Questions about applying for credit
Date: Wed, 06/07/2006 - 09:24
I recently applied for a store credit card and was denied because I have no credit. Are these good scores for applying?
I want to apply for more but I don't want to affect my score. Is there any way around this?
This will sound crazy :shock: but it'll make sense in a minute.
This will sound crazy :shock: but it'll make sense in a minute. Take all of the "pre-approved" card offers you get in the mail and research them all. Find the best deal for you and then apply. The worst they can say is no. The companies that send you these "pre-approved" offers have already checked your credit using what they call a "soft hit". It will show up on your report but it won't damage the score. After they have recieved your application then they will check again with a "hard hit". Also, I wouldn't do more than 2 in a 60 day period. That will help protect your credit score as well. :wink: I hope this helps! :D
Too many credit requests are seen negatively by your lenders. Th
Too many credit requests are seen negatively by your lenders. These inquiries will remain in the file for 2 years. The inquiries made in the last 6 months will count most heavily against you. Therefore, you should review your file thoroughly and see if each inquiry was having a permissible purpose. Section 604 of the Fair Credit Reporting Act (FCRA.) has a clear explanation on it. In my take, you should not have more than 5 inquiries otherwise it will result credit denials.
I understand about the too many requests. Is there a "good"
I understand about the too many requests.
Is there a "good" way to apply. Meaning should I only apply only once every couple of months, or something like that?
Does anyone know about Rate Shopping here? Guys, if I am going t
Does anyone know about Rate Shopping here? Guys, if I am going to take a mortgage loan or an auto loan, I will definitely contact different lenders and see who is going to offer me the lowest rate, right? I don't see anything wrong in it. But all those lenders are going to pull my report and the inquiries are voluntary, so they will be counted.
Rate Shopping is something that counts all the inquiries ran within a certain period of time as a single inquiry. Different versions of FICO use different time span for Rate Shopping ranging from 14 days to 45 days. So it is speculated that if you do your loan shopping very fast, it won't hurt your score much.
Rate Shopping is typically applied for mortgage or auto loans. I have no idea if it is considered similarly for credit card applications, any thoughts?
P.S. Pre-screened credit offers which are not initiated by the consumer do not hurt your score.
