Will Making A Credit Application Affect Your Credit Score

Every time that you apply for credit the creditor uses your credit score as a part of the evaluation process. In order to check your credit score the creditor makes a request to the credit bureau for your credit report. Every time that a creditor makes such an enquiry it is recorded on your credit history. The credit score a calculation model gives importance to several factors and information present on your credit report. Out of this the enquiries made by creditors because of a credit application makes up 10% of your credit score. Because it is only 10 per cent enquiries are not going to have a very large effect on your credit score. This is especially true if you have other positive information on your credit report that is positively influencing your credit score.

However every time that you to apply for credit it may make a difference to your credit score and cause it to reduce. The more applications that you make for credit the more will be the drop in your credit score especially if all these applications take place in a short period of time. Applying for credit frequently and in a short putative time represents risk for the lender because it may mean that the consumer is trying to undertake a lot of debt which may result in the payment default in the future.

Even if your credit score is not affected much by the credit applications the future lenders who review your credit report will see where all you have applied for credit and may reject the application based on this fact.