The Mortgage Corner with Greenstate Credit Union: If I have my credit score pulled, will it negatively impact my credit score?

If you're in the market for a mortgage, you may be wondering if having your credit report pulled will have a negative impact on your credit score.

What happens when my credit report is pulled?

When you apply for a mortgage, the lender will pull your credit report as part of the application process. This is known as a 'hard inquiry', and it can temporarily lower your credit score by a few points. This happens because the credit scoring models view applications for new credit as a sign of potential risk.

However, it's important to understand that this impact is usually minimal and temporary. In most cases, your score will rebound within a few months, assuming you continue to manage your credit responsibly. Furthermore, the impact of a single hard inquiry will reduce over time and will no longer be considered in your credit score after two years.

Can I check my own credit with no effect on my scores?

Yes, you absolutely can! When you check your own credit score or report, it's considered a 'soft inquiry'. Soft inquiries do not affect your credit score, no matter how many times you check. This means you can check your credit score as often as you like without it impacting your credit score.

It's a good idea to regularly check your credit report and score, as it allows you to understand your current credit health, identify any errors that may be affecting your score, and understand what you can do to improve it.

What happens if I have my credit checked by more than one lender?

It is worth noting that the credit scoring models are designed to allow for rate shopping. This means that multiple inquiries from mortgage lenders within a short period of time (typically 14 to 45 days, depending on the scoring model) are treated as a single inquiry. This allows you to shop around for the best mortgage rate without significantly damaging your credit score.

In conclusion, while applying for a mortgage does result in a hard inquiry on your credit report, the impact on your credit score is typically minimal and temporary. Don't let concerns about your credit score stop you from shopping around for the best mortgage deal! 

Here at GreenState we offer competitive rates and we are confident we’ll provide you the best solution, however we understand making an informed decision is the best course of action. 

For additional information about your credit report please contact one of our lending partners at GreenState Credit Union at www.greenstate.org/mortgage                          NMLS #401238