When do additional credit inquiries NOT hurt your credit score?
A lender told me that if I let several banks/lenders pull my credit within a short timeframe (like 14-21 days), it won't hurt my score anymore than if there was just one credit inquiry. But they weren't sure of the timeframe. Do you know what it is?
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I think the “rule” is 15-45 days depending on credit system but I think 30 is standard. Do them all within 2 weeks and you should be golden.
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Quote from @Trevor Levine:
A lender told me that if I let several banks/lenders pull my credit within a short timeframe (like 14-21 days), it won't hurt my score anymore than if there was just one credit inquiry. But they weren't sure of the timeframe. Do you know what it is?
It is smarter to work with a mortgage broker instead. One credit pull will give you access to hundreds of lenders, instead of shopping and jeopardizing your rate from the time you spent talking to different lenders.
@Trevor Levine I always thought it was 14 days. However it might vary by the type of credit applied for. Car, credit card, or mortgage application.
My experience is that a hard pull has very little affect on my credit. However my credit is very good and a very long credit history. I have rarely had more that 2 pulls relatively close together. But even two close together had very little affect.
@Trevor Levine-thanks ....Credit reporting agencies will often count several hard inquiries placed in a short period of time as one event. However, if you consistently have hard inquiries on your report and a low credit score, you may be viewed as a risky borrower
If you have a good credit score, the effects on your score could be minimal, especially if you've been keeping your balances low. But if you have a poor credit score and a high amount of unpaid balances, those credit inquiries may lead to application rejections and an even lower credit score.
If you have a good credit score, a hard inquiry is less likely to negatively impact your credit score.
"Your current rate shopping period is limited to 30 days. If you want to shop around for interest rates, you should only start the process when you’re actually ready to open an account. The reason? You’re only protected by the FICO rate shopping period for a specified amount of time.
"When a lender pulls your credit report, the score they receive will not factor in any related inquiries from the last 30 days. If you’re rate shopping your third mortgage lender this month, they will see a score that doesn’t factor in the other two mortgage applications. As long as it’s the same type of application activity and all within the last 30 days, your score is protected. As long as it’s the same type of application activity and all within the last 30 days, your score is protected.
"However, this doesn’t apply to other credit product applications. If you’re shopping for a mortgage lender, for instance, the FICO score they receive will factor in that new credit card application you submitted last week.
"Your past rate shopping periods range from 14-45 days. According to FICO, there are three different rate shopping periods that your past inquiries can fall under. They are 45 days, 30 days, and 14 days; these time frames will count for inquiries not made in the last month, but were still from a time when you were rate shopping. The time period that applies to your score depends on the scoring model your lender uses when they pull your credit.
"Lenders choose which scoring model they use when pulling your credit; there’s many different types of scoring models, and they all differ in their rate shopping period calculations. Unless you know which model your lender prefers, you have no way of knowing beforehand which rate shopping period you’ll be allotted."
Quote from @Ned Carey:
@Trevor Levine I always thought it was 14 days. However it might vary by the type of credit applied for. Car, credit card, or mortgage application.
My experience is that a hard pull has very little affect on my credit. However my credit is very good and a very long credit history. I have rarely had more that 2 pulls relatively close together. But even two close together had very little affect.
Hi Ned- I’ve requested to befriend you, still waiting for your yeay or ney. Looking to connect with you for possible mentorship opportunity. I am in MD area as well and based on your responses you seem very knowledgeable. It would be my honor to get in touch and possibly build a relationship/ learn from you. Have very specific questions that I can’t find answers to.
thanks!
It also doesn't really hurt your score that much. Age of accounts, history, and balances more important.