Question:
My broker stated that my loan will be rejected if my credit score drop by one point, what I dont understand is that if I did little shopping around that my cause my credit to drop right so why are the bank is going to reject me because I want to shop around for a better rate. my credit is 680 right now, but I dont know if it drop or not
Answers:
almost every time someone does a credit check on you, your score can drop by a point. so if a lot of companies are running, it can really make an impact. do some research, pick maybe the top 3 companies, then submit apps. that way it has less of an impact. and yes, a company can deny you a loan, based on your score. they are assuming some risk, every time they give a loan.
Usally, if your applying for a Home or auto loan, To be protected, any loans that you apply for within a two week period will only count as one inquiry. So if you where shoping for a better rate, it will not hurt you to much in the long run. Careful how you use your credit cards also, running up a high balance will lower your credit score a bit also. Good luck.
The banks "think" you are getting an additional loan instead of just shopping for better rates.
kermit is the most correct.
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