Multiple inquiries on credit are not as bad as you think

Often times our customers are hesitant to grant us permission to access a new credit report for them because of concerns that it will hurt their credit score.  The problem with not reviewing a client’s credit history and credit score is that we end up proposing mortgage options that may change once we do pull a credit report.  When we’re unable to deliver on our proposal it is not only frustrating for our clients but also ourselves because we try to take great care of our reputation.


I came across an article on Inman News by Dian Hymer in which she helps explain why for most people allowing multiple lenders to pull a credit report WILL NOT impact their credit score to the point where it will adversely impact the terms they are receiving on the loan.


Among her points that I like:

  • “The FICO credit-scoring model ignores all mortgage inquiries made within the last 30 days, so they will have no impact on your score.”
  • The number of new inquiries is counted towards the “new credit” factor in determining your credit score.  The “new credit” factor makes up ONLY 10% of the equation. 


You may view the article yourself by visiting this link.