Hard pull credit inquires will hurt your credit scores

Hard Pull Inquiries

Hard Pull Credit Inquiries

If you are planning on applying for a mortgage loan, apply for an automobile loan, or apply for a credit card, the creditor will pull your credit.  There are two types of credit pulls.  A soft pull credit check and a hard pull credit check.   Hard pull credit inquiries will hurt your credit scores.  Every time you apply for credit cards, the credit card companies will do hard pull credit inquires.  Each hard pull credit inquiries will drop your scores by two points.  However, the more devastating effect is not the drop in credit scores, but the hard pull credit inquiries will show up on your credit record and remain there.  If you decide to apply to a bunch of credit card companies all at the same time, all the hard pull credit inquires will show up on your credit report.

Too many hard pull credit inquiries will raise red flags to potential creditors

If you have a bunch of hard pull credit inquiries all at the same time, this will raise red flags on creditors.  They will wonder why you are applying for a bunch of credit at the same time and will suspect that you are desperately seeking credit.   Although your credit scores might not have been affected too much, too many hard pull credit inquiries will cause suspicion and the chances are that the credit grantor will deny your loan.

Strategy in applying for new credit

Although hard pull credit inquiries are not good, this does not mean that a consumer should apply for new credit.  You can apply for a new credit card or department store credit card or gas credit card but do not apply for them all at the same time.  Spread them out throughout many months.  You should not apply for more than 3 new credit tradelines in any six month period.  You should absolutely avoid in applying for more than 3 new credit tradelines in any 30 day period.

Soft credit pull

A soft credit pull is a credit inquiry that will show up on your credit record but will not affect your credit scores.  Most mortgage companies and banks will do a soft credit pull when you apply for a mortgage.  Most creditors will understand when they see more than 3 credit inquiries in your credit report by a mortgage company within a 30 day time frame because they will assume you are shopping for a mortgage loan.  Make sure if at all possible that when you apply for new credit to see if the creditor can do a soft credit pull.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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