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Unread 09-24-2009, 06:33 PM
 
Location: Northern Virginia
1,420 posts, read 1,726,649 times
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Default how often can credit scores be pulled without impact to score?

hi = I am applying for a mortgage and had my scores pulled by another bank two weeks ago. I am not going with that bank as he does not offer the best rate/program. So obviously I need to apply through a different bank now. I am concerned about the number of times my credit is pulled, and how it affects my credit and I'm hearing a few different things. Does anyone know?

My current lender says your credit can be pulled for a mortgage any amount of times within a 30 day period. My realtor says that's not true, and that they can pull twice within that period. Who's right?

and worse case my scores get dinged, how much is it likely to change?

Thanks guys - I'm credit score paranoid because mine just severely dinged by having my two credit cards credit limits lowered this summer through no fault of my own. Now I'm terrified of any potentially negative affect.
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Unread 09-24-2009, 08:16 PM
 
2,308 posts, read 3,106,864 times
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The credit bureaus treat multiple mortgage loan requests in a 30 or 45 days period as just one request.
If you do have other requests like auto loan or other such credit checks, it will lower your score and they are not clubbed together.
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Unread 09-25-2009, 08:53 AM
 
Location: Boise, ID
4,953 posts, read 8,446,900 times
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The credit companies realize that you might want to "shop around" on the mortgage and expect that still means you will only buy one house in the end. Therefore, you should be able to get any number of reports done from lenders without issue.

As for how much multiple reports dings your score, I've never been able to find a definative answer on that one, sorry.

And I feel your pain. I haven't had any limits lowered, but two of my oldest cards were cancelled this year because of non-use. I didn't even get notice, I just saw on my last credit report that they said "closed at credit grantor's request" and I haven't used them for a few years, so I can only assume that is why. I know that hurt my score, as my ratios went up and my credit age went down.
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Unread 09-25-2009, 09:06 AM
 
Location: Plano, Texas
1,667 posts, read 3,879,034 times
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I would suggest that you find a good mortgage broker. He/she can pull your credit once and use that report to shop with multiple lenders. Sure beats you giving your personal information to several different people.
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Unread 09-25-2009, 11:28 AM
 
25,334 posts, read 16,869,723 times
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Does anyone know how many points you get whacked for each mortgage inquiry?
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Unread 09-27-2009, 07:47 AM
 
Location: Northern Virginia
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I have answered my own question so I'll share it to the best of my ability I had my credit check on 9/11/09 and then again on 9/25/09 and there was absolutely no change. In my research, mortgage lenders can check your credit several times in a certain period (not sure how long that period lasts) before it will impact your credit. Credit card companies etc are not treated the same as firms checking your credit for mortgage purposes.

If it does go down, I'm told it would only be a point or two.
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Unread 09-27-2009, 07:51 AM
 
Location: Northern Virginia
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Seriously, they need to relook at how they score....my scores were "excellent" when my two credit cards dropped my limit to basically just over what I owed (I suppose I'm lucky they didn't drop below what I owed!) and now my scores are just "good". I have never had a late payment, have plenty of credit history and the cards limits were lowered through no fault of my own, just because if the economy. So now my scores are making it tough for me to get the mortgage rates I want and I have DONE NOTHING WRONG...only to see my scores take a HUGE hit. Something needs to be done about this....

Quote:
Originally Posted by Lacerta View Post
The credit companies realize that you might want to "shop around" on the mortgage and expect that still means you will only buy one house in the end. Therefore, you should be able to get any number of reports done from lenders without issue.

As for how much multiple reports dings your score, I've never been able to find a definative answer on that one, sorry.

And I feel your pain. I haven't had any limits lowered, but two of my oldest cards were cancelled this year because of non-use. I didn't even get notice, I just saw on my last credit report that they said "closed at credit grantor's request" and I haven't used them for a few years, so I can only assume that is why. I know that hurt my score, as my ratios went up and my credit age went down.
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Unread 09-27-2009, 10:13 AM
 
8,424 posts, read 21,898,726 times
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You just need to get those credit cards down under the 30% of the total owed. I was reading that they do this to force people to pay off debts instead of paying the minimum and keeping the debt. I also read that the drop in your score from checks is only 5 points/check or so for 30 days and then it recovers.
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Unread 09-27-2009, 03:53 PM
 
Location: Birmingham
756 posts, read 1,043,649 times
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Hi, the rate a score goes down due to an inquiry etc is not released or published anywhere as it is proprietary information to the company that developed the particular scoring system used. Also, scores are living so everytime your credit report is scored, it utilizes a combination of inquiries, debt ratio etc and that is why an inquiry will impact different files to different degrees.

The automobile inquiries are actually treated as one by most scoring companies.

The reason the other poster's score went down when the company dropped the credit limits was due to the highcredit limit/ usage ratio being affected.

I agree in that they do need to address these issues. However, the whole system is flawed in my opinion as the difference between the number of people that will go delinquent in a score range of 860 versus a score range of 650 is nominal.

Do you know that over 95% of the people that score 650 on most scoring cards will pay? 95%! And, again, that is an aggragate and the difference between 860 and 650 is small. I can't post every score card in use, but I can give you an average.

Why do you think they utilize the difference between 860 and 633 - so they can get higher interest rates based on very little supporting data. Most of the severe delinquencies occur due to divorce and/or major illness and there is no way to predict that now unless they were to use geneic testing.

Setting rates based on scoring is complete BS. They know they are going to approve you if you have a 640, and yet they penalize you because you didn't have a 860. complete bs.
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Unread 09-27-2009, 06:39 PM
 
Location: Boca Raton, FL
3,889 posts, read 4,378,554 times
Reputation: 3350
Smile Here is the deal on credit scores and repulls

I have a credit background and here's the scoop:

From the first financial related inquiry (mortgage, real estate, bank for a mortgage, etc), you have 30 days from that first inquiry before it would impact your score.

For the car inquiry, same deal but only 15 days.

All others - if you apply for a cell phone, then a credit card, then a department store card - you would have hits but if this is your normal way of doing business, it would be minimal.
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