Page 57 - Winning The Credit Game Bundle (CK Patrick)

CHAPTER 7
NEW CREDIT

WE MENTIONED EARLIER that coaches may be worried about hiring a
player who seems overcommitted. If a player has just recently started
playing for three new teams, how can you as a coach know that they
will be able to keep up with all of those game schedules? You might
also ask whether they’re taking on so many contracts because they’re
struggling to pay their bills.
The same is true when it comes to opening new credit accounts.
This is the reason why hard inquiries harm your credit score. Hard
inquiries occur when a credit card company or potential lender reports
to a credit bureau that you have asked for a new line of credit.
If you only do this once in a while, the benefits of having that new
line of credit added to your credit history will probably outweigh the
cost of the inquiry; but if you apply to many credit cards or lenders in a
short span of time those hard inquiries can harm your credit score in a
big way. And here’s why.
Applying to many credit cards and lenders may be seen by credit
bureaus that you’re taking on more debt than you can manage. If you
plan to start paying multiple loans and credit card bills at the same
time—well, what are the chances that you will be successful in
winning so many games for teams you’re not used to playing for?