New Debt- The 10% Rule

Accumulation of new debt accounts for 10% of your total credit score.?This aspect of the credit score is comprised of how much new debt you may be applying for.?It takes into consideration how many accounts you currently have open, how long it has been since you opened a new account, and how many requests they have for new credit within a 12 month time period.

If you go out today and apply for credit, that creditor requests information from the credit bureaus. This counts as an inquiry on your report.?If you have a lot of inquiries in a short period of time, your scores will be impacted.

If you apply for a mortgage today your scores might drop one point.?But if you apply for a car, a mortgage, and a few credit cards this week, your scores could drop significantly.?Any large groupings of inquiries on a report can and will lower the credit score.

So to prepare yourself, be sure to never apply for numerous credit lines within a short period of time.?You should also monitor your credit reports for inquiries and dispute any that you are not familiar with or that you feel should be removed.

We at Credit Right Services look forward to helping you achieve your goals, and provide better opportunities for you and your family. Give us a call. We are standing by, ready to help!