When you are ready for a big purchase, shopping around for the best rate for you and your family is a very important step that can save you thousands of dollars. But isn’t it true that your credit report can suffer a penalty by being checked by lenders too often? Don’t worry. There are ways to get the best deal without sacrificing your hard-earned
credit score, and it’s all explained in the new article, “
Will Interest Rate Shopping Hurt My Credit Score?” on the Equifax Finance Blog.
Shopping around for interest rates isn’t necessarily going to hurt your credit score. For instance, when you are comparing rates, keep the following in mind:
- Apply for the same type of loan for the same amount. It will be obvious to reporting agencies that when five lenders pull your credit for a $300,000 mortgage loan, you’re comparing rates, not buying five $300,000 homes.
- Figure out when your moment is, and capitalize on the 30-day grace period for multiple credit report checks. Planning ahead can keep you safe, as lenders may take some time to actually pull your numbers and be ready to offer you rates.
- Do not apply for other types of credit during this time period. Applying for too many loans or lines of credit at once could make you look like a high risk to creditors.
With these three big tips in mind, you can be a careful borrower and avoid problems on your credit report. For more great
money management tips and to vote on which YouTube video is the most helpful for learning about personal finance, check out the Equifax Finance Blog!