credit report and to my surprise my score was "average"

Can someone help me to understand what is happening here.

I am worried that an organisation is not comfortable in issuing me a card with a AUD 6000 limit then how will I get a home loan worth 1-1.1 Million in future.

Any help will be highly appreciated. Since we are at it can you please suggest a credit card as well.

Little about me -

No home loan
No personal loan (I had a car loan which I closed early by paying in full and early exit fees)
No credit card
No dependents
Permanent Job with 145K Salary

Looking forward for your response.

Thank you

 

It May be worth making a complaint to the ombudsman. They took the decision on your application and provide you with misleading information that you have applied many cc in a short time etc. And they refuse to discuss their position.

https://www.afca.org.au/make-a-complaint/credit-finance-and-loan-complaints

Their rejection may also impact on credit history. Push is hard and you get your card approved.

 

Didnt you know this a few months ago? Your credit score was average a few months ago when you were also surprised it was average. The reason was your car loan applications. Your credit score is not about your current situation but what you did in the past.

why that card? Is it because you were after the bonus points?

tbh, you still lack the strategic view of finances. Set the long term goals and reference everything towards that. These short term ‘oh i didnt know’s will kill those goals.

 

Go to:
Credit Score | Credit Report | Equifax

Get a full copy of your credit report (the score is irrelevant). That will show you what sort of activity has been going on. If there is fraud, it probably hasn't been occuring with your existing bank.

Subscribe to the credit alert feature, it will let you know immediately if future enquiries occur.

If you find fraudulent transactions, get in touch with those lenders, get them to remove the enquiries from your report. They will have a process for this (but it won't be easy).

Also don't publish "Little about me" type info online. This sort of info isn't relevant to your question here and can be used as part of the identity theift process. It's incredible what sort of info people give away online.

 

Regardless of the score, how many recent enquiries are showing? This is what the bank's referring too as too many apps in a short timeframe, doesn't mean you've applied with that particular bank it's ALL recent credit enquiries

 

This is a bit overkill and honestly not worth it for a $6000 credit card.
They will just say they're adhering to 'responsible lending laws' anyway
A decline of credit does not impact the credit score, a credit enquiry does, declines do not show on a credit report.

 

Each individual needs to do it separately.
There are other plans, you don't have to subscribe to the Ultimate product to get credit alerts, prices start from $4.95 per month for the basic membership with credit alerts, I use the Premium product which is $9.95 per month and have been happy with that.

 

Thanks guys. Much appreciated.

I checked my credit report from Equifax again and couldn't find any unusual activity there.
Maybe 9 credit checks in last 2.5 years is the culprit? Last one was in April 2021 (For postpaid connection).
Any tips for achieving a healthy credit score? Shall I still try to get a credit card? Will making credit card payments on time in full will help with the credit score?

 

What have you done since a few months ago when you asked these exact questions?

 

All the utility bills, house lease, credit card are under my wife's name.
I had a personal loan which I closed. I just have a postpaid mobile connection under my name.
So basically almost no factor which can contribute to my credit score.

I thought getting a credit card and paying the bills in full and on time will help my credit score.
That clearly didn't work and infact made things worse.

 

why did you think this? What was the source of this information?

 

Yeah majorly because of the bonus and reward points.

 

9 credit checks in 2.5 years might or might not be a problem, but if the last one was in April, I'd say there isn't a problem overall.

Assuming you're aware of each of the queries, then this isn't a fraud problem. They are normally quite obvious.

 

Definitely worth applying for the bonus points.

In my application to Amex Explorer earlier this year, I had to call them up to clarify a few things and they eventually approved it.

Did you provide all the information to Amex when you submitted the info? If not, they could reject your application when they see the credit history.

I suggest you talk to them again to find out more specific issues which you can then deal with,

 

I was told a credit application made through your bank is approved by your bank manager?
So if your bank has the card you are seeking it is almost instant approval.