This is a misconception based on the truth.
Hard inquiries — when a creditor looks up your credit score for purposes of offering or denying you credit — are recorded on your credit report. The pattern of your inquiries over the past 12 months impacts about 10% of your FICO® credit score. Since many inquiries might indicate you’re in dire need of credit and thus suffering financial hardship, it can reduce your score by a few points.
However, a cluster of inquiries for a car loan, mortgage, or student loan at around the same time count only as one inquiry when calculating your credit score. Lenders understand shopping around for credit when making a significant purchase is the sign of a smart consumer, not a desperate shopper.
On the topic of credit, it’s a good idea to pull your credit score about six months before you begin shopping for a mortgage. That will give you time to make any fixes to improve your score.
If you need a referral for a good lender, please tell me!
Comments