Hi all,
I have a question about applying for credit cards.
We see it every where, get this free item just for applying for this credit card. I know that goes on your credit report as an inquiry, and stays there for 2yrs and lowers your credit score, does that happen even if you are not denied the card? Does that happen whether you have good credit or not?
I appreciate it,
Lisa

It doesn't make a difference whether or not you have good credit and whether or not you are denied. I'm not sure, but you might be allowed a few inquiries per year without it making a difference, but I know for sure that more than a few will lower your score. Store cards are supposed to lower your score the most. I avoid having my credit pulled unless absolutely necessecary (spelling problem again... sorry).

Yes inquiries affect your credit. An inquiry happens when you apply for a loan. Applying for a loan is grounds to pull credit.

How many? I am still not 100% sure but I know someone I can get an answer on this from. I will post the info when I hear back.

I believe 4x per year max.

Thanks Greg, I appreciate you getting back to me

this is a difficult question that all depends on the strenght of you exisiting report.

WHERE TO FOCUS: SCORING FACTORS
* 35% LATE PAYMENTS, COLLECTIONS, BANKRUPTCIES AND PAST DUES.
* 30% OUTSTANDING DEBT- UTILIZATION OF CREDIT. NEVER USE MORE THAN 30% OF AVAILABLE CREDIT.
*15% LENGTH OF CREDIT HISTORY.
*10% TYPES OF CREDIT. FINANCE COMPANY TRADES WILL AFFECT SCORE MORE HEAVILY THAN A BANKCARD.
*10%- INQUIRES

Hope this helps
----------------------------------
James Keely
Dir Of Operations
Florida Mutual Mortgage
http://www.zerodownflorida.com

It does help, thanks James

You can opt out of credit card offers. I believe you go to www.optoutprescreen.com. Someone told me that this can dramatically improve credit scores for low scoring clients.

it's always a good thing to opt-out. this WILL NOT help your credit scores though. when a company solicits you for a credit card, they have been givin a range of scores by transunion, equifax and experian. it does not count as an inquiry unless for fill out the application and submitt.

the fine folks at the credit repositories are even selling your info to other brokers if you have applied for a mortgage.
-------------------------
James Keely
Director Of Operations
Florida Mutual Mortgage
http://www.zerodownflorida.com

There's 2 types of inquiry: Soft and Hard.

Soft is when you get those unexpected mailers saying that you qualified for a credit card. You never had applied for one but somehow you received an offer for one. These companies received your information from the bureaus and sent you an offer. Basically, they were lurking and thought you'd be a candidate. Their lurking = Soft Inquiry.

Hard is when you actually had applied for the credit card; this can be a Visa, Macy's, Target, etc. When you've actually applied for anything that has to do with credit = Hard Inquiry.

This is basically the model of the FICO score:

35% of the score is based on PAYMENT HISTORY
How recent- this the most important
How late the payment is. Negative weight is given (in this order:
30, 60 and 90 day lates)

30% of the score is based on BALANCES OF CREDIT
These are heavily weighted on revolving cards
If you have more than 50% of your limit, there is a hit
If you have more than 75% of your limit, there is a harder hit.
You earn more with smaller balances than with a zero balance

15% is based on your CREDIT HISTORY
The older the trade line, the positive weight
Ideally, they are looking for 3 – 5 trade lines
Ideally, 30 years is the perfect length of time to have a credit card
They divide the number of cards by the length of time
(Every time you open a card, it drops your score)

10% is based on the TYPE OF CREDIT
They are counting the number of trade lines in each category
A mix is best
They are keeping track of all accounts: open, closed & frequency
Installments through finance companies can hurt your credit
(This is something you have in common with late payers)

10% is based on the NUMBER OF INQUIRIES
There are parameters: it only goes back 12 months
Negative weight is given to: what kind, how often
The weaker your credit ability, the more negative impact per pull
Pulls of the same category count as one for 30 days.

Hope that Helps,

Actually it has been found it does help credit scores by 7-10 points because the bureau says by opting out you will not be as likely to take advantage of an offer that you do not get.

I have no way to confirm this with the credit bureau score card but people have opted out, waited 5 days, then re-pulled and had a higher score and 0 updates on tradelines.

I like the report breakdowns. Very good information and accurate.

Credit inquries will affect your score whether you get the loan/credit or not. How many you are allowed within the same 30 days...I have heard 4, but I'm not 100% sure.

Inquiries will negatively impact your score for up to six months and will remain on your report for up to 2 yrs.