If a credit applicant has opened many new accounts recently, that is a sign that the applicant is very creditworthy. True or False?

A credit applicant opening many new accounts recently is generally not an indication of being creditworthy. In fact, this behavior can signal potential risk to lenders. When someone applies for multiple accounts in a short time frame, it can be interpreted as an attempt to increase available credit or, in some cases, a sign of financial instability. New accounts contribute to a hard inquiry on the applicant's credit report, which can lower their overall credit score temporarily. Therefore, having many recent accounts usually raises red flags for lenders, making them less likely to consider the applicant as creditworthy.

This pattern of behavior suggests that the individual might be attempting to manage financial difficulties, which is contrary to the qualities that make an applicant attractive to lenders. Creditworthiness typically encompasses aspects like a solid credit history, a stable income, and responsible credit management—factors that are not positively reflected by opening numerous new accounts in a brief period.