ONE COOL THING.
Each month we’ll send you one cool thing to know about California real estate.
This month it’s all about Credit Scores. Our California Association of Realtors® infographic outlines which companies may be looking at your credit score. Plus CreditKarma.com answers whether or not shopping around for mortgage rates will hurt your credit score.
SHOPPING RATES & YOUR CREDIT SCORE
This CreditKarma.com article answers the age old question: Will shopping around for the best mortgage rate hurt my credit score? The answer: yes and no.
When applying for lines of credit you are likely to be hit with a hard inquiry, and hard inquiries can negatively affect your score. However if you shop around within a period of about 14-45 days in a consistent manner (meaning same type of credit line and loan size) some credit bureaus may recognize this and allow for “some” level of shopping. During this time period the bureau may view multiple inquiries as just one, allowing you more flexibility to shop.
It’s important to know, however, that not all bureaus follow this credit score model and this rate shopping adjustment is typically only applied to mortgage and auto loans. You’ll want to stick with only one credit line at a time (e.g. a mortgage) to shop around for to lessen the hard inquiry impacts.
Bottom Line: Too much shopping around can be harmful but if you go about the process responsibly you can comparison shop with a fairly limited impact to your score.
Is someone you know thinking about buying or selling?
Have them call me! I’ll help them get started.
Laura Sechrist Molenda