15. You Make Too Many Credit Inquiries
Multiple credit inquiries in a short period can have a long effect on your record. “Applying for credit too often is problematic for a variety of reasons,” Ulzheimer said.
For starters, unwanted inquiries will appear on your credit report or reports. “That’s where most people believe it ends,” Ulzheimer said. “But the real problem with applying for credit too often is adding a bunch of new accounts to your credit reports, which lowers the average age of your accounts. That metric is actually more valuable than the impact of inquiries.”
How to avoid it: The current credit scoring system allows consumers to shop for similar types of loans, such as auto financing, in a short period of time without the inquiries being reported as multiple applications.
How to fix it: As long as you manage current credit accounts well, your credit score should bounce back within three months of the last inquiry.
