| Does applying for a credit card hurt your credit rating |
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nixies
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| Does applying for a credit card hurt your credit rating |
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Hi this is a little bit of a silly question, but I'm not sure how good my credit rating is and I am considering applying for a crexit card in order to move my debt on to a introduction 0% rate.
My question is I'm slightly worry about doing this becuase I heard one that if you apply for a credit card and get refused it hurts your credit rating. Is this true?
Sorry about my spelling! Dyslexic.
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Sun Sep 27, 2009 2:56 pm |
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coaster
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General one or two applications will not. What they're looking for is a whole bunch within a short while; something that would extend a lot of credit to someone who isn't credit-worthy.
Here's a website of the company that developed the FICO credit-scoring system; they explain what affects scores:
www.myfico.com
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Mon Sep 28, 2009 12:54 am |
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muaz alwi
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Generally not .But it can also affect your credit performance.
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Mon Dec 14, 2009 2:39 pm |
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archercredit
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Applying for a credit card will put an inquiry on your credit report. This will hurt your credit score very little, unless you have a lot of them and they are all very recent. Other lenders can not tell if you have been denied credit, but they can see if you have inquiries and make their judgment on that.
I would recommend finding out what your credit score is and you shouldn't have a problem applying for 1 credit card, especially if you want to use it to help out with your debt. Try to keep the balance below 35% and don't be late of course. Here is an article on credit scoring with a little more info on how late payments affect your credit.
http://www.thefreelibrary.com/How+to+Remove+Late+Payments+on+Your+Credit+Report-a01074020765
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Tue Dec 15, 2009 8:36 am |
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Elmira Nancy
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For one applying for new credit and getting it drops your score slightly because it shows you are taking on new debt. Then canceling it drops it slightly because it shortens your open credit history. These are generally temporary drops so overall it shouldn't affect your score much but the repeat pattern might seem a little wierd to someone examining your credit for larger loans.
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Sat Jan 02, 2010 7:22 am |
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jefftessin
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When applying for a credit card or permitting any 3rd party (like landlord, lender etc') to do a credit check, an inquiry is made and it hurt your score a little bit but many inquiries adds up and can hurt your score critically.
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Sat Jan 02, 2010 10:48 pm |
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TurnDebtIntoWealth
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| Credit Inquiries |
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Every time you apply for credit, the lender will pull your credit. Having multiple credit inquiries will cause you to shed a few points off of your credit score. Be careful.
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Sun Jan 03, 2010 4:58 am |
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coaster
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There's an exception for multiple credit reports from mortgage lenders, if they're done within a short time. The FICO scoring model assumes that when shopping for a mortgage you're going to get multiple quotes and so they don't nick your score for that. I'm not sure of the time period, though. I think it's 30 days. It probably says on the Fair Isaac website (link in my post above)
~Tim~
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Sun Jan 03, 2010 9:13 pm |
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jefftessin
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quote:
Originally posted by coaster
There's an exception for multiple credit reports from mortgage lenders, if they're done within a short time. The FICO scoring model assumes that when shopping for a mortgage you're going to get multiple quotes and so they don't nick your score for that. I'm not sure of the time period, though. I think it's 30 days. It probably says on the Fair Isaac website (link in my post above)
As you mention this is the exception. In case of looking for a house to rent if several potential landlords will do a credit check then it will hurt the credit score. So it is important to be aware of the fact that initiation of credit checks can damage the credit score and try to keep it to minimum.
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Tue Jan 05, 2010 12:39 pm |
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davidbkeegan
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If you're only applying to one, it will not hurt your score very much. It's when you apply to a dozen at once and get rejected from all of them. That's when it looks a little fishy on your report.
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Mon Jul 26, 2010 12:33 am |
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Stuartthomas
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New credit applications can detract from your score. Even an application for a department store card can lower your score. Multiple applications can have a devastating effect on your score, especially around the time you are shopping for major purchases like a car loan or mortgage.
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Mon Aug 02, 2010 6:37 am |
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