Real Estate Investor · Member since 2008 · 34 posts · 3 votes
A couple of random questions.
When a new banker pulls your credit, does it actually show the amount in the Checking and Savings accounts? I have a few (old accounts a couple hundred bucks) accounts with zero activity, are they listed as well? I can't remember...
We did eight deals last year. When one potential new banker viewed our credit, they said "why did they pull your credit 10 times"? This is for the entire year, but the new bank said we would've only pull it once or twice. Now we already had a line of credit (and a 25 yr. history) so why (basically once a month) would he pull it knowing it will lower our scores? No, this isn't a question I should ask them. This is small compared to a ton of unnecessary events all year long. However, I wonder how much damage did it do?
DTI can affect your credit not in the sense that it can change your score but it used by the person (bank) pulling your credit to determine the risk of loaning you what you have requested.
As far as mortgages or other types of loans go, others may be able to describe exactly how it works, but the score is somehow determined upon a well rounded credit history. There are different types of credit. Credit cards, Bank loans. Car loans. Mortgages. Lines or credit, ect.
How you manage each area of your credit is factored into the score. If you do not have any history at all in one area or type of credit it can hurt you just as if you having no credit at all can hurt you.
Go to one of the credit bureau's websites and read up on how your credit is determined and it will give you the basics and others will chime in here to correct any mis statements that might been made.
DTI isn't an issue on credit scores, however debt to line amount could cause the score to come down drastically.
For instance, if I add up all my revolving credit cards limits and have $50,000 available to use on credit cards and only $5,000 in credt card balances, it won't effect my credit score much. If I have $50,000 in total available and $30,000 in outstanding balances, my score will go down significally.
Credit Inquires can hurt your credit even if the inquire is with an entity that you have a present relationship. The issue is, how is the inquiry coded. If it is coded as the bank is just checking to see how you are doing, that is soft, if it is coded as you are seeking funds, then that is a hard inquiry which will hurt your score.
I would send the bank the following letter:
Dear Creditor:
In a recent review of my credit reports I discovered an inquiry from your company. I do not recall authorizing you to review my credit. Accordingly, I would like to be sent proof that I initiated or requested for you to review my credit. Please respond at your earliest convenience.
Based on the FCRA, I must have authorized you to review my credit with written permission. Please forward a copy of that written authorization. If you are unable to provide me with proof or do not retain records of such authorization, please promptly remove the inquiry from my credit report (name which credit bureau) and send me written confirmation of the removal.
Thank you for your timely reply.
Sincerely,
Joe Consumer