Don't Let Your Credit Application Ruin Your Credit


by Donny Lowy - Date: 2007-03-21 - Word Count: 295 Share This!

Are Too Many Credit Applications Bad for Your Credit Rating?

Even if you manage your money wisely, too many credit applications can have an adverse effect on your credit rating, especially if you are making these within a relatively short period of time. This doesn't happen only to you. You should know that there are many people who do this as they are seduced by the many good offers which they perceive at any given time as all the card companies try to compete for additional business. Nevertheless, applying for multiple cards within a short time span does impact negatively upon your credit rating so it's wiser to do your homework on the comparison sites and stick to only making one or two applications in quick succession. You should wait a few months between applying for alternative sources of credit, including mortgages, loans, store cards as well as credit cards an even a mobile phone application.

Remember that whenever you make an application for any kind of credit, a 'footprint' is added to your file. This notification is then visible to the next provider that comes to look at your file as a result of another application for credit. From that you can see your credit history, what other credit cards and financial obligations you have, what the limit of the credit is on each and what the balances are and you can also be checked on whether or not you pay off your cards in full each month or if you are simply making the minimum repayments. Therefore, if you are making applications for credit in rapid succession, you could be considered more of a higher risk and you may not get offered the preferential rate you'd bargained for which they can offer to other customers.


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