New Credit And Credit Scores: Part Five Insights

Applying for new financing can impact your FICO credit scores, as new credit inquiries account for 10% of the score. Inquiries are recorded when credit reports are accessed, with hard inquiries potentially affecting scores. Hard inquiries only impact scores for 12 months. The number of new accounts, recent inquiries, and time since the last account opening are considered in the 'New Credit' category. Checking your own credit is a soft inquiry and doesn't affect scores, so you shouldn't be deterred from applying for new credit when needed, but avoid excessive applications.