February 6, 2019

10 Ways You Think You’re Helping Your Credit But Are Actually Hurting It

Opening several new credit cards in a short amount of time

Did you open a new credit card at the mall, so you can get 10 percent off your purchase? Then you got home and saw a credit card offer promising you free travel, so you applied? While these cards can seem like good deals, proceed with caution.

Any time you open a new credit card, the card issuer will check your credit. It’s called an “inquiry” and it shows up on your credit report where it will stay for two years. Too many of these types of inquiries on your report can be a red flag for lenders since it could be an indicator that you may get in over your head with debt.

Additionally, every new card lowers the average age of your credit, which is another important factor in determining your score. Having a long credit history makes you more creditworthy in the eyes of lenders who value a successful track record of managing debt. Be especially careful about opening new credit cards if you plan to take out a big loan such as a mortgage.

Previous 1 2 3 4 5 6 7 8 9 10 11 Next

Click Here to Leave a Comment Below

Leave a Reply: