Is there a way to get pre-approval without hurting your score? Does the bank need to pull my credit each time I apply for a loan?
The bank is going to pull your credit every time you apply for a loan unless you have established a relationship with someone at the bank and do business with them on a regular basis.
on another note though having you credit pulled multible time within a 2 week period for "like" (IE. for a house or a car but all for the same thing) items will not hurt you credit other than the initial hit.
Shrug, I just bought a house in June and my credit score went up...
One idea is to print all 3 of your credit reports from annualcreditreport.com and show it to the lender before they pull your credit. This will help them look it over before they "officially" run it through their system.
You will take a small hit on your score when you apply but it will go back up within a couple months of taking out the loan (assuming your paying all your bills on time).
Make sure you pay your credit card bills BEFORE the statement cuts, that way your utilization reported to the credit bureaus will remain low which will raise your score.
A hard pull doesn't take too many points off your score...you'll get them back in a few months anyway.
I wouldn't worry too much about it.
The number of pulls on your credit score is 10% of your credit rating. If you "shop around" or try for more than a couple of loans and a credit card per year this can lower your score by 70 points! Most lenders do 2 pulls: one at the beginning, and one at closing. Not cool.
I have yet to figure out how to avoid getting double-hit. One strategy that was mentioned above is to get your credit report yourself and give that to the lender. You can pull your credit report as many times as you want without disturbing your number. I have not tried this, but maybe your lender can pre-approve based on that. If you try this method, I would guess that they will also require your FICO score, which you have to pay for.
If you do find a way, keep me updated :)
An inquiry won't hurt you too bad if your overall credit is healthy. Someone mentioned the two week rule if you are shopping around lenders, but if you are getting a loan on a property, and your paying the loans regularly, you will be fine. Will bounce right back in a month or two if it even moves at all.
Thanks everyone for their response.
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