i'm new to this credit thing, someone told me one time that everytime someone checks your credit rating, it goes down, is that true? and how does that work?
2006-11-13 07:20:24 · 9 answers · asked by nomadlet 1 in Business & Finance ➔ Personal Finance
you can get 1 free report from the bank annually. it costs no money and your score will not change
if you do more then 1, it may drop by a few points, nothing major though
2006-11-13 08:57:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, it is true. My husband and I have been fixing and building our credit so we can buy a house. We have had to be very careful. Our finance manager actually got upset with us for trading in my minivan because it really dropped the score. Just don't go around applying for things you don't need especially if you aren't positive you will get approved because then it isn't worth it. I don't really recommend credit cards because they can get you into trouble. Don't go around opening credit accounts at every store you visit. Don't end up like my brother or sister who pay credit cards with credit cards just to get by. Only use credit when it matters. One major credit card for emergencies is a good idea as long as you realize a brand new t.v. is not an emergency. A cell phone can be important for work and emergencies. A car is important for transportation and a home to live in matters. A killer stereo system is not worth going into debt. Hope this helps. If it makes you feel better we are learning self control too. Take care.
2006-11-13 07:33:17 · answer #2 · answered by Jules 3 · 0⤊ 0⤋
Yes and No. It depends on what they are checking your credit for. Home loans and Auto loans will ding your credit more but only if there are more than 3 in a month ( inquiries) but if they are checking for insurance reasons or a prospective rental tenant it then you should be able to get away with 4-5 inquiries without any negative effect on your Fico/FICA score.
2006-11-13 07:33:29 · answer #3 · answered by Dude 2 · 0⤊ 1⤋
It is rumored, but I read that it actually doesn't negatively affect it as much as some have said. Although it does affect your credit, it is very minimal and there have to be a great number of inquiries on your credit report to show a significant change.
2006-11-13 07:24:30 · answer #4 · answered by DJ 5 · 0⤊ 0⤋
If you get your credit pulled a lot in a short period of time it will deduct points of your score, but if you only have it checked every now and then it most likely will only drop about 2 points each time which is not a whole lot.
2006-11-13 07:25:02 · answer #5 · answered by Jennifer W 2 · 1⤊ 0⤋
it's not rumored. it's fact.
It's called an "inquiry" and it can ding your score, on average, 1-10 points. It all depends on the rest of yoru portfolio.
Also, if you have 5 inquiries in one day its not as bad as once per month for 5 months-- they try and figure out if you are "shopping" for one purchase or just trying to get a bunch of credit cards.
2006-11-13 08:28:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes, it shows activity on your account. It is not normally a problem, unless your credit is real bad.
2006-11-13 07:33:21 · answer #7 · answered by Bill S 1 · 0⤊ 0⤋
Only if they decline you for what ever it is you are applying for in which they are checking your credit.
2006-11-13 07:25:09 · answer #8 · answered by Marge F 2 · 0⤊ 1⤋
what a FICO score is
http://www.mtg-net.com/sfaq/faq/fico.htm
2006-11-13 07:28:20 · answer #9 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋