 TITLE: How Applying for Credit Impacts Your Credit Score CONTENT: How to Minimize the Effect on Your Credit Score When Applying for New Credit\n----------------------------------------------------------------------------\nWhen applying for new credit, there are a few things you can do to reduce the impact of a hard inquiry on your credit score. First, you should take advantage of the rate shopping exception for multiple hard inquiries. With the FICO scoring model, multiple inquiries on the same type of loan made within 45 days are typically treated as a single one, reducing their effect on your score. This is the case for auto loans, home loans and student loans, but it doesn't apply to other forms of credit.\nIt's also important to monitor your credit reports to see how these new inquiries are affecting your credit history. Experian offers a free credit report every 30 days when you sign in, or you can receive one free copy of your credit reports from each of the three bureaus annually at AnnualCreditReport.com. Keeping an eye on your credit reports and scores will help you understand how new credit applications can affect your credit—and give you insight into all the factors that go into creating your credit history. END