How do credit reports and credit scores treat the act of shopping around for the best interest rate?
In order to address this question you have to split them up and examine changes in consumer credit shopping patterns over the past 20 years. Credit Reports – Here’s the bad news. Credit reports are nothing more than warehouses that store your credit histories. They don’t have a brain so they cannot distinguish between when someone is shopping for the best interest rate versus someone excessively shopping for credit. The two actually look very similar on a credit report. A lot of inquiries may be posted in a very short period of time and there’s no difference on the surface. Credit Scores – Here’s the good news. Credit scores are actually quite sophisticated and can be programmed to interpret credit data, specifically inquires, in an appropriate way. . A smart credit scoring model will be programmed to read multiple inquiries in a short period of time as a consumer shopping around for a good deal on a car or mortgage loan and not a consumer applying for four or five separate loans. A Li
In order to address this question you have to split them up and examine changes in consumer credit shopping patterns over the past 20 years. Credit Reports Here’s the bad news. Credit reports are nothing more than warehouses that store your credit histories. They don’t have a brain so they cannot distinguish between when someone is shopping for the best interest rate versus someone excessively shopping for credit. The two actually look very similar on a credit report. A lot of inquiries may be posted in a very short period of time and there’s no difference on the surface. Credit Scores Here’s the good news. Credit scores are actually quite sophisticated and can be programmed to interpret credit data, specifically inquires, in an appropriate way. . A smart credit scoring model will be programmed to read multiple inquiries in a short period of time as a consumer shopping around for a good deal on a car or mortgage loan and not a consumer applying for four or five separate loans. A Little
