One factor that can hurt your credit score is too many credit history reviews. A credit report “review” is when a business checks your credit history.
There are really two types of inquiries into your credit history. One is more of an overview, like when a credit company wants to pre-approve you. The other is a more significant inquiry; when a creditor is determining whether they will approve your actual application for a loan.
Too many inquiries can erode your score. The worst kind of review is the “harder” one performed when you fill out an application. If you want a new credit card, it is important that you don’t shop around by applying to a bunch of cards. It is better to call and review their rates or check out online sites before attempting to sign up.
Often people do go loan shopping when buying a house or car. This can be wise, but the key to keep your credit score high (which will also help you get a better loan), is to casually compare rates before you narrow it down to a few who you actually fill out forms for. Yes, many of them will not quote you a firm rate until they look at key financial components like income and credit reports. You should still be able to get a general idea in your first round of looking before you drill down to a couple to try.
A quick search online to places like www.bankrate.com or www.creditcards.com can provide you a wealth of information on loans and credit. By utilizing sites such as these, you can narrow down your search with complete privacy. Make a list of the top lenders for your situation, then take the time to fill out only a couple of applications to help compare the best final rate.
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