Credit scoring models tend to judge new credit as negative until you have proven you can pay the bills. Many scoring models consider whether you have applied for credit recently by looking at inquiries on your credit report. However, your score will not be penalized if you're hunting for an auto loan or a mortgage within a short time frame. However, you should be aware that your credit report may be affected if you send a pre-approved offer in. Avoid holding to many credit cards, and loans from finance companies.
Lenders tend to prefer a mix of debt beyond credit cards, including car loans and mortgages.
This can show a consumer's ability to manage their money well. Consumers wishing to protect their credit and guard against credit denial should follow the following guidelines in keeping their credit in good standing. Review your credit report. Upon receiving your report, make sure it is accurate and includes only those activities you authorized. Consider getting your credit score.