Think back to all of the times you went out shopping for items



like a new car, cell phone, home, apartment or insurance

company. Each of these companies probably pulled your credit

report and took a few points off of your credit score at the

same time.

Although most credit inquiries take less than five points each

time, this can still add up- especially if you have more than

a few inquiries. Losing points on your credit score can cost

you a lot of money over the years because you'll end up paying

higher interest rates and annual fees.

If you're out shopping for cars and have applied at a few

different dealerships in a two-week span, you don't have to

worry about your credit score dropping each time. You should

only get up to a five point deduction because credit bureaus

will count all inquiries in this time frame as one. But if

you're out shopping in a two week span for unrelated items-

say a new car and an apartment- credit scoring will be

affected with each inquiry.

Credit scoring is not affected at all if you are making

inquiry as to where you stand. Whenever you order reports

or request your one free copy per year, no points are taken

off your credit score. You are not penalized for wanting to

know what your credit history looks like, so take advantage

of this. You should always know what your credit score is

because it will give you a better idea of your chances for

credit and loan approval. It will also alert you to fraud or

any potential mistakes listed on your credit report if you

experience a sudden point drop for reasons unknown to you.

Credit inquiries will remain on your credit report for up

to two years. After this time period has passed, you can

request they be removed. You can contact each of the three

major credit bureaus- Equifax, Experian and TransUnion- to

have this done.

To keep your credit in good standing, pay your bills

religiously each month, keep your balances down and keep your

credit inquiries to a minimum. Doing so will ensure lenders

view you as someone they would be glad to do business with,

rather than a huge credit risk.

Article written by Dennis T. Cary.