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Balancing responding to credit card offers with concerns over credit rating
Dear Lucky, In one of your intro essays you state:
“I pick up 2-3 cards every three months or so, so I’m constantly on the look out for the best sign-up bonuses. [B]I earn upwards of 500,000 points each year from credit card sign-ups alone[/B], so taking advantage of the best offers is key for me.”
However, as someone with a high credit rating, who would like to maintain that rating, I wonder about the tactic of applying for new credit cards. Each application for a card typically means an investigation of one’s credit, and I know from experience that credit inquiries have (at least temporarily) lowered my rating.
For example, I spent an interim year in a rental apartment after selling my place while I looked for a new place to buy. The rental agency ran a credit report on me, and my rating dipped by about 10 points. I think it took several months for my rating to regain those points. I’m uncomfortable at the idea of applying for 10 credit cards a year; I do not know how long it would take for my credit rating to rebound — or even if my rating might be permanently dinged for such practices.
Any comments (from Lucky, or fellow travelers)?
Thanks,
Liz
[USER=1316]@Liz90909[/USER] consistently following this process will actually raise your credit score. This primer provides a good place to start:
[URL]http://onemileatatime.boardingarea.com/credit-cards-credit-scores/[/URL]
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