Does Reapplying Help My Chances of Approval?
In the short term, the simple answer is NO. In fact, reapplying time and time again for the same product could actually hurt your credit score. A hard credit inquiry, which happens when a credit decision is being made, will knock your credit score down a few points. Generally, multiple hard inquiries over a short period of time, will be viewed by the credit bureaus as one inquiry since they assume you are comparison shopping…but there is no guarantee. In addition, let’s face it…if your credit is poor, then every point counts. Better to err on the side of caution here and only apply one time for any type of credit where a hard inquiry might occur.
When is it Safe to Apply Again?
Before applying for any type of credit product, it’s important to know what’s in your credit report and to know your credit score. When you inquire about your credit score it does not hurt your credit. Only apply for credit cards and loans where you believe you are likely to be approved. If your credit has vastly improved since you last applied, then it might be safe to try again. Be conservative when applying for loans and credit cards. This goes back to the good and bad spending and borrowing habits we harp on all the time. Improve your credit habits and your credit score will be soon to follow.
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