Credit card application

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Forums › Finance and wealth management › Credit card application

canaletto

21 posts

Geek

#205221 3-Nov-2016 21:01

I applied for a credit card at a bank and told them I had two other credit cards with different banks. They would only approve my credit card application on condition that I closed the other two cards; the reason being that they thought I wouldn't be able to afford the repayments in the event that I maxed out all the cards. So I agreed, and closed the two cards.

However, I'd actually be pretty keen to reinstate one of the credit cards that I had to close. Is there anything wrong with doing that? The way I see it: when I request to reinstate it, they may ask what other lending I have and I'll tell them. They can decide whether it's affordable or not, or they could drop my limit. I just don't want to do something that looks underhand.

tardtasticx

3075 posts

Uber Geek

#1663490 3-Nov-2016 21:40

You could ask for your bank to reinstate one of your old cards however if the account is closed they may need to have you reapply from scratch.

You also may have to do a credit check and if you've got a lot in a short space of time this might not look great on your credit report or score, so be wary of that. If the old bank does the check and then says no you've done a check for no gain.

Then of course if the old bank knows about the new card they could worry about you not being able to afford repayments. This isn't something they do to be mean, it's one of their responsibilities as a lender because it's very bad practice (possibly illegal?) for them to lend to someone if they have doubts about them being able to fulfil the loan or pay the bank back if the credit line is maxed out.

All in all, personally I wouldn't go back to the other banks, at least not for a wee while. But there's nothing stopping you because worst case is they say no and you have a new credit check.

canaletto

21 posts

Geek

#1664165 5-Nov-2016 11:17

Thanks, that was helpful. I'll probably just chill for a while and see how I go with one card.

Some useful tips re credit ratings, on page 9:
http://mycreditfile.co.nz/sites/default/files/Veda%20-%20Understanding%20Your%20MyVedaScore.pdf

floydbloke

3523 posts

Uber Geek

ID Verified

#1664417 5-Nov-2016 23:16

I don’t know your circumstances and I’m not judging, but why do you need more than one credit card?

If it is to pay for one big ticket purchase then there may be cheaper ways to get credit.

If it is to pay for day-to-day living expenses then maybe it is time to review your budget and/or lifestyle.

Did Eric Clapton really think she looked wonderful...or was it after the 15th outfit she tried on and he just wanted to get to the party and get a drink?

richms

28176 posts

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Trusted

Lifetime subscriber

#1664421 5-Nov-2016 23:43

I have several because of the different risk profile of various merchants. Its a real PITA to change recurring billing places when a card gets compromised and a new one issues, so trustable places in NZ, paypal, and me in person with paywave or chip get one card (my rewards one) - other places I trust less use one of my other ones. When some craphouse ecommerce site gets hacked and the card details taken, I dont have to update all the things like the power, internets, and other bills that just happen.

Also for places that use the card as a way of limiting the number of free trials etc.

And you can get staggered due dates so you are always putting things on the card with the longest interest free period.

Also a card with the same bank you have money with means that you can pay the card immediatly if it hits the limit. If your money is in a different bank then it takes days to get to the credit card.

Plenty of reasons for more than one card that are not because you need to review budget.

Richard rich.ms

canaletto

21 posts

Geek

#1664424 6-Nov-2016 00:13

I live within my means and don't actually need the credit. In fact, I'm one of those strange people who pay off their credit card in full each month - without fail.

I like to have more than one credit card for a few reasons:
* Credit utilisation: I use up to 20% of my credit limit on each card, for credit rating reasons. So if I've spent my 20% on card 1, I move to card 2
* Redundancy: if one card gets compromised and blocked, I have the other card. Or if the issuer of card A is having system issues causing the card to not work, I have card B
* Other unexpected stuff: card is physically damaged or lost/stolen. Or a large transaction accidentally goes through twice and occupies a large portion of my credit (e.g. hotel deposits or rental car deposits).