MrShpilkes
Level 2: Rookie

Multiple Credit Checks

Is any one able to shed some light on this please?

 

I have been a Telstra customer (personal and business (Sole Trader)) for ever and a day and in the last 6 months or so I have added a new personal service to my account and a credit check was performed. I then added a service to my business account and another credit check was performed. Both these credit enquiries affect peoples credit scores. I am now looking to add some more services to my business account and was informed by a Telstra store today that a credit check is performed for each new service. 
Are Telstra trying to drive people's credit scores down?

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9 REPLIES 9
Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: Multiple Credit Checks

A Credit Check does not affect your Credit Score. Failing to pay bills, or applying for Credit does.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
MrShpilkes
Level 2: Rookie

Re: Multiple Credit Checks

Thanks for the reply. I originally thought this however with nothing else changing on my Equifax report except the two Telstra enquiries it did change my score and they were listed on my Equifax report

MrShpilkes
Level 2: Rookie

Re: Multiple Credit Checks

https://www.tio.com.au/help/credit-management/complaints-about-credit-enquiries 

A number of enquiries in a short period of time will affect the score

Jupiter
Level 25: The Singularity
Level 25: The Singularity

Re: Multiple Credit Checks

That's a change in process. In a previous life, we used to be credit checked by multiple suppliers whenever we were setting up a project in a new area and it never had an adverse effect on the score.

Never be afraid to back yourself when trying new things, just always make sure you have 3 escape routes if things go wrong.
MrShpilkes
Level 2: Rookie

Re: Multiple Credit Checks

I understand they need to do the checks in the first place to make sure people can service the account but to be advised they do one for every new service seems a little full on.

Dowser
Level 21: Augmented
Level 21: Augmented

Re: Multiple Credit Checks


@MrShpilkes wrote:

A number of enquiries in a short period of time will affect the score


Apparently “ this flags you as a greater risk to lenders and it may indicate that you are in credit stress. <snip>

These enquiries stay on your report for five years.”

 

Source: https://www.canstar.com.au/credit-score/10-ways-ruin-credit-score/#applications/

MrShpilkes
Level 2: Rookie

Re: Multiple Credit Checks

Yeah, that is my concern. If I sign up 6 services in 6 months, according to the Telstra employee in the Telstra shop I will have a credit check for each new service.

ProfessorPhone
Level 23: Superhero

Re: Multiple Credit Checks

You're absolutely correct Dowser.

"BEING NICE TO OTHERS .. IS NICE"
If I have helped you, a "Like" would be appreciated.

If my advice is a solution, please acknowledge it.

I'm not a Telstra employee.
50 + years exp. in radio comms., eg mobile phones since 1963, two-way radios, base stations, antennas & pagers. Expert in current Telstra Go repeaters & smart antennas.
"Being 76 years of age, entitles one to be an expert at everything!!"
ProfessorPhone
Level 23: Superhero

Re: Multiple Credit Checks

Under the Australian Government's "Responsible Lending Laws", companies selling any financial services or contracted services are obliged to ensure that the customer will be able to pay. That's the prime reason Telstra and other companies who sell contracts requiring payment or transactions do credit checks. You may choose to express your thoughts to the appropriate person who represents you in parliament.

"BEING NICE TO OTHERS .. IS NICE"
If I have helped you, a "Like" would be appreciated.

If my advice is a solution, please acknowledge it.

I'm not a Telstra employee.
50 + years exp. in radio comms., eg mobile phones since 1963, two-way radios, base stations, antennas & pagers. Expert in current Telstra Go repeaters & smart antennas.
"Being 76 years of age, entitles one to be an expert at everything!!"

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