“Avoid excessive inquiries – A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.”   It could cost you as much as 100 to 120 points…

OK, let’s interpret this statement.  What the facts really are is this… The credit bureaus weigh the number of times you go “shopping” for credit because of the above reason, but they are also aware that many financial savvy consumers go shop for the best loan, interest rates and terms.

Recently they have become more lenient with inquiries, but within standards.  Here are some rules to live by.  When “shopping” for loans, rates and terms for a house, a car or business loan, etc., be sure to do your shopping within a 14 day time frame and don’t go over 5 inquiries.  More than this and you risk a heavy point loss on your credit reports.  Also, be sure that you are really going to get your loan or the 5 inquiries will count against you, up to 30 points lost because you didn’t actually get the loan that you shopped for.  It’s good and bad news… just be sure that you are going to get the loan when you start to apply.

It’s best to pull your own credit scores and report and show this to the lender before you let them pull your credit.  Have them tell you best rate and terms, then shop other lenders.  When you have chosen the best rate and terms and lender, then let them pull your credit and start the loan process.  This then has let only 1 inquiry happen and you are still in great credit shape.

The only and best place to pull your own credit score/report is www.MyFICO.com.  This is an actual and legitimate FICO score and will work for you.  All others that you can pull yourself will be “simulated scores for educational purposes only”.

Get a Free Credit Analysis ($120 value) just by calling and saying you read us on our Blog.  We will be happy to serve you…  801-769-9443