How Does too many inquiries affect my Credit Score?
It is often cited that
having too many credit inquiries on your credit history can contribute to a low
credit score. Whilst this is true in the long run and applying for a credit on
a number of occasions over a long period of time can detrimentally affect your
score, a number of inquiries in a short space of time when shopping for the
best interest rates is often recognized by credit scorers and not taken into
consideration as ‘over-inquiring.’Monday, January 25, 2016
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How is Credit Score negatively affected? https://houstonmcmiller.com/home 1-888-883-3013
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How is Credit Score
negatively affected?
Credit score is
calculated on your financial performances over your lifetime. Financial
irresponsibility results in a low credit score; ways to negatively affect this
include too many inquiries for credit, late or non-repayments, large outstanding
loans or overdrafts, a number of high balance credit cards and more.
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Who does Credit Score
matter to?
Credit score matters
the most to two linked parties, the lender and the consumer. To lenders, credit
scores are a way of defining how risky a potential loan or mortgage is;
allowing them to increase the rates or deny service to a risky consumer.
Consumers will find that without a good credit score, they will struggle to
obtain approval or affordable rates on a number of types of credit.
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How is Credit Score
calculated?
Credit score is
calculated using three main values. The calculation first looks at information
on your account and profile (your existing credit, outstanding loans,
overdrafts), it then checks public records for any black marks on you such as
bankruptcies or summons. The third factor is inquiries, both on your part of
applying for loans and credits, and of lenders inquiring as to your credit
score. Modern credit scores are also now calculated taking into account the
credit score of everybody else, to place you in a percentile which can
influence your approval and interest rate.
What is a Credit Score? https://houstonmcmiller.com/home 1-888-883-3013
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What is a Credit
Score?
A credit score,
sometimes called a credit rating, is a calculated ‘measure of risk.’ Calculated
using a number of different factors, your credit score represents the risk
factor that a lender will be assuming when providing you with credit for a
mortgage, loan, credit card etc. Not only will it affect a lender’s decision on
whether or not to offer you credit, but it will also affect the interest rate
they you are given and the amount of money you will pay back.
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