The Marvelous Mad Madame Mana asked:
Say you apply for a Wal-Mart credit card multiple times, though you know you’ll probably be declined because you only have a little bit of credit… could something like that contibute to “bad credit”?
i’ve only had my capital one card for a few months, and i’ve applied [for special offerers and such] for 2-3 other cards and have been denied.
i just over heard the butt-end of a conversation about this and wanted to know if it was true or not.
DREW
Comments
Yes, recent inquiries do negatively affect your credit. The impact is marginal, but multiple inquiries will hurt more. I’ve seen this happen with people trying to buy a car, and going through the application process at multiple dealerships. After 4-5 attempts, they start getting denials and don’t understand why.
Look at it from the lender’s standpoint. When a creditor extends credit to you, they want to be reasonably sure that you can pay them back. But if they know there are 3-4 other lenders out there also considering offering you credit, that fifth lender will be reluctant until they have more details about the commitments you’ll be making to those other companies.
yes it can lower your credit score because you get so many points off for multiple credit inquiries
It is true that if you keep applying for credit that it decreases your score. It is because you are having to many inquiries into your credit report.
yeah i’ve heard that too. my sister got a new car last summer, a 2007 mazda cx-9, and in the process of getting it, they had to check her credit alot, to get financing and things. she didn’t even know about some of those checks. but anyway, it did affect her. she’s repairing it now and its getting there.