Does providing information in applications effect your credit score?

**mwburne** · 07-23-2006, 02:27 PM

I think I might have made a strategic error by contacting so many mortgage companies, on-line (probably 5 or so total) because each time I do that it might show up as an inquiry on my credit report which is a "derogatory" adversely affecting my credit score. Am I correct?

What is the best way to search for the best mortgage deal without hurting ones credit score?

Mike mwburne@yahoo.com

**promortplanner** · 08-08-2006, 09:08 PM

In many cases loan officers attempt to tell you that you will receive adverse reaction to pulling your credit more than once. They tell you this so you won't shop. The truth - effect is minimal. What people don't understand is that even when you pay your bills on time the creditor reporting that information counts as an inquiry. So what's the truth.

Inquiries drop off of your credit report every 90 days. Inquiries are source coded on your report for where the inquiry is generated. Inquiries show up differently from credit cards, auto dealers, to mortgage generated inquiries for a credit report.

My advice - never release your social security for a credit pull over the internet unless you've had an opportunity to confirm and verify that who you're dealing with is reputable.

Pulling your own credit reports from the 3 credit bureaus online is a different story. You'll pay an average of $7 to $9 for each bureau and make sure that you are dealing directly with that bureau. Sometimes you go to a site you believe is the credit repository and end up pulling a credit report from a 3rd party vendor. Those reports and scores aren't always current or correct.

Pull your own credit and shop with lenders to see what loan programs, rates, and fees can be delivered with the credit report you pulled on your own.

If you need any assistance with credit or financing for a refinance or purchase of a home call me direct at (888) 786-3371.