Does it show up on your credit report? Make your credit score go down? What about maxing out your credit cards you do have?
2007-01-18 08:37:00 · 17 answers · asked by Johnny Carcinogen 3 in Business & Finance ➔ Credit
If it's excessive it will hurt your credit temporarily, but not drastically.
If you max out cards, you will definitely kill your credit score. Again, it would be temporary until you get debts down to manageable levels.
As long as you're not late on payments and avoid collections and charge-offs you'll be ok. But in the short term you can do minor damage to your credit score with maxed credit limits and lots of credit applications.
Try to keep applications to a minimum unless you really want the credit card. Also keep debts at or less than 50% on each credit card. Otherwise your credit score will suffer.
Don't freak out about it. As long as you're not late you are only doing temporary damage. If anything, you should request higher credit limits on all your credit cards. This will increase the amount of available credit.
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-18 09:14:50 · answer #1 · answered by Todd S 3 · 0⤊ 0⤋
Yes, everytime you apply for credit, your score drops (unless you are shopping around for interest rates and apply for all the items within a 14 day period for the same reason and your credit is checked by the same bureau). Yes, the inquiries show as a "hard" inquiry and makes your score go down about 5 points for each inquiry. (The actual points depend on your other credit history. A "soft" inquiry does not hurt your score and is used by companies who do not receive a full credit report, just enough for a pre-qualifying offer.) Maxing out your cards also makes your score go down. You want to use 30% or less of your available credit.
2007-01-18 12:41:15 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
If your credit is already bad applying for credit cards will only make it worse. You can have maxed out credit cards but as long as your paying your bills on time and paying off about 20 dollars more then your minimum payment it can help build your score.
2007-01-18 08:41:59 · answer #3 · answered by meka g 6 · 0⤊ 0⤋
Yes it can. I may make lenders believe you are desperate or living only off credit. Get a few credit cards if you must but its best to have varied debt including car and home loans. Maxing them out is bad too. Dont carry more than 50% of your allowed balanced.
But really avoid credit cards whenever possible. Act your wage per Dave Ramsey!
2007-01-18 08:45:21 · answer #4 · answered by Ms. Dorsey 3 · 0⤊ 0⤋
Yes - everytime someone pulls your credit report it lowers your rating.
Maxing out your cards increases your debt service ratio (how much of your income goes to paying off debts) which creditors look at on top of credit scores.
2007-01-18 10:56:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, bad thing to do. It shows up on your credit report. Makes your FICO score drop....and maxing out is really bad and will drop the FICO even more. They dont want more than 50% of available credit used ever at one time.
2007-01-19 17:48:05 · answer #6 · answered by Kris 3 · 0⤊ 0⤋
yes, too many inquiries on your credit report can lower your score. having your cards maxed out can hurt it as well. it's recommended that you maintain your credit card balances at no more than half the credit limit
2007-01-18 08:40:52 · answer #7 · answered by Its Y 2 · 1⤊ 0⤋
♥ ♥ yes everytime you apply for credit it appears on your credit report that the company gets....... would most likely make your score go down.....yes maxing out can be bad ♥ ♥
2007-01-18 08:40:35 · answer #8 · answered by Anonymous · 2⤊ 1⤋
Yes, applying for a lot of cards will hurt your score. Each application costs you about 10 points.
Maxing out the cards you have will also cause your score to go down. You should try to never go above 50% and ideally keep it below 30% for it to not really hurt you.
Good luck!
http://www.personalfinance101.org/?utm_source=YH&utm_medium=link
2007-01-18 08:42:49 · answer #9 · answered by personal_finance_101 3 · 0⤊ 0⤋
The problem that I had faced was getting these pre-approved offers. Really, why get them in the first place and have them delivered in your mailbox. Then some crook drives by gets your mail and pretends to be you when filling out these offers. I tear them up in little pieces, write the company requesting to be taken off their mailing list, and return every thing to the company using their business reply envelope. Also, I called and got place on the Opt-out program. I still get a pre-approved offer once a while but not as many as before.
2016-05-24 04:26:01 · answer #10 · answered by Anonymous · 0⤊ 0⤋