Don't Make THIS Critical Credit Mistake

Don’t Make THIS Critical Credit Mistake

( – Offers from banks for credit cards with cashback incentives, rewards programs, and 0% temporary rates might overwhelm your physical and virtual mailboxes. Beware! While the perks offered might tempt you to take advantage of applying for accounts, opening multiple credit cards simultaneously can hurt you financially. Here’s why.

  1. Credit Score: Each time someone applies for a credit card, the process generates a hard inquiry on their credit report, which might cause their score to dip. Multiple applications will do even more damage. Although these hits are temporary, they could hurt your chances of acquiring larger loans from the bank.
  2. Danger Signs: As you apply for credit, the lender associated with the card looks at your bureau report, and they will see you asking for lines from multiple sources. That fact could alert them to the possibility you may soon have the ability to fall into debt, making it less likely you can pay your bills.
  1. Spending Spree: If the institutions approve your requests, you could have the means to charge items you can’t afford, plunging you into debt. Instead of tempting yourself with open lines of credit, limiting the amount you can borrow might be best.

Still, as long as you’re responsible with credit cards and pay them off each month, they aren’t necessarily bad. If you want to take advantage of lucrative offers, consider spacing out the requests over time to minimize the hits to your credit score.

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