{"id":355650,"date":"2018-01-03T17:00:27","date_gmt":"2018-01-04T00:00:27","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=355650"},"modified":"2022-08-04T11:48:32","modified_gmt":"2022-08-04T17:48:32","slug":"will-comparing-loans-affect-my-credit-score","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/lending\/will-comparing-loans-affect-my-credit-score\/","title":{"rendered":"Will Comparing Loans Affect My Credit Score?"},"content":{"rendered":"

\"Comparing<\/p>\n

For those of us shopping around for the best rates on a mortgage or other loan, a common question is: will comparing loans affect my credit score?<\/span><\/p>\n

The short answer is: it depends. The long answer requires a more in-depth explanation.<\/span><\/p>\n

Understanding hard and soft credit checks<\/strong><\/h2>\n

First, it\u2019s important to understand <\/span>the difference between a soft credit check and a hard credit check<\/span><\/a>. <\/span><\/p>\n

A <\/span>soft credit check<\/b> (sometimes called a soft inquiry or soft pull) is a preliminary way for a creditor to figure out where you stand financially. By listing your name, birthdate, income, and estimated credit score, you may get a general estimate of what to expect from a loan rate. Reviewing your own credit history is also categorized as a soft inquiry, which may be helpful to know when working on <\/span>fixing your credit<\/span><\/i> score<\/span><\/a>. Importantly, a soft credit check <\/span>does not<\/span><\/i> impact your credit score.<\/span><\/p>\n

A <\/span>hard credit check<\/b> (a hard inquiry or hard pull) will require your social security number, and possibly proof of income. Hard inquiries <\/span>do<\/span><\/i> affect your credit score, but are a better, more accurate way for a creditor to discern whether or not you qualify for a loan. Usually in a hard inquiry, a banker has accessed your credit score and credit history.<\/span><\/p>\n

If you\u2019re not sure which type of inquiry will be performed, it is usually safe to assume that any time your social security number is requested, a hard inquiry will be performed at some point in the immediate future. Before that, any rate estimate you receive is just that: an estimate. When you receive <\/span>\u201cpre-approved\u201d offers<\/span> in the mail from various lending institutions, that does not mean anyone has run a hard credit check. In fact, for the most part, it is illegal to run a hard credit inquiry without your express consent.<\/span><\/p>\n

So, when shopping for the best rate on a loan, here are a few tips:<\/span><\/p>\n