If you have just recently applied for a loan, you may be wondering how long you should wait before applying for another. Whether you were approved for the loan or your application was denied, the amount of inquiries by potential lenders on your credit report will affect your credit score. Too many inquiries in a short period of time can make your credit score plummet. As a result, you won’t be able to get approved for any loans or credit cards until these inquiries fall off your file.
So, how long should you wait between applications for loans or credit cards? The general consensus amongfinancial professionals is that a minimum of six months of time should pass between applications. This gives the first inquiry time to fade away into the recesses of your credit report. It also gives your credit score time to bump up by at least a few points. During this time, you should also focus on improving your payment history on any existing accounts. You should also work on reducing balances on existing loans and credit cards, as these things also factor into your credit score. By taking your time and doing things right, you will not only improve your credit score, but you will make yourself more desirable to potential lenders.
If you are looking to build your credit and obtain a loan, CRE Credit Services can help. Our staff of financial professionals will speak with you and go over your credit history and your goals. We will then make recommendations on the next steps you can take to improve your credit score and qualify for better lending opportunities. Your first visit is free of charge and free of obligation. You have nothing to lose by contacting us, so call today!