Will Shopping Around For The Best Rate Hurt Your Credit Score?

If your credit is in good condition, you can enjoy many benefits such as…

  • Low interest rates
  • Low down payments
  • And, favorable credit terms.

Depending on how good your score is you can potentially save a lot of money.

But, when you’re ready for the best deal on a mortgage or auto loan, you have to shop around. This can seem limiting because if you shop around for the best rates, it may adversely affect your credit scores.

So, how do you get around that? First, it’s discovering whether or not rate shopping will hurt your credit score or not.  The answer will truly depend on particular circumstances. Each time you check for credit, you are hit with a hard inquiry. This affects your credit score negatively. What’s the biggest advice in this case? Don’t move from lender to lender in a small window period when shopping around for credit.

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