Why do the credit bureaus count it against your credit when you make an inquiry into your credit score?
Neerdowellian asked:
I’m trying to find the best mortgage rate to buy a house, therefore there are several mortgage companies running my credit. How in the world am I supposed to shop for a good rate if every inquiry damages my score? Isn’t that the dumbest thing?
I’m trying to find the best mortgage rate to buy a house, therefore there are several mortgage companies running my credit. How in the world am I supposed to shop for a good rate if every inquiry damages my score? Isn’t that the dumbest thing?
An inquiry usually means that you are looking to borrow more money. If you have many inquiries at one time it looks as if you are trying to borrow from all of them. There’s an old saying that banks only lend money if you can prove you don’t need it.
When shopping for credit for a refinance or new mtg you will be doing a “hard pull” inquiry. A hard pull inquiry does lower your score. For your purpose, all of the inqueries from the first mtg inquiry and any thereafter for 30 days will be counted as ONLY ONE pull. However, and other inqueries or those after 30 days will count, they ding your score for multiple inqueries because it looks like you are shopping for credit, and it discourages people for just applying to every finance company they can get an application with.