Question Details

Nadia, Home Buyer in Maine

How much does it affect our credit to have it pulled by a potential lender?

Asked by Nadia, Maine Fri Dec 21, 2007

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Doug & Elvis covered your question well. But it's not unlimited as to how many pulls. I believe the magic number is still 11 credit pulls within the 14 day period and it's only for mortgage inquiries. If you apply for a credit card or an installment loan during that period it counts as a different pull. As to how much it effects your credit score, it depends. Yes, 10% of your score is from inquiries but if you have high ratio's on your credit cards and/or you have some recent late payments (within 2 years) or collection accounts then it will affect your score more. If you combine many credit inquiries with a few recent late payments along with high credit card ratio's (maxed out credit cards) the credit bureaus look at you like a bankruptcy waiting to happen and therefor your score drops faster.
1 vote Thank Flag Link Wed Dec 26, 2007

Good question. In the mortgage industry, there is a 45 day cycle. Intially you have a 14 day window for credit inquiries. Following that 14 day window, you have a 30 day waiting cycle (also known as a deduping period). On the 45th day - 14 day window + 30 day waiting - ALL your initial credit inquiries only count as ONE inquiry. So you can have your credit pulled hundreds of times and it only counts as ONE.

So what if you have your credit pulled after the 14th day - say the 15th, 16th or 17th, then the 45 day cycle starts all over again. Also please keep in mind that credit inquiries only account for 10% of your total score anyway.
2 votes Thank Flag Link Fri Dec 21, 2007
It does not substantially "ding" your credit to have it pulled in order to obtain a mortgage, In fact, during the process of shopping for a mortgage, you may have 2 or 3 lenders pull your credit, and Equifax, and Transunion and others are smart enough to recognize that if it occurs in a short period of time, that you're probably shopping for a mortgage, and only count it as one "ding".

Try to make sure that you're not also opening credit cards, or buying a new car on credit at the same time, as those would be counted seperately.
2 votes Thank Flag Link Fri Dec 21, 2007
Alan May, Real Estate Pro in Evanston, IL
Mortgage inquiries, regardless of the number only count as "1" inquiry on the 45 day - as long as they ALL are pulled within the 14-day window.

It's the same way in the auto industry - just a shorter period. You have the same 14-day initial window for credit inquiries, then there is a 14 day waiting period (30 for mortgages) and on the 29 day, "all" the credit inquiries that occurred during the intial 14-day window only count as "1" inquiry.
1 vote Thank Flag Link Wed Dec 26, 2007
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