You know that too many inquiries can hurt your credit score. So choose what you apply for carefully and really think about whether or not this new credit card or loan is worth dropping your credit score by a few points.
However, you should not be applying for all of these cards. Looking through all of the terms for each one of them is one thing, but applying for all of them is another. Were you aware that making a number of inquiries could actually hurt your credit score? Well, it can and could actually end up doing quite a bit more damage than you would think.
The truth of the matter is, every single time that you apply for a credit card or inquire about any type of a loan or store credit, the information will show up on your credit report. This is called a "hard inquiry". A hard inquiry can actually drop your credit score by several points. Many times, people will apply for different kinds of credit while they are completely unaware that the inquiries are going against their credit score. It is actually too bad that this information is not given to these individuals up front so that better choices may be made.
Another common misunderstanding is that requesting a copy of your credit report can actually hurt you. However, this type of an inquiry is called a "soft inquiry" and should never count against your credit score. If this kind of error ever shows up on your credit report and it is showing against you, it is very important that you go through the steps to resolve the error immediately. Mortgage InquiriesThe credit reporting agencies have made one exception knowing that today there are so many mortgage companies you can go to for a home loan. They have made it that multiple mortgage inquiries made within 14 days are treated as one inquiry. You should try to do all your "rate shopping" within a 30 day period. These inquires are generally not counted against your score. Many creditors will look to see the exact amounts of credit inquiries that you do have on your credit report. Depending on the guidelines of each creditor, four or more inquiries within a certain time frame of six to nine months can be considered to be quite an excessive amount. If they do deem this amount of credit inquiries as excessive, they could end up denying your credit request. This request and denial will then show up on your credit report along with any others that you may have. All of these inquiries will hurt your credit score. So choose what you apply for carefully and really think about whether or not this new credit card or loan is worth dropping your credit score by a few points.
Things that Lead to Bad Credit
Every consumer must think about maintaining a good credit history. But maintaining good credit may not always be so easy. In this article, let's discuss the factors that can lead you to bad credit and how you can avoid them:The Issue of Hidden Credit Card Costs and You
It cannot be denied that credit cards are a part of life. We use it in buying groceries, clothing, paying utilities, purchasing airline tickets, making hotel reservations, etc. But many consumers who own credit cards fall in the trap of bad debt. Why?Bad Credit History - One Of The Basis in Hiring An Employee
Not many people reason pay attention to their credit history. Others may say that they don't need to build credit since they have no plans of getting a loan or a mortgage anyway. But even if you don't need to apply for a loan today, you may need to do so in the future.