Consumers making too many credit card inquiries
Consumers are unknowingly jeopardising their credit scores by making repeated credit card inquiries, according to a new study.Consumer credit group Credit Savvy surveyed 50,000 of its members and found that 14.1 per cent had five or more credit card inquiries on their credit file. This increased to 20.3 per cent when looking at the 25 to 34 year age group.Credit Savvy managing director Dirk Hofman said Australian consumers appeared to be unaware of the impact of a credit card inquiry on their scores."When a consumer applies for a credit card, the lender can make a credit bureau inquiry. Each time they do this the file shows that the consumer applied for credit," Hofman said."A large number of inquiries could be read as an indication of a more risky borrower."Credit Savvy found that a consumer with five or more inquiries on their file had a credit score 128 points below average and a consumer with seven or more inquiries had a score that was 178 points below average.