How Much Damage Can Shopping Around Do To Your Credit Score?

How Much Damage Can Shopping Around Do To Your Credit Score?

When you’re shopping around for credit whether it’s for a new auto loan, mortgage or credit card, the level of damage it does to your credit report will vary.

The level and extent of damage will depend on what kind of loan you’re trying to get and the model you’re getting your score from. For example, if you’re looking to get an auto loan or a mortgage some credit models will allow you to view multiple inquiries within a certain time period as if you were looking only once.

The credit bureaus often label it as if you’re comparing by noticing the types of credit lines you’re applying for and the size of the loan you’re trying to get.

In this case, it’s best to stay consistent. You stay consistent by doing it within a certain time period. This will allow you to rate shop without feeling the effects of numerous inquiries. The time period can range anywhere from 14 to 45 days.

Take note two things:

  • One: Single inquiries could still have a somewhat negative effect on your credit.
  • Two: This practice is only done by some credit score models and usually only applies to auto loans and mortgages, not credit cards.
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