9 Ways To Get Cash From Banks and Credit Cards

7) Limit Credit Card Applications

It’s easy to draw the conclusion that the more credit cards you have, the faster you can boost your credit score if you’re paying the balances on time. Don’t fall into this trap! Every time you apply for a credit card – or any credit for that matter (car loan, student loan, etc.), the lender checks your credit report. This “hard” inquiry is reflected on your report. If you apply multiple times, each inquiry is recorded. These “checks” show that you’ve applied for credit and can affect your overall score between 5 and 10 points. This is a small number, but it could make a difference if you sit on the borderline of two credit score levels. This doesn’t mean you can’t apply for credit cards. Just refrain from applying for multiple in a short period of time and avoid the negative consequence of a score reduction.