Hey Everyone!
Hope you are all having a great week. I have spent the past few days reading and viewing various blogs and forums about credit and credit cards.
I found one guy who was asking a question about credit cards that I thought I would answer here. He was saying that he had a credit card already and wanted to apply for another one or two and how it would affect his credit score if he applied for more than one offer.
He said he had a credit score of about 700-715 which is actually a decent score. He was asking if he applied for several cards, if I recall correctly was like 10 offers, would this affect his score much.
If he was applying for a mortgage or an auto loan, he could apply for more than one finance company and only be dinged with one inquiry during a fourteen day period. With credit card offers, this rule does not apply!
If he applies for more than one offer or application, he will get dinged for each one he submits. Thus, getting several inquiries on his credit file which will bring down his FICO scores tremendously.
If he really needs another card, he should only apply for the one that has the best offer for his personal budget and circumstances. With a score as high as he has, he should not have a problem applying and getting approved for another card.
If he was to apply for all the offers he was talking about, each inquiry would show up almost instantly on his credit reports. Especially, if he applied online with the various banks or finance companies. This would bring his scores down a lot.
My advice to anyone wanting to do something like that, is not to even attempt it at all. We all want to be improving our FICO scores as much as possible and not bringing them down. Since most banks and other institutions use these scores to evaluate us as to whether we can afford something or not and whether we get approved or not.
If you have any issues or concerns you would like me to address here on my blog, just let me know.
Till next time,
Michael
Tuesday, August 12, 2008
Friday, August 1, 2008
How Often To Check Your Credit Reports
Hi Everyone!
I had a question asked about how often we need to check our credit reports. I have personally asked a few people this same question and the responses I got was, "I haven't checked lately", "Why do I need to check my credit reports?", "What is my credit report?". These responses blew me away!
For what it is worth to you guys, you need to check your credit reports at least once a year and better yet, twice a year. The purpose for doing so is twofold. One, you can check to see if there is any inaccurate info on them and two, to check to see if your identity has been compromised!
If you find inaccurate info on any of your reports, you will need to dispute it. All the bureau's send you a sheet on how to go about disputing the incorrect info by mail, if you get your reports by mail.
If you get your reports online at http://www.annualcreditreport.com, where you can get them once a year without cost, they have a section on their website to guide you through the process of disputing any inaccurate info you may find.
If you opt to get your reports a second time, you will need to pay for them. The cost is in the forty to fifty dollar range. The best and most accurate place to get your reports is at, www.MyFico.com/12. The reason for the "/12" at the end of the web address is so you will also get what they call "negative reason codes" you will also get all three of your FICO scores along with your three bureau reports.
The negative reason codes will tell you how your accounts have performed since opening and how they effect your FICO score, especially if you have had credit problems in the past.
Whatever you guys do, do not, I repeat, DO NOT fall for those ads on the web for free credit reports. They do not give you accurate and true report information. Don't waste your time on them.
If any of you are looking for new credit card offers, you can go to http://www.trustedcreditcards.us/ to find one that fits your budget and needs. I would only do this after checking your credit scores to make sure your near or above the "700" mark. That way you'll know that you may get the approval you seek.
Any comments or more questions you may have, just post them below.
Have a great week! :)
Michael
I had a question asked about how often we need to check our credit reports. I have personally asked a few people this same question and the responses I got was, "I haven't checked lately", "Why do I need to check my credit reports?", "What is my credit report?". These responses blew me away!
For what it is worth to you guys, you need to check your credit reports at least once a year and better yet, twice a year. The purpose for doing so is twofold. One, you can check to see if there is any inaccurate info on them and two, to check to see if your identity has been compromised!
If you find inaccurate info on any of your reports, you will need to dispute it. All the bureau's send you a sheet on how to go about disputing the incorrect info by mail, if you get your reports by mail.
If you get your reports online at http://www.annualcreditreport.com, where you can get them once a year without cost, they have a section on their website to guide you through the process of disputing any inaccurate info you may find.
If you opt to get your reports a second time, you will need to pay for them. The cost is in the forty to fifty dollar range. The best and most accurate place to get your reports is at, www.MyFico.com/12. The reason for the "/12" at the end of the web address is so you will also get what they call "negative reason codes" you will also get all three of your FICO scores along with your three bureau reports.
The negative reason codes will tell you how your accounts have performed since opening and how they effect your FICO score, especially if you have had credit problems in the past.
Whatever you guys do, do not, I repeat, DO NOT fall for those ads on the web for free credit reports. They do not give you accurate and true report information. Don't waste your time on them.
If any of you are looking for new credit card offers, you can go to http://www.trustedcreditcards.us/ to find one that fits your budget and needs. I would only do this after checking your credit scores to make sure your near or above the "700" mark. That way you'll know that you may get the approval you seek.
Any comments or more questions you may have, just post them below.
Have a great week! :)
Michael
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