Whenever your credit report is examined, the fact that an inquiry was made is recorded. This happens, for example, when you apply for a new source of credit such as for an unsecured credit card. This is something you should always keep in mind as a part of your debt elimination strategy.
The thing you least want to happen is to give the appearance that you are trying to grab lots of loans or credit at once. Creditors may suspect that you have been rejected by lenders and are applying for several loans in the hopes of finding one that will extend credit to you. Obviously, this would make you a poor credit risk in the eyes of creditors and it could also impact negatively on your credit score.
[ad#ad-2]
Even so, shopping for new credit – once you have a debt elimination plan in progress – can be a wise thing to do. After all, if you can get a new credit card with a small – perhaps even 0% - interest rate for an introductory period, this will save you money that can be applied to paying down your remaining credit card debt. The point is to do this sparingly and strategically so as not to impact your credit rating.
By strategically, we mean that you should make your credit card applications during a short period of time. This way, inquiries made within a few days window will likely be lumped into one inquiry. Then, once you have acquired the new card, wait for a few months before applying for any new credit.