Most people when offered to get another credit card agree to take the offer.
A lot of people think it's a good thing as far as their credit rating is concerned.
Fast forward, when they receive their credit reports, they are shocked at the score they have been given.
To no surprise all those credit cards they have been applying for are actually working against them rather then helping their credit ratings.
You see there is something called a hard check and a soft check.
Whenever you go and apply for credit or anything related to credit, they person taking your application might ask you to sign a form.
That form basically grants the company permission to go into your credit, take a full thorough look and analyze everything about it in detail.
This is known as hard check and on average 5-10 points is taken away from your credit rating for each hard check.
So now think about all those times you applied for credit cards, whether it is at shopping mall, a furniture store or wherever, this is where all your points went.
So then what is a soft check? Simply, it's the opposite of a hard check.
The firm does not require your permission to perform a soft check as it only gives the firm the title page of your credit report and nothing more.
This still takes away your points and again you agree for this to take place when you initially sign of on your credit application in the beginning.
Overall, you must educate yourself on these types of credit terms so you can increase your score rather then decrease it.
All of us should be striving to increase our credit score every single day.
We should try to implement different methods in order to gain a higher score then last month.
This can only be done as long we make an effort to gain the financial freedom we want.