Is my credit score affected by repeated refunds?
Short answer, no.
Slightly longer answer - no, but you should still take heed.
The good news is, there's no connection between credit card refunds and your credit score. However, you should note it will affect other things. For example, if you're using a rewards card, any points earned on the purchase will be reversed once your refund is complete.
Also, refunds aren't processed instantly and you should ensure you aren't teetering close to your credit limit. This is called your credit utilisation score – a measurement of how much of the available limit you currently are using. Let's say you have a $10,000 credit limit and consistently use more than $7,000 of credit available, it could be dangerous as it shows the banks you're a potential problem customer.
Worried about your credit score? Here are 5 common ways we damage our credit scores.
And of course, you should start with finding out what your credit score is. The banks do – so should you! Join 12,000+ Aussies and get your free credit score today.
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The products, banks and companies mentioned in this Ask Miles question and answer section was correct at the time of publishing. The information published is general advice only and should not be taken as specific personal finance advice.