 Credit Issues: What You Need to KnowShopping for Rates Could Harm your Credit ScoreShopping for credit online can have serious hazards to your credit report. Every time you shop for a loan it results in a credit inquiry. Those individual inquiries can reduce your credit score. Credit scores range from 300 to 900 with 900 being best. Each time you apply for credit, your credit reports will place an inquiry at the bottom of your reports. While a few inquiries are fine, too many can result in lowering your credit score and denial of credit. NOTE: To inquire about a loan without having your credit pulled, try LoanQuery, the quick and easy way to ask questions before you apply for a mortgage loan.Creditors or potential lenders look at too many inquiries as "desperate" and base part of their credit decision on those excessive inquiries. In addition, the potential creditor has no idea that those inquiries have not resulted in a recent loan which could disqualify you from being approved. The good news, however, is that scoring models have now been adjusted to count multiple inquiries within a 14-day period as a single request. Too many inquiries seems to be the topic of the day with consumers. Many don't realize the impact of too many inquiries and only begin to understand the affects after being turned down for loans because of it. |
