How multiple credit card applications can decrease your chances of being approved

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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When it comes to applying for a new credit card that has all the features that ring your bell you could be decreasing your chances of getting a nod in your direction by various lenders if you apply too many times. To make the most of each application there are a few things that you need to keep in mind so that you can be approved as soon as possible.

Applying too many times

Applying to many issuers to see which one will approve you first is a dangerous game of credit card roulette. This means that for every time you apply it can have a negative effect on your credit file. Every time you apply a lender will look at your credit history to see whether you have a good history of borrowing and paying your bills on time.

But this also means that the multiple inquiries made on your personal credit in a short space of time can affect your credit score. It will also make lenders see you as a high-risk applicant, which is not good for future borrowing.

What is considered as applying to many times?

There is no set answer as tow hat constitutes as applying to many times because there are various factors that are taken into consideration by lenders that can affect this process. If you have a good credit history, you probably will not be affected by having a few hard inquiries made on your credit history.

However, if your credit history has seen some bad days a hard inquiry by various lenders can prove to be detrimental to your application. Thankfully, the number of times you apply is not the be all and end all when it comes to deciding on whether you should get a card or not.

What you can do

An application rejection is a sign that there are a few things that you need to get sorted out before applying again. Losing 5 points on your credit score for having your application rejected can be a minor deal for someone who has a credit score that is comfortably sitting at 800, but this could spell trouble for someone with a credit score of 500.

When it comes to applying for your new piece of plastic you need to think like a lender. You need to know what the application criteria are and what will your lender be looking at. This can be used as a measuring stick. If there are a few things that you do not meet use the time to fix these errors instead of applying again.

You can mend your credit history and increase your chances of approval by:

  • Checking your credit report by requesting a free yearly credit report for any errors or arrears and have these rectified.
  • One application at a time will help you avoid any hard inquiries that could affect future borrowing.
  • Compare your card options to see if it is a suitable card for the type of spender you are and whether it is within your financial reach when it comes to monthly repayments.
  • Making payments timeously is a good sign that you are trustworthy and will be able to take care of your new plastic.

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