Credit is not just a tool, it’s a product. And according to John Ulzheimer, our resident credit expert, being a smart shopper of credit can be just as important as how you use it once you have it. Here are three things you should before you shop for a new card:
1. Every time you fill out an application for a credit card, you’re giving the lender permission to pull your credit report. Sounds innocuous enough, but each time they pull your report, they leave behind a little breadcrumb in the form of a credit inquiry. The more inquiries you have, the higher the chance some lender somewhere sees you as a higher credit risk. Too many inquiries can lower your credit score and hurt you in the long run, Ulzheimer says.