Why do hard pulls on your credit make it go down?
In: 31
As with most things credit score related it’s based on historical, empirical data.
The behavior being watched for in this case is “credit seeking”. Imagine you are in deep and are spiraling around the drain, and you’re pretty sure you’re going to declare bankruptcy in a few months. If you’re ethically challenged you might get as much unsecured credit as possible from as many lenders as possible, all in the same month so those new accounts don’t show up in the credit checks being done. You might then spend all that available credit knowing you’re writing it off in the near future.
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