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If I received conditional approval for a credit card, but now I don't want to go ahead with my application, does this affect my credit score?
Responses
Katrina. Hi. As you have applied for this card, there will be a record of the application against your credit profile. This does not mean it will 'adversely' affect your credit score. Your credit score becomes a history of several of your past events over a long period.
If you apply for any other loan in the near future, I simply recommend that you make your lender aware that the previous application did not proceed.
Hope this helps
Ken
1300 ASK KEN
Thanks Ken, appreciate the quick response!
Would this be the same result if I had chosen to proceed with the application and was then rejected?
Yes - any transactions affect the credit score but there are many lenders who don't use that method to check a home loan application.
If you have received an approval of any description it means that the lender has conducted a credit check. Too many enquiries for credit in a short space of time or collectively over 5years can greatly affect your credit score especially if you shop between different lenders to try and find the best deal over the phone or online - each one could be another enquiry added to your credit file and can be doing a lot of harm.
John Maxwell
0434544225
john@cocalexconsulting.com.au
Katrina. Yes, most likely the same result. New credit reporting rules allow Lenders to report through the decision, however there are very few that do, because of the huge systems investment that is required to be fully compliant with what is becoming known as "positive" credit reporting.
Historically, credit reporting was based on negative matters only ie, when you apply for a loan and also if you default. Under the positive rules lenders are allowed to update your performance on the loan throughout its life, hence the very large systems investment to do this.
It is most likely, your credit report will show the application being requested without any decision recorded.
You are able to access your own credit file. If you go to mycreditfile.com.au you can order a free report, available within 10 days, or pay a fee to obtain immediately.
Hope this helps
Ken
1300 ASK KEN