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Wait a minute - does this mean that a person's
credit rating is lowered just by a bank
looking up their credit rating before
making a loan?



That sounds like having your grade point average
lowered if the college checks your grades
before admitting you.

Can anyone explain this?

Looking for new credit is a risk factor. People who are nearing the end of their financial rope will start aquiring new credit to try to stay above water.

So yes, looking for a new line of credit lowers you score a little. Looking for lots of credit in a very short time really drops it like a rock.

It's pure statistics.
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