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| *Loan,banking and credit>>>credit check |
I'm hesistant to check my credit score because I heard it will affect my score. Is this true or not? |
I'm hesistant to check my credit score because I heard it will affect my score. Is this true or not? As with all things credit, this issue is a hell of a lot more complicated than people think it is and there is a lot of misinformation floating around about this. You are going to have to read this carefully as it gets very complex. Ok first of all you can get both hard and soft inquiries. A soft inquiry occurs when you check your credit yourself. This can be done directly via the 3 credit bureau's although you would have to do it 3 seperate times one for each bureau. You can also do this via myfico.com, freecreditreport.com etc. However, there are a few problems with this. 1) These companies are out to sell you all kinds of crap you don't need. They are constantly bombarding you trying to get you to buy all kinds of non sense products. Things such as "indetity theft protection" which is something you do not need. 2) The credit scores that they give you are FAKO's and not FICO's which are the real credit scores that lenders use. You could get your FAKO and then apply for a mortgage and be really shocked by how much higher/lower your FAKO is compared to your real FICO. There are hard inquiries which are done by:: auto dealers, mortgage company's. credit card companies and others. These kind of inquiries can and do reduce your FICO (who knows what they do to FAKO ha!) and decrease can be any place between about 3-7 points depending on a very wide variety of other factors. The average is about 4 points or so. Ok finally I will end by busting a widely held myth. People claim that you can run your credit for the purposes of getting a mortgage for a period of 45 days and have it not decrease your credit score. This CAN be true but is usually NOT true and is just a selling point that mortgage brokers and bankers use to sell loans. The thing is this. Mortgage companies run their credit via a 3rd party company. The 3rd party companies takes data for all 3 of the bureau's and "merge" them into what is called a "tri merged report". This is the grand daddy of them all and this is what mortgage lenders use and this is considered your most complete and accurate credit report. (This is also the ONLY place where you can get your REAL credit scores) OK there is some software that can be used that will put the 45 day rule mentioned above into effect (soft ware used by the 3rd party companies) however, it cost thousands and thousands of dollars to buy this soft ware and the vast majority of 3rd party companies either can not afford it or just do no wish to buy it because it is too costly. As such most of the time when you run your credit for a mortage your FICO WILL decrease. I hope this helps. Source(s): Former mortgage broker 7 years. Credit repair specialist currently. Not true. Who ever told you that was incorrect. Your credit score is considered a "soft inquiry" and will NOT effect your score no matter how many times you check it. The only inquiries that will effect your score are "hard inquiries" that is where you specifically are requesting new credit. yeah i heard that everytime u request your credit report, u lose some points...but if you desperately need to know, then just do it one time... get real,,, you know what you owe and what you do not, it always amazes me when i call a dtr to ask them to pay ,, they act like they dont remember,, give it up! you know what you owe,,, especially if you didnt pay for it! |
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