Credit Report News: Does shopping for a deal hurt my credit report?

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Friday, April 09, 2004

Does shopping for a deal hurt my credit report? When a lender pulls up a credit report to check your credit, a notation of the inquiry is listed on your credit report. If you are applying for lots of loans and credit cards you'll have lots of inquiries. Your FICO score will be lower to reflect the increased risk of someone who seems to be loading up on credit accounts.

Fortunately, there are exceptions. If your credit report has a lot of inquiries for auto loans in a short period of time, they'll usually be counted as just one inquiry, based on the idea that you are probably just shopping for the best deal. Multiple mortgage loan inquiries in a short period of time also usually count as just one inquiry, for purposes of the credit score.

And, don't worry about inquiries you make when you get your own credit report. That's called a "below the line" inquiry. It is hidden on your credit report so it cannot reduce your credit score.
4:40:31 PM