Consumer Watch: Good credit scores don't save you from credit problems
OKLAHOMA CITY (KOKH) —
A good credit score does not guarantee getting approved for a new credit card. Getting denied for a line of credit hurts, and not just our feelings. It can hurt your credit score if you've applied and been denied for too many lines of credit. An Oklahoma City financial expert tells Fox 25 Consumer Watch what could be holding you back.
Credit scores are those all important number used to buy things some major items like cars and houses. Most Americans depend on lines of credit at some point in their lives. Messing up and tanking your credit score will limit possibilities.
If you were recently denied for a credit line, the score could be a problem. With a low credit score, you will likely only be able to have a secure credit card. A fee will get you the card, and help your score, if you make payments on time. Whether a consumer as a bad, average or good score, payment history affects your success.
“One of the biggest factors of determinants of your score would be payment history. If you have a history of making late payments that is a good reason why you might be denied,” says Ted Hughes, Hughes Warren Inc, co-president.
Even people with an excellent credit score get will get denied, and often stretched thin credit lines do have a negative effect even if you’re making minimum payments on time.
“If you have 10 credit cards and they are all maxed out, that is really going to hurt your score and would be a reason why you might be denied,” says Hughes.
The solutions in this case are twofold-- the best thing to do is pay down that debt, but people with a good score could ask their creditor to extend their line of credit. However, Hughes is quick to point out that doesn't mean you need to go out and spend more.
Applying for too many different credit cards within a short period of time can also cause a person with a good score to be denied a line of credit.
Often having more than five hard credit inquires will hit your credit score, and bring the number down for a time. Hard credit inquires will stay on your credit report for two years.