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You can get dinged if they check your credit. That’s called an hard pull. Anything that tells the credit companies that you’re pursuing additional debt can trigger a credit response.
And to the credit companies, if you’re buying a car or home is pretty much assumed you’re shopping around. But if all of a sudden you’re having your credit pulled more times than what is considered normal, it hurts you because that’s sending a message that you’re not qualified to borrow whatever loan you’re trying to get.
soft pulls vs hard pulls. Hard pulls will affect your credit more dramatically.
Hard Inquiry vs. Soft Inquiry: What’s the Difference?
If you're thinking about applying for credit, here's what you need to know about the differences between hard and soft inquiries.
According to FICO, one hard inquiry will typically reduce your score by fewer than five points. However, multiple hard inquiries in a short period of time may have a compounding negative effect.
- Use the rate-shopping window. When shopping for a mortgage, auto loan or private student loan, research and apply within a specific timeframe (inside a two-week period if at all possible). This will ensure that the multiple inquiries are treated as a single inquiry, minimizing the impact on your credit score.
