Credit Tips: Tips on Establishing Credit

Posted On: August 30, 2006

Author: froggger
Posted: Wed Aug 30, 2006 2:58 pm
Post subject: Establishing credit

I am new to this forum and find that it is most informative. I do have a question though. My score is 600 EQ, and all I have on my credit report is my mortgage now for 11 months, never late. There is one collection but it is paid since May. It does not say paid but I am working on correcting that. Also, I applied for Target credit (not the Visa) and got a 200 limit. I receive credit card offers everyday in the mail and am curious if I should apply. I’m scared that if I apply and am denied, I will lower my barely existent score. Any suggestions?

Author: rapjunkie
Posted: Wed Aug 30, 2006 4:16 pm
Post subject:

Inquiries do not lower your score much, and your score may in fact go up if you are approved for a new card since your total available credit will be higher, and your utilization percentage lower.
You do not need to worry about a denial of credit lowering your score - it’s not the denial but the inquiry that has an effect. So go ahead and apply for one… you don’t really have anything to lose.