Quote Originally Posted by auld argonian View Post
...I have heard that running excessive checks can actually bring your score down and that this was one of the reasons why you politely decline those store offers "...would you like to save 10 per cent on this purchase by opening a credit card account today?" Hopefully, one check won't affect things....
We can get into details and a long discussion on specifics, but I wanted to answer a quick fact.

Every time your credit file is accessed, the FCRA (Fair Credit Reporting Act) requires the credit bureau to record the event and report it on your credit report for two years, and to recorded the name of the creditor and the purpose for the pull (line of credit, credit card or loan, etc). These are called HARD pulls. They are HARD because they are visible to any creditor who accesses you credit report. The fewer PULLS , or "inquiries' you have, the better as each and every hard pull drops your overall credit score by 2-10 points. To get the best possible score you should have no more than two pulls per year. The more pulls, the more desperate for credit (or the potential for over extension of credit), the higher the risk, thus the lower credit score.

Well you ask, what about when you buy a home or car, there can be dozens of inquires or pulls - doesn’t' this sink my credit score? - Actually no, the credit score software (FICO) calculates that the purpose is a car or home loan, and all inquires for that purpose within a two week time frame count as only one inquiry.

Now there are also SOFT pulls, which are only visible to you when you obtain a copy of your credit report and have absolutely no impact on your score. These soft pulls are such things as existing creditors doing an account review (raising your limit, etc) and they want to see how you have been handling your credit since you first stated doing business with them). American Express is famous for canceling or suspending cards if you start getting into trouble with your credit (late pays on other cards, missed payments on other loans, etc. - this is perfectly legal, check your T&C info). These are also those pre-approved offers you get in the mail, etc.

Bottom line is that YES, you can impact your score by just applying for credit. Only apply for what you need, when you need it.

Note: I do a LOT of credit repair / clean up / debt reduction and settlement advice for people - I do not charge any fees - I am not a lawyer and do not provide legal advice - I only provide educated opinions based on results from personal experience, education and research in this area for those who ask.

Brian