Will Multiple Loan Applications Hurt My Credit Score?
Will Multiple Loan Applications Hurt My Credit Score?When you’re shopping for a new home or auto loan, you’ll probably apply for several loans to get the best interest rate. However, you’ve been told that several applications for credit hurt your credit score. Does that mean rate shopping will bring your credit score down?Answer: The short answer is that it depends. If you find your loan within 14 days, your credit score will probably be safe. Depending on the lender, that time could increase to as much as 45 days. Most credit scoring models have been designed to recognize when a consumer is rate shopping and avoid penalizing them. For example, the most recent FICO score ignores all mortgage or auto loan inquiry made within a 45-day window. Older versions of the FICO score use a 30-day or 14-day window. Once the “window” has passed, loan inquiries are treated as one. Whether (and when) your score will be influenced by rate shopping depends on which credit score your lender is using. Cr
