Did You Know That Opening Too Many Credit Cards Can Harm Your Credit? #Shorts

Remember when I told you that closing your credit cards can hurt your credit score? What if I told you that opening too many credit cards can harm your credit score too 😩

Credit inquiries make up 10% of the credit score calculation. Credit inquiries are a request from a financial institution for your credit report information. This happens when you apply for a new credit card or line of credit, get a mortgage, get a car loan, etc. Doing a lot of inquiries can l lower your credit score because it indicates to the bureau that you are financially squeezed & are therefore less likely to pay your debt back.

I’m not saying not to check your credit score or not to apply for credit. In fact, there are hard inquiries and soft inquiries and they impact your credit score differently (let me know if you want a video explaining the difference).

Ultimately, just make sure you’re not doing too many inquiries at once. Did you know this?

Want part 4? Comment below!

xo,
Reni

#credit #creditscores #creditcard

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