Can the bank`s credit check itself affect my credit report/score negatively?

[Nir]

If the current bank I`m working with says no and I try with another bank, will the 2nd credit check itself affect my credit report/score even if it is perfect? In other words is it true that having another bank check your credit report (for the same deal) can affect it negatively? or is it really not significant, nothing to worry about? THANKS.

 

[PeterKinchMortgageTeam]

QUOTE (investmart @ Dec 21 2007, 05:12 PM) If the current bank I`m working with says no and I try with another bank, will the 2nd credit check itself affect my credit report/score even if it is perfect? In other words is it true that having another bank check your credit report (for the same deal) can affect it negatively? or is it really not significant, nothing to worry about? THANKS.

Unfortunatly there is no magic formula that predicts how different actions affect ones credit score - what we have are general guidelines to follow, that can change. It is true that multiple hits will affect your credit score, however inquiries within a certain timeframe, though will appear as inquiries, will not impact your credit score. We are trying to confirm what this timeframe actually is, but its pretty safe to say that if its within 7 days of the last inquiry, it likely won`t affect your fico score. (its likely actually longer than that)

In any case, if you have good credit to begin with, one extra inquiry certainly won`t mean a decline for financing.

 

[kanabel]

In my conversation with Equifax, I was told that if there was multiple inquiries for "mortgage shopping", for example, within 2 weeks that is accounted as one inquiry. However, only THEY know what they are doing I guess.

 

[BobHudson]

QUOTE (kanabel @ Dec 21 2007, 09:25 PM) In my conversation with Equifax, I was told that if there was multiple inquiries for "mortgage shopping", for example, within 2 weeks that is accounted as one inquiry. However, only THEY know what they are doing I guess.


Don`t forget that if they let you do a `soft pull` of your own score, it will lessen the negative effect. Some lenders are not as anxious to have you do the pull yourself but it is worth a shot.

 

[MicFromMirus]

I figured that the best (and hopefully the most acurate) answers would come directly from Equifax, so I called them (1-877-323-2598 - be ready to wait a loooooong time) and got these answers:

1) Every pull counts, irrespective of the time period. However the effect is relatively insignificant. ex. 3 pulls would reduce your score by 1 point.

2) The exception to the above is if you pull you own credit (which you can do once a year for free, go to https://www.econsumer.equifax.ca/ca/main?li...IEM&lang=en and look in the right column), in which case your credit is not affected.