Why is my credit rating affected ?

When I apply for other credit cards or my credit is checked by a company that I'm buying something from?Why does that happen.If I am making my payments on time,why am I penalized.? I doesn't seem fair.

Why is my credit rating affected ?
The effect is short term, and it gose on the assumption that you actually accepted X amount of credit, and therefore have less available to you.





When credit is checked by employeers it does not effect your credit rating, as they are not applying for credit they are looking into your habits.
Reply:When there are a lot of inquiries on your credit they think that you are shopping for credit. Basically everything is handled by computers and they don't enter enough information for the system to differentiate between an employer looking at your credit for purposes of a job change ( which by the way could be interpreted as a bad thing since it might screw up your ability to pay on time since you are changing jobs and you might have lost your last job!) and a store looking at your credit because you applied for a credit card.


That is why when I'm at a new store and they offer me a 5 or 10% discount if I take out a new a credit card unless I'm buying something really expensive, I tell then 'no thank you'


Its just not worth the ding on my credit profile.
Reply:It suc- - - I know we just went thru that to build a house.
Reply:it is only about an 1/8 of a point and the only time it really effects it is when you are applying a lot and then it lowers the score beacuse the impression is you are trying to get a lot of open lines to have more debt.


The scoring system is flawed- and unfortunately silly things are taken into account like that