Credit Scores What Damages Them?
I have 3 rentals 4 loans including my home and 1 heloc. I haven't run my credit in awhile and someone told me those loans good really drop my score it used to be 790 just wondering what ya think?
I have had about 5 pulls of my credit over the past 90 days. As a result, my credit dropped from 790s to 750s. And, it turns out, there are MUCH better financing options for someone with a "high 700s" credit score as opposed to a mid-700s. My advice is do not have anyone pull your credit until you are ready to rock and roll.
Actually, if you pull your own credit, it will not drop the score. You are encouraged to pull and keep a check on your credit score and accounts.
However, it is correct that having companies pull your report does drop your credit score. Ihear about 10% for each type of credit application. If you are having a mortgage company pull your credit then go ahead and have several check if your are applying for credit, but do it quickly because you have about 15 days that it will not do any more damage. Only the first will affect the score. That goes for any type of credit that you may be applying for. This is to encourage people to shop around for the best rates.
I hope this was a clear explanation. Let me know if I can answer any more questions. Or, you can go to
www.myfico.com
you can pull your credit for about 12.95 with damaging it and it will explain the scoring process.
oops! typo...without damaging your score go to www.myfico.com. lol
copied from the website....
Not all inquiries count toward your FICO score.
When you check your credit report, you may notice that a number of credit inquiries have been made, sometimes from businesses that you don’t know. But the only inquiries that count toward your FICO score are the ones that result from your applications for new credit.
Inquiries that count toward your FICO score.
There is only one type of credit inquiry that counts toward your FICO score. When you apply for a mortgage, auto loan or other credit, you authorize the lender to request a copy of your credit report. These types of inquiries, prompted by your own actions, appear on your credit report and are included in your FICO score.
Inquiries that don’t count toward your FICO score.
Your own credit report requests, credit checks made by businesses to offer you goods or services, or inquiries made by businesses with whom you already have a credit account do not count toward your FICO score. Credit checks by prospective employers also do not count. These types of inquiries may appear on your credit report, but they are not included in your FICO score.
Your FICO score is not affected when you check your credit.
Checking your credit reports regularly to be sure they are accurate and error-free is a good idea. In fact, maintaining accurate credit reports is a part of good credit management, which can help to improve your FICO scores over time.
You can order all three of your credit reports with FICO scores at www.myFICO.com. You can also order your credit reports from the credit bureaus. Either way, your FICO score is not affected by your own credit report checks—which are voluntary.
How inquiries are factored into FICO scores.
There are five types of information used to calculate a FICO score at any given point in time. Each type of information counts as a percentage of a total FICO score:
Payment history = 35%
Amounts owed = 30%
Length of credit history = 15%
New credit = 10%
Types of credit in use = 10%
These percentages are based on the importance of the five categories for the general population. For particular groups, such as people with relatively short credit histories, the importance of the categories may differ.
Inquiries are a subset of the "new credit" category shown above, which accounts for 10% of the total FICO score. Their importance depends on the overall information in your credit report. For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your score. What's important is the mix of information, which varies from person to person, and for any one person over time.