how can I improve my credit score

Question

Hey Guys!I got pre-approval in December but could not close the deal and now I applied for another pre-approval last week for new construction that I found but it will probably close by august or September. That means my credit score will be hurt three times. I just want to know how long it take for my credit score to get up and if there is a way to get my credit score to bounce back up quickly.Thanks in advance!

Jack Tulloch · Answer

Hey Muhammad - how quickly your credit score will recover from a hard inquiry will depend on a few factors: Overall credit profile, amount of hard inquiries, and time in between each inquiry. Generally, 2-3 hard inquiry's within 45 days will not have a considerable lasting impact on your score.

Here is a helpful article I found: How Multiple Credit Inquiries Affect Your Credit Score

Delwyn A. · Answer

The impact of hard inquiries on your credit score will depend on several factors, including the number and timing of the inquiries, as well as your overall credit history and current credit utilization. Generally, a single hard inquiry can result in a temporary drop of a few points in your credit score, and multiple inquiries within a short period of time can have a more significant impact. However, the effect of hard inquiries on your credit score is typically less significant over time, and your score should begin to recover within a few months, as long as you continue to make on-time payments and maintain a healthy credit utilization ratio. It is important to note that the exact amount of time it takes for your credit score to go up after three hard inquiries can vary based on these factors, and there is no definitive timeline for credit score recovery. It is recommended to monitor your credit score regularly and take steps to maintain good credit habits to help improve your creditworthiness over time.

Kristen L Garner · Answer

Hi Muhammad,

Lenders are able to run what is called a credit simulator. We can do this to achieve a specific score (ex: mid score needs to be 740) or we can do this to see what your highest and best score possible is.  The simulator will come back letting you know exactly what to do (ex: pay down your amex by $404).  Once you have taken the steps on the simulator, your score can be refreshed without doing a pull.  Most lenders do this for free.  Some may charge a small fee if the refresh needs to be rushed.

Best of luck!

Michael Hutchinson · Answer

With Dodd Frank, you can apply to more than one lender in the first 30-45 days and only hit your credit score once.   Many of us do credit repair at little/no cost and I would recommend you apply to a second lender who can help.   With the modeling, we can put in assumptions and duration and model with a percentage likelihood what your score would be.  We can also discuss with you potential improvements to help.

I am honestly a little surprised your lender didn't do this lenders want you to be successful.   It is better for you to get a great score, lower cost and give me a referral later.   I am happy to take a look if you want and you only have to pay for the credit pull.   Good luck with purchase!

Randall Alan · Answer

@Muhammad Ahmad

It depends on what made it go down.  Things like a bankruptcy will have a 100-150 point effect for the length of time something like that is reportable - which is years.  But I keep pretty close tabs on my score and when I bought a car my score went down  by about 20 points and within a couple of months had come back up by 8 points.  Within 3-4 months it had basically recovered the 20 points it had lost.it also depends on your payment history.  It is constantly calculating how well you are handling your credit… not only how much you take out, but how much debt you are carrying, etc.  if I buy a vacation on a credit card and use $4,000-6,000 you would see your credit score dip due to that much credit being used.  But if you paid it off the next month your score would bounce back up by at least half that dip and within a few months barring anything else moving it, it would come back up.  It’s designed to instantly reflect where you are at financially.keep in mind I’m not any sort of expert, but just know from my own experiences.  I can tell you, though that there are applications out on the Internet that will let you estimate the impact of what certain transactions will affect your credit score. Lenders often use them to make suggestions to their borrowers as ways to improve their score when buying a property.Here is one like I’m talking about.  I think you have to make an account to use it, but search and there are others out there too. https://www.creditkarma.com/to...all the bestrandy

Randall Alan · Answer

@Muhammad Ahmad

Credit scores do respond to inquiries... but there is a window... I think it is between 30 - 90 days where if you were shopping for a mortgage or a loan all of your inquiries count just as one 'ping' on your credit, as I understand it. Those inquiries don't impact your credit significantly as new debt does.  So I wouldn't expect to see a huge swing in your credit score for a few inquiries.  I would guess 5-10 points.  If you take out a loan it will swing more.  Just understand that your credit score is dynamic.  It responds to what you do.  That is its whole purpose.  It then inches back up as you make payments regularly, and have fewer inquiries, etc.  So there really isn't a long term affect to getting an inquiry on your credit.IF you are in critical need of a particular score, there are companies out there that can 'juice' your score through both normal and 'artificial' means.  They will look for items in your credit report that are incorrect and challenge them (that's a normal means).  For a price, some will add you to their 25 year old credit card that has a $50,000 available credit) so that it looks you have more long term credit that has little to no balance. (You don't get access to the credit card... you just ride their 'good credit' coattails to get an increase on your score).  It's a bit of a cheat (probably), but apparently it's legal.  So that can bump your score up to 'thread the needle' for a loan if you needed something like that.  But something like that would cost you $$$$.  Probably worth it in the long run if you are talking about a mortgage.  Hope it helps!Randy

how can I improve my credit score

Most Popular Reply