(55) Limit Credit Inquiries on Your Credit Report

Often when debt begins to close in on a person the tendency is to seek out new sources of credit as a backup, which means typically applying for every credit card offer that can be found. Don’t do it if you can possibly avoid it because it can and will hurt your credit score. When the three credit reporting agencies look at your credit report to come up with a credit score or FICO Score, they give the following weight to these items:
1. 30 percent weight is given to money you owe right now, based on your credit report.
2. 35 percent is based on your payment history…were you on time with all of your payments?
3. 10 percent weight is given to the credit you have in use.
4. 15 percent weight is given to the length of your credit history
5. 10 percent weight is given for new credit you have obtained.
The scorers of your credit also take into account the number of financial institutions seeking your credit report, a credit inquiry. It raises concerns. Are you seeking additional credit, if so, how much. Are you having problems paying and is that why they are doing a credit inquiry? Overall, it hurts your credit score.

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