Question by numom: does your credit score drop if you “shop around mortgage rates” at different banks?
am looking to buy a house for first time and i want the best mortgage rates. Ive heard your credit score suffers if u go to different banks. is this true?
Best answer:
Answer by slick
I heard the answer on CNN this morning… Enquiries are a tiny ding, nothing to worry about.
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You take about a 2-3 point ding if you do it all within the same month, more if you spread it out. Your credit suffers worse when you apply for a credit card.
That’s what brokers are for. You tell them what you want and they go get the best deal for you. Period.
There is nothing you need to worry about. Your credit rating would not be hugely affected with your plans. However, planning on credit and bad you carry and dealt with it matters.
Hard inquiries hurt your score about 1 or 2 points (if you have good credit).
Up to 5 points if you have bad credit.
Very, very minor part of your fico score (from an 850 top score).
Also all inquiries done in a 3 week window are treated as one.
This is to allow the customer to “shop around” for a good rate.
In conclusion: Don’t worry about this. Compare and get a good rate !
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