Multiple Credit Card Applications Damage Credit Score?
Saturday, October 21st, 2006An article that I read recently said that “Over 2 million UK consumers have damaged their credit rating by applying for multiple credit cards after being at first refused, a new report from moneysupermarket shows.”
The real problem in continually re-applying for any type of credit lies in a consumers credit score. Every application for a credit card is recorded in a persons credit score in addition to any refusals for credit. Credit card companies and banks check the applicants credit score or rating to see if they have had any refusals in the past. This information is then analysed and the credit card company decides whether to offer a credit card and at which APR. The typical APR of a credit card that is advertised is not always offered to an applicant. In many circumstances the APR could be much more depending on the persons credit score.
I guess the solution to this is “smart applying”. By smart applying I mean, research the credit card that you want to apply for (never hurts to read the terms and conditions, does it?). Make sure you qualify for the credit card before submitting that application. People with less than perfect credit should pause and think twice before applying for a credit card that states that it requires excellent credit.
