Store Credit Card Horror Stories - Having Too Many Credit Report Inquiries Can Cost You Big Bucks
Did you know that taking advantage of those "apply for a credit card get 10% off your purchase" offers can cost you big bucks?
Well, they can, and this is why.
You go shopping at Pennys, Marshalls, Nordstroms, and 2 other department stores. Each of them offers you 10% (or more) off your purchase if you apply for their store's credit card.
So you go ahead and apply, and you save $50 to $75 on your purchases -- depending on the percentage in savings you were offered. Cool, right?
Well... not exactly. Because now there will be 5 different credit report inquiries made with your name on them.
These 5 credit report inquiries are going to count against you and will ultimately lower your credit score.
Having too many credit report inquiries is considered bad by the credit reporting agencies and they will lower your score because of it. A lower credit score indicates that you are not as good -- in terms of credit risk -- as you may have been before.
So, if you were to apply for a loan, then you most likely would not get the best rate due to your lowered credit scores.
Want to keep an eye on your credit report for free? Check out Can You Really Get A Credit Report For Free? (Hint: the answer is "Yes you can!")
