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Your Free Credit Score: How To Go Shopping For New Credit Without Hurting Your Score

Published by Jeremy Englewood | February 25th 2009 | Views:

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We've been warned, time and again, that new credit may have an adverse effect on our credit rating, and that credit bureaus will tend to give us a less desirable free credit score if we shop – or even window shop – for new credit in too short a period. Here's the nitty gritty on shopping for new credit.

Credit bureaus recognize that the internet has become a way of life, and many consumers are likely to do their rate comparison and window shopping through the internet. However, it remains that applying or inquiring about new credit cards will have a negative effect on your free credit score, especially for people who do not have a long enough credit history.

Multiple credit requests – applying for several different credit cards at the same time – present a less than favorable picture about the shopper, because this implies that the person is desperate for new credit.

Note that any credit inquiry you make will be recorded on your free credit report. Credit inquiries normally have a small impact on the free credit score rating, like 5 points subtracted from the credit score. However, if the person has a very short credit history a bigger number of points may be deducted. Also, if you have too many inquiries – say six or eight credit card applications – this is a sign to the credit bureau that you could be a high risk.

The free credit score does not count certain inquiries such as when you request for your credifor a new credit card, you can inquire from different credit card companies but confine your rate shopping to a maximum of two weeks. Shop only for one type of credit at a time. If you intend to apply for a car loan apart from a new credit card, postpone your car loan shopping until several months later. And, when you do go rate shopping for the car loan, confine your inquiries to a maximum of 14 days.

Because credit inquiries have the effect of lowering your free credit score, apply and/or shop for new credit only when you need it. Don't apply for a new credit card just to have what they say is a good credit mix. If you don't need the card, by going for a new one you're getting something you don't really need, and lowering your free credit score rating unnecessarily.

To learn how else you can raise your credit score for free, visit our website. Our practical and easy to follow tips on how to get your free instant credit score and free credit score information will help you improve your credit rating and be more attractive to lenders.


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