What Is Your Credit All About? – Part II

What Is Your Credit All About? – Part II

 Last week we discussed the importance of having a good credit score.  This week I am going to discuss something that a lot of people don’t consider that also affects your credit sore and that is something called inquiries.  Every time you allow someone to pull your credit report, you are adding another inquiry to your report.  These inquires remain for 120 days and can have negative implications. 

Credit ScoreThere are two types of inquiries.  The first is what is known as a “soft” inquiry or a “soft” pull.  This kind has no impact on your credit score.  A soft pull is not used when applying for a loan.  Instead, it is used to look up applicants by employers, insurance offices, licensing, offices, etc.  The other type of inquiry is known as a “hard inquiry or “hard” pull.  This kind does affect your credit score and is used when applying for a loan.  Under the Fair Credit Reporting Act (FCRA) Regulation V, the person pulling your credit must have permissible purpose either by written, verbal, or court order to pull a consumers credit.  When shopping for mortgages, car loans, and or student loans, the consumer has a 45 day shopping period.  When shopping for credit cards, each credit card application counts as its own inquiry resulting in a no shopping period.  This is because the consumer has the ability to open many accounts at once; however, this isn’t the case when dealing with purchasing a home, car, or student loan.

If you find yourself unarmed when shopping by not knowing what your credit score is, there is help.  Under the Fair and Accurate Credit Transactions Act (FACT ACT) of 2003, which amended the FCRA Reg V, you’re protected.  The purpose of this act was to help consumers fight identity theft, improve credit resolutions, and access their credit information to see if it’s accurate.  Consumers are allowed one free credit report per bureau per year (two if a fraud alert exists) by going to www.annualcreditreport.com.

Just keep this in mind, don’t give your social security number out until you have made the decision of who you are going to do business with.  A reputable company will respect this and should be able service your needs in the preliminary stages without pulling your credit.  Not sure who to call or where to start? Contact me today for a 100% free no-obligation loan inquiry analysis.

Matt Pell,  Loan Officer
Mortgage Warehouse, LLC
(239) 672-8502 – Direct Line
(239) 344-9223 – Fax
Matt@mortgagewarehouse.com
www.facebook.com/themortgagewarehouse
Company NMLS ID – 137154
Individual NMLS ID – 1018529
Better Business Bureau Rating = A+

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Posted on April 15, 2013, in Finance and tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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