If you are in the ReFi or Home equity loan market most certainly your credit will be ran. I am one of those people. Here is what I have learned and I would like to pass on to those who do not know.
When you apply for a loan your credit is ran with all three credit reporting bureaus. Each time there is a hard check on your credit, your score can go down 20 points or less, but always goes down. Now you are getting a loan based on that score and other things. But that score is big in the decision dept. Now I got a quote from my bank for a cash out refi and didn't like the quote. I called them back two hours later and said how about we try a home equity loan instead of a refi. Well sir we are going to have to do a credit check. I said you just did it 120 minutes ago, look on the screen. I see that but this is a different "product" that requires a credit check. I get that. But each time you check my credit it goes down. I get a rate based on the score. What is this a game? By checking it you are lowering it. I understand what you are saying sir but this is how it is. I told him I had something to tend to and if he could call me back in 10 mins.
I found out if your credit is checked more than once within a 14 day period, they know you are shopping for loans and you only take one hit on the hard credit check, not multiple. I was relieved. We have great credit, but the best rates come with the people who have the best scores and LTV.
Did anyone know this? I didn't. I have not borrowed money in a long time. Thought it was worthwhile passing on.
When you apply for a loan your credit is ran with all three credit reporting bureaus. Each time there is a hard check on your credit, your score can go down 20 points or less, but always goes down. Now you are getting a loan based on that score and other things. But that score is big in the decision dept. Now I got a quote from my bank for a cash out refi and didn't like the quote. I called them back two hours later and said how about we try a home equity loan instead of a refi. Well sir we are going to have to do a credit check. I said you just did it 120 minutes ago, look on the screen. I see that but this is a different "product" that requires a credit check. I get that. But each time you check my credit it goes down. I get a rate based on the score. What is this a game? By checking it you are lowering it. I understand what you are saying sir but this is how it is. I told him I had something to tend to and if he could call me back in 10 mins.
I found out if your credit is checked more than once within a 14 day period, they know you are shopping for loans and you only take one hit on the hard credit check, not multiple. I was relieved. We have great credit, but the best rates come with the people who have the best scores and LTV.
Did anyone know this? I didn't. I have not borrowed money in a long time. Thought it was worthwhile passing on.
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