First, lets clarify the difference between a soft credit pull and a hard credit pull, as we will be discussing how a hard credit pull affects your account. Next, its important to understand that not all hard pulls on your credit report are created equal. For example, applying for multiple revolving accounts such as credit cards in a short period of time represents greater credit risk under the FICO scoring system.
Because report identity theft applying for multiple accounts is viewed as a credit risk, it will negatively impact your credit score. As an aside, some have used Credit Card Arbitrage to report identity theft avoid the immediate sting of hard pulls on their credit score. The idea report identity theft behind credit card arbitrage is that you can apply for a lot of credit cards within a short amount of report identity theft time to take advantage of no interest introductory offers or sign-up bonuses.
If you apply for many cards at the same time, the credit card issuers will not see the negative impact of all report identity theft the inquiries when they evaluate your application. Your score will be negatively impacted once the credit inquires appear on your report identity theft report, but not before decisions have been made on the credit card applications. While applying for multiple credit card accounts report identity theft in a short time period can hurt your credit score, rate shopping for other types of credit is different. check credit score online For example, you may submit multiple credit applications when shopping for a mortgage, car loan or student loan. Known in the myFICO world as rate shopping, the credit scoring system understands that you are shopping for the best rate, not actually applying for multiple mortgages. Assuming you actually open one mortgage, car loan, or report identity theft student loan account, FICO will treat the multiple applications as just one inquiry. Its also important to understand that the impact of credit inquires can vary from report identity theft one person to the next. The impact can vary depending on what accounts you already have, your current credit score, report identity theft the length of your credit history and so on.
A person with a credit report identity theft score of 750 that applies for report identity theft a credit card will not be affected report identity theft the same way that someone with a 500 credit score is affected when applying for the same credit card. credit history report While its impossible to exactly predict how an inquiry will affect your score, myFICO does offer a credit score simulator that will give you some idea. One thing to keep in mind is that applying for new credit can also improve your credit score over the long run. Remember that one of the key factors used to determine a FICO score is credit usage (how much you owe as compared to available credit). New accounts increase your available credit, which can be helpful so long as you dont max out the available credit. When I report identity theft use myFICOs credit simulator and assume report identity theft I open a new credit card account with a $5,000 line of credit, the simulator predicts that my new score will go fall within a range of 10 points lower to 10 points report identity theft higher than my current score. As long as you manage your finances appropriately, report identity theft you should find that credit inquires play a relatively small roll in determining your FICO credit score. Nevertheless, if you are fighting to improve your credit score, do not take credit applications lightly. Apply for credit with care and only if you really need the credit. 2 comments read them below or add one Your last sentence is good advice regardless of how inquiries affect your credit score. Some people dont realize that credit isnt like handling monopoly report identity theft money The only inquiries that count toward your FICO score are the ones that result from your applications for new credit. company credit check free Previous post: Retirement Income Security report identity theft Made Simple Next post: The Best Hotel report identity theft Rewards Credit Cards September 2011 The information report identity theft found on the Dough Roller is provided and intended for informational and entertainment report identity theft purposes only and does not constitute financial, legal, or other advice of any kind.
