Limiting your credit inquiries

A credit inquiry is reported any time you apply for new credit.  When you go out there and apply for a number of credit items, it decreases your score because it essentially says you are trying to add more items to your credit profile that have to potential for you to default on.

This is an easy way to improve your score.  For instance, if you know you will be applying for a new mortgage for your new home purchase 3 months from now, hold off on any other credit inquiries until the mortgage company pulls your credit report.  This will insure that your credit score is at the highest rating when they pull it, because generally new inquiries only stay on your report for about 90 days.