Do Multiple Credit Applications Work?
As survey by GE Money Home Lending has highlighted a very tricky situation which is developing in the commercial credit markets. While more and more people are being turned down for new credit lines - whether this is mortgages or credit cards - it seems that those who are successful are applying between 4 and 8 times on average. But does this have a detrimental affect on your credit rating?
For many years we have been advised that the more failed credit applications which appear on your credit file the less chance of being successful in the future. So why has is changed over recent months and is this change for the longer term?
Even though very often those who are making multiple applications are deemed to be in the middle class bracket of household income they seem surprised by the fact they may have been refused credit because of the current situation rather than their own circumstances.
This is the group which are making quick fire applications if they are rejected but they seem oblivious to the damage they are doing to their short term credit scores. As the credit rating agencies have stated on a number of occasions it is the number of searches over a period which rings the alarm bells and not necessarily the fact they were rejected.
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