is it true that the more your credit history gets checked?

Question

by potential loan and credit companies, you lose points on your credit score?

what about opening up credit cards? do you lose points from your score on that?

but WHY do you lose points?

Answer 1

There are two types of inquiries on your credit files...A "soft" inquiry is one that is made by credit card companies that are looking for people to give "pre-approved" offers to....These inquires DO NOT affect your credit score at all.

A "hard" inquiry is when you physically fill out an application for new credit. If you fill out too many applications at once, this CAN cause a drop in your credit score.

Answer to your question: No....not unless you specifically filled out an application to give them permission to pull your credit.

Answer 2

Yes. Be very careful about letting creditors check your credit history because it does bring down your score. Opening up a credit card account is a smart move if you are responsible enough to repay it on time. But it will only help your credit if you make your payments on time and keep the balance below your limit.

Answer 3

i can definately give you a great answer for this question. i am in automotive sales, a sales manager at a dealership to be exact. plus my friend is a credit repair specialist. here is the deal. you have 2 types of inquiries on your credit, which is the term used for having your credit checked. you have soft and hard inquiries. soft inquiries are done by car insurance companies or collection companies. then you have hard inquiries or hard hits as they are called. these are the ones that affect your score. a hard hit can lower your score as much as1-3points. give you an example. you have poor to fair credit, hypothetically speaking. you go to an auto dealership to try and buy a car. they shop you with 15 different lenders trying to get you financed. they cant get your loan bought. you just lost between 15-45 points off of your credit score. same goes with applying for credit cards. as far as opening up credit cards that depends on your debt to income ratio and how many accounts you have. always keep your credit cards below 35percent of the max. if you open too many accounts too quickly that will also drop your score. you can go ahead and best answer me now, it doesnt get any better than this.

Answer 4

actually having two credit cards and and two checking accounts is good for your score anymore your score does go down and the more you have your credit checked the more your score goes down as well because the agencies look at taht as your getting ready to spend money, but have two current credit cards shows that you pay your bills

Answer 5

It is true. Your score suffers every time you apply for credit and your credit "worthiness" is evaluated.

Once you are approved and open the card, your score is not dinged again.