When you apply for credit you are asking to borrow money you don’t have. So when you go from company to company applying for new credit within a short period of time it makes you look riskier as a borrower because you could be putting more debt than you can handle on your plate. Also if you keep having to go from place to place looking to borrow it might be because you are getting declined at the places you go. When the next lender see that, it could make them reluctant to lend to you as well. If I tried to borrow money from you after you heard that four other people you knew told me no wouldn’t you think they had a good reason to tell me no?

What Information is Considered

How Many of Your Accounts Are New Accounts

How Many Inquiries In The Last 12 Months

How Long Has It Been Since You Opened A New Account

Is Your Payment History On New Accounts Good

Try not to apply for too much new credit because new accounts will lower the average age of your accounts. A lot of inquiries also lowers your score but the point drop is very small. Auto, mortgage, and student loans are given about a 30 day window where you can shop around for the best rates and all inquiries within 30 days for those type of loans are calculated as one inquiry in your score. Also inquiries stay on your report for two years but only the last 12 months count in your score.


Clean Slate Credit LLC

Owner-Will Frazier