Credit reports Maryland

A credit inquiry occurs every time you apply for a credit account.  When you apply for credit reports Maryland credit, you authorize creditors to ask or inquire for a copy of your credit report from the major credit bureaus. Whether you are denied or approved for the credit account does not matter.

But what does matter is the type of inquiry.  Different types of accounts affect your credit score in different ways and the length between inquires is also credit reports Maryland of great importance.  credit reports Maryland With all of the ways that a credit inquiry can affect your credit score, lets define a few key terms and see just how much your score can drop when you are looking for new credit. free credit report a year

First, lets clarify the difference between a soft credit pull and a hard credit pull, as we will be discussing how a hard credit pull affects your account. Next, its important to understand that not all hard pulls on your credit report are created equal. For example, applying for multiple revolving accounts such as credit reports Maryland credit cards in a short period of time represents greater credit risk under the FICO scoring system. Because applying for multiple accounts is viewed as a credit risk, it will negatively impact your credit score. free credit report by mail As an aside, some have used Credit Card Arbitrage to avoid the immediate sting of hard pulls on their credit score. The idea behind credit card arbitrage is that you can apply for a lot of credit cards within a short amount of time to take advantage of no interest introductory offers or sign-up bonuses.

If you apply for many cards at the same time, the credit card issuers will not see the negative impact of all the inquiries when they evaluate your application. Your score will be negatively impacted once the credit inquires appear on your report, but not before decisions have been made on the credit card applications.

While applying for multiple credit card accounts in a short time period can hurt your credit score, rate credit reports Maryland shopping for other types of credit is different. credit report free gov For example, you may submit multiple credit applications when shopping credit reports Maryland for a mortgage, car loan or student loan.