Does anyone know...
If you sign up for a credit card at a store... like Old Navy for example to get the 20% discount or whatever and then immediately cancel it does that hurt your credit score? Just curious...cuz I do that all the time and probably should stop if it's hurting our credit. Ok, thanks have a great weekend! :)
4 comments:
I worked for Credit Attorney for about a year (an attorney's office that helps people raise credit scores) and what I learned is this: each time you apply for a department store credit account, it appears on your report as an "inquiry." It can hurt your score if you have a large number of inquiries in a short period of time. It can appear to potential lenders as though you were looking and looking for credit but never finding it--leading to doubt as to whether or not you have managed your lines of credit well in the past. So in other words, each inquiry might lower your score by a few points, so in small numbers they don't really matter--but if you have a dozen or so, try to reign it in for awhile. If I remember correctly, it takes a few years for inquiries to fall off your credit report on their own.
Heber always tells me not to do it because it hurts our credit score. I am not sure if its true, but He says it shows up for years, so basically what C Tam said, but I know less about it. haha
as long as you are good with a credit card, i.e pay it off as soon as you use it, then why cancel it? if you arent good with credit cards i would say dont do it the 20% isnt worth it!
ITs the same old idea of moderation is best. It improves your score to have some here and there. Esp. if you leave them open and dont cancel them, but like your friend said, if you have to many to fast it hurts it.
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