I have been purchasing properties this past year, in total 9. I have been using a mortgage broker and I thought that he would be the only one pulling my credit report. However, in this past year I have had 21 hits on my credit due to the broker pulling it and all the mortgage companies. This has lowered my score. Seems silly that there is a penalty for having a mortg company look at your score and then penalize you for their action of checking the score. What can a person do to actively raise their credit score?
credit score being negatively impacted
- Thread starter LornaRush
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QUOTE (LornaRush @ Mar 8 2008, 09:56 PM) I have been purchasing properties this past year, in total 9. I have been using a mortgage broker and I thought that he would be the only one pulling my credit report. However, in this past year I have had 21 hits on my credit due to the broker pulling it and all the mortgage companies. This has lowered my score. Seems silly that there is a penalty for having a mortg company look at your score and then penalize you for their action of checking the score. What can a person do to actively raise their credit score?
Most lenders now pull their own bureau when an application comes in as an added layer of security against fraud. Unfortunatly, there is nothing that the broker can do about it but If the broker submits the deal very soon after he`s pulled the bureau, while it will show as an inquiry, the second pull shouldnt` affect your score.
Likely the reason that your`s has dropped is because you have applied for and taken 9 mortgages - and with each new application, your broker had to pull a new bureau. 9 hits in a year will affect your score, however, if it`s over 620 you really have nothing to worry about - the deal would likely not be declined due to credit score.
Hope that helps,
Most lenders now pull their own bureau when an application comes in as an added layer of security against fraud. Unfortunatly, there is nothing that the broker can do about it but If the broker submits the deal very soon after he`s pulled the bureau, while it will show as an inquiry, the second pull shouldnt` affect your score.
Likely the reason that your`s has dropped is because you have applied for and taken 9 mortgages - and with each new application, your broker had to pull a new bureau. 9 hits in a year will affect your score, however, if it`s over 620 you really have nothing to worry about - the deal would likely not be declined due to credit score.
Hope that helps,
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I heard a while ago that Beacon scoring is now, or is going to be, handled in a manner that borrowers are not penalized for shopping around.
For example - if a person looked at cars at 3 different manufacturers during a month and all three car stores pulled the credit reports, would that count as one, or as three? Same question goes for mortgage applications with Mortgage Brokers and Lenders.
For example - if a person looked at cars at 3 different manufacturers during a month and all three car stores pulled the credit reports, would that count as one, or as three? Same question goes for mortgage applications with Mortgage Brokers and Lenders.
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QUOTE (GarthChapman @ Mar 9 2008, 01:35 PM) I heard a while ago that Beacon scoring is now, or is going to be, handled in a manner that borrowers are not penalized for shopping around.
For example - if a person looked at cars at 3 different manufacturers during a month and all three car stores pulled the credit reports, would that count as one, or as three? Same question goes for mortgage applications with Mortgage Brokers and Lenders.
Apparently, inquiries within a certain number of days (ie one week to 10 days), no matter how many there are, will only affect your credit score as one hit would - though they will still show as inquiries on the bureau.
For example - if a person looked at cars at 3 different manufacturers during a month and all three car stores pulled the credit reports, would that count as one, or as three? Same question goes for mortgage applications with Mortgage Brokers and Lenders.
Apparently, inquiries within a certain number of days (ie one week to 10 days), no matter how many there are, will only affect your credit score as one hit would - though they will still show as inquiries on the bureau.
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QUOTE (LornaRush @ Mar 8 2008, 08:56 PM) I have been purchasing properties this past year, in total 9. I have been using a mortgage broker and I thought that he would be the only one pulling my credit report. However, in this past year I have had 21 hits on my credit due to the broker pulling it and all the mortgage companies. This has lowered my score. Seems silly that there is a penalty for having a mortg company look at your score and then penalize you for their action of checking the score. What can a person do to actively raise their credit score?
Hi all, Peter Kinch was reminding us at Quickstart of the above situation (broker and bank pulling report for same financing request).
I was arranging condo insurance to cover its` vacancy and I also wanted liability insurance. I couldn`t get a quote on the insurance (my regular insurance agent) until I agreed to let them pull my credit report. I asked why they required the information and they said a study had been done and had showed a correlation between credit scores and condo insurance claims. This was through State Farm.
So one more hit on your credit report that you weren`t expecting!
Heather
Hi all, Peter Kinch was reminding us at Quickstart of the above situation (broker and bank pulling report for same financing request).
I was arranging condo insurance to cover its` vacancy and I also wanted liability insurance. I couldn`t get a quote on the insurance (my regular insurance agent) until I agreed to let them pull my credit report. I asked why they required the information and they said a study had been done and had showed a correlation between credit scores and condo insurance claims. This was through State Farm.
So one more hit on your credit report that you weren`t expecting!
Heather
QUOTE (kennicoll @ Nov 10 2008, 03:25 PM) wondering if closing old credit card accounts no longer needed or used for some time will improve a credit score thanks ken
Hi Ken,
Yes, the number of open accounts you have showing on your bureau absolutely affects your score. Available credit is one of MANY factors that goes into calculating your credit score. If you don`t need them, close them!
Hi Ken,
Yes, the number of open accounts you have showing on your bureau absolutely affects your score. Available credit is one of MANY factors that goes into calculating your credit score. If you don`t need them, close them!
QUOTE (phardy34 @ Nov 10 2008, 01:39 PM) Hi Ken,
Yes, the number of open accounts you have showing on your bureau absolutely affects your score. Available credit is one of MANY factors that goes into calculating your credit score. If you don`t need them, close them!
thanks for the information and quick response cheers ken
Yes, the number of open accounts you have showing on your bureau absolutely affects your score. Available credit is one of MANY factors that goes into calculating your credit score. If you don`t need them, close them!
thanks for the information and quick response cheers ken
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The way that credit scores is calculated is a closely guarded secret. I have heard that there is over 60 factors used in making thast decision. There is a formula that they use that takes all those factors into consideration and how they correlate together. Not a specific number of any thing in particular. More pulls will hurt you, high balances will hurt you, too much unused available credit will hurt you, too little credit will hurt you, etc.
The simple thing is pay your bills on time, keep your credit balances low (around the 50% seems to have the best effect), don`t have too much consumer debt, don`t apply for stuff you are not buying.
For the next while credit will be tough. Pay attention to how you manage your credit.
The simple thing is pay your bills on time, keep your credit balances low (around the 50% seems to have the best effect), don`t have too much consumer debt, don`t apply for stuff you are not buying.
For the next while credit will be tough. Pay attention to how you manage your credit.