credit checks bad for your credit ?

[rh71]

I heard that:

- everytime they do a credit check on you, you lose points on your credit
- applying for lots of credit cards is bad for your credit (especially if you don't use them)

They're more or less related... ether of these true ?

 

[Electric Amish]

Yes.

It's because all that's recorded is that some person/company is checking your credit. It looks like you have been applying for lots of loans/CC's. Unfortunately the "Who's checking" either isn't recorded, or not provided.

amish

 

[McPhreak]

^
|
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wut he sed

edit: If you want to improve your credit, apply for a Macy's charge card or any other kind of store/clothing card. They like retailer cards for some reason. Apparently, having a store charge card with no balance is more impressive than a regular credit card with no balance.

 

[Aquaman]

It's ok to check your own credit......... that will not count against you.......... I suggest it in fact ......... every 2-3 years, just to make sure that everything is all right.

Cheers,
Aquaman

 

[mithrandir2001]

Yes, you may "lose" some points but you generally don't become unqualified for a loan simply because you have a lot of credit checks.

Basically, if there is a good reason for the credit check, don't worry about the effect on your score.

 

[RossMAN]

Originally posted by: rh71
I heard that:

- everytime they do a credit check on you, you lose points on your credit
- applying for lots of credit cards is bad for your credit (especially if you don't use them)

They're more or less related... ether of these true ?

True and True.

Most pre-approval offers for home mortgages are valid for 30 to 90 days from the date of approval. So if you have already been approved then STOP applying for any other type of credit. When you find the right house and are without a doubt 100% certain that you are about to buy then see if your pre-approval is still valid or if they need to pull a new credit report (which equals another credit inquiry which lowers your credit score).

Applying for new credit or requesting credit increases = bad if you don't do it in moderation.

 

[spanky]

i heard they were bad.

 

[rh71]

Funny you guys mention homes... we're looking now (or maybe you remembered the other thread). Anyway, the only reason I'm asking about credit is because I got an application form for a VISA card that I really want (ONLY because it looks nicer than the other company that issued my VISA card). I guess in your eyes, especially because I'm about to buy a house, that I shouldn't apply for this new VISA card based on appearance.

 

[RossMAN]

Originally posted by: rh71
Funny you guys mention homes... we're looking now (or maybe you remembered the other thread). Anyway, the only reason I'm asking about credit is because I got an application form for a VISA card that I really want (ONLY because it looks nicer than the other company that issued my VISA card). I guess in your eyes, especially because I'm about to buy a house, that I shouldn't apply for this new VISA card based on appearance.

Yep the only reason I mentioned home mortgage is because I remember your other threads about mortgages. I would NOT apply for anything or request any increases what-so-ever until you have a final approval on your mortgage and have signed loan papers and have received funds THEN I would apply for this "spiffy cool looking VISA" you have.

Which VISA is it?

 

[NogginBoink]

Originally posted by: rh71
Funny you guys mention homes... we're looking now (or maybe you remembered the other thread). Anyway, the only reason I'm asking about credit is because I got an application form for a VISA card that I really want (ONLY because it looks nicer than the other company that issued my VISA card). I guess in your eyes, especially because I'm about to buy a house, that I shouldn't apply for this new VISA card based on appearance.

You want a new VISA card because it looks nice!?

Um... tell the person sitting next to you to whack you over the head with something hard and heavy.

If you were really, seriously honest in that quote, I suggest you find and attend a personal finance class. Or go to www.fool.com and learn all about credit use. Your decision skills in personal finance seem to be somewhat... er... undisciplined.

 

[AU Tiger]

Too many recent inquiries is one of the reasons that can be used in declining credit.

A friend who used to work for Equifax said that you can put a stop on all credit checks for your SSN so that companies can not check your credit (with or without your approval). You would have to have the stop removed before you could apply for anymore credit cards, auto loans, or mortgages.

 

[NogginBoink]

Originally posted by: AU Tiger
Too many recent inquiries is one of the reasons that can be used in declining credit.

A friend who used to work for Equifax said that you can put a stop on all credit checks for your SSN so that companies can not check your credit (with or without your approval). You would have to have the stop removed before you could apply for anymore credit cards, auto loans, or mortgages.

If we're thinking of the same thing, the "stop" is for unsolicited credit applications. These aren't a credit check, per se. Credit companies submit requests to the bureaus to get a list of all potential customers who meet certain criteria. These unsolicited inquiries are not counted against your credit score.

If you apply for lots of credit in a short period of time, this can lower your score because... well, because you're asking for lots of credit in a short period of time.

Having lots of credit is another potential problem. Though you may only have $1000 worth of outstanding balances on credit cards, if your available credit is $50,000, then lenders are wary of lending you money because at any time you can run up those cards and put yourself in a position where you can't pay your obligations.

You can find lots of information on credit at www.creditnet.com.

 

[rh71]

Originally posted by: NogginBoink

Originally posted by: rh71
Funny you guys mention homes... we're looking now (or maybe you remembered the other thread). Anyway, the only reason I'm asking about credit is because I got an application form for a VISA card that I really want (ONLY because it looks nicer than the other company that issued my VISA card). I guess in your eyes, especially because I'm about to buy a house, that I shouldn't apply for this new VISA card based on appearance.

You want a new VISA card because it looks nice!?

Um... tell the person sitting next to you to whack you over the head with something hard and heavy.

If you were really, seriously honest in that quote, I suggest you find and attend a personal finance class. Or go to www.fool.com and learn all about credit use. Your decision skills in personal finance seem to be somewhat... er... undisciplined.

I have almost perfect credit. I worked for it by diligently managing my bills. Personal finance as a concept, though, wasn't my thing. I've applied for so many credit cards (like 10 I can remember) in the past (for free stuff while at college) that I believe one more will not hurt. My credit report is fine, and I wanted to know if doing this affects it at all.

It's a USA Hockey VISA card. It's going to replace my onsale.com VISA card. I will do it after closing on a house. Appreciate the advice.