|
|
|
I have heard that if my credit report shows too many credit card company requests within one year that I will be turned down for new credit cards. I have also read that I can request credit card issuers not to run a credit report on myself--so that my credit report will not show that I have applied for several credit cards in a short period of time, and thus I would be extended credit by new credit agencies. I thought all credit card companies would only issue credit if they first run a credit report on the applicant. Is this true, or do the companies automatically run a credit report on the applicant every time a balance transfer request is made?
--Gail
Gail,
Thanks for writing!
You're being very DebtSmart® by transferring your balances to lower rates. Zero is always the best rate! Right now I have four cards offering me 0% for one year! Actually, I just got a fifth offer yesterday that I will also take advantage of to see if there are any tricks.
You can continue to transfer your balances to lower cards in perpetuity! My experience is certain proof of that result. I have been transferring my balances to low rate deals for over a decade. About 6 years ago I was told that these deals would end however, they've only gotten more frequent.
Last year credit card companies mailed 5 billion credit offers! That's up from 3 billion in the year 2000. I doubt it's going to be slowing down anytime soon. And because of that fact the consumer is in control! We have the power to decide which banks we spend our money on to buy their money.
It is true that when you apply for credit the bank looks at how many credit-inquires are shown on your credit report. The more inquires the more negatively it could, and I must stress, could, be in giving you the new credit line. Just because you have many inquires doesn't mean you're going to get turned down for new credit. Each bank has it's own criteria for determining who and how much credit to allow.
By the way, your current creditors also take a look at your credit from time to time. This too shows up as an inquiry to your credit report. I have a dozen inquires on my report and it has never stopped me from getting new credit.
Most importantly is that you have paid on time. Don't be late! That's is what will hurt your chances in the greatest way. Of course, judgments and repossessions don't help as well.
If you do get rejected for credit always remember to request a copy of your credit report. You should always request a copy of your credit report from the credit reporting agency that supplied that data to the creditor that rejected your application. And you get this report for free if you request it within 60 days of being rejected. Be sure to review that report for errors and dispute inaccurate information.
You cannot request that a bank does not look at your credit file. Well, I guess you could make that request but they would say, "okay we won't look but you won't be receiving any credit from us."
I doubt it's a standard for banks to review your credit report prior to completing a balance transfer on an existing account. However, they have probably warned you in their account terms that they can look at your credit report at anytime.
The bottom line here is that: 1) It's smart to transfer your balances to lower rates 2) Credit inquires may or may not hurt you depending on each banks criteria. 3) If you are rejected for credit always get a copy of your report and check it for error. And take a look at all the credit inquires.
Good luck!
Regards, Scott
About The Author: Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!
By
06/08/2010
I only have one credit card, when my interest went form 7% to 14% I had a fit. I called the company did not get anywhere, their reply was it was happening to all their cusomers. This recently happened. What I am doing now is sending 2 payments a month, I feel I will be shortening the length of my interest rate Anne
By
03/26/2008
I have read that some credit card companies will up the apr when they find out that you have more than one credit card too so watch out for that.
By
05/12/2005
Transfer your balance from an interest bearing credit card to a new 0% card you get through the mail. It will save you a lot of interest. Just make sure there is not a fee for the transfer.
By Kim
By Colleen (Guest Post)
07/22/2004
I've been playing this game for a while, and our balances are gradually going down. There are a couple of things to watch out for. Many cards charge a balance transfer fee. Sometimes this is waived when you first open the card. The fee on most of my existing accounts is 3%, but some have a maxiumum per transaction of $50. Know your maximum and mimimum fees. Also, you cannot transfer between two accounts owned by the same lending institution. The name on the card is not necessarily the owner of the account. I recently applied for a card with 0% for one year and no balance transfer fee for transfers done within the first year. (this was an AT&T mastercard) The credit limit they gave me was good, but not large enough. Turns out it's owned by a company I had another card with that currently had a 0 balance. They offered to combine my credit lines. Now, everything we owe is on one card. So, know who owns your credit cards. Also, in the past, I have had luck with some cards that I hadn't used for a while sending me 0% offers. This is nice because you don't have to open a new card
Like ThriftyFun on Facebook
