Mortgage Revived

Your credit score changes every thirty days hence you should periodically check it to ensureaccuracy. Each one of your creditors reports your monthly pay habits and fluctuations in the amounts you owe them. Since creditors report any changes with your credit report every 30 days, you should probably check your credit once quarterly.

You’re probably thinking why in the world would I want to check my credit every three months. Well consider this possible scenario: your mortgage  company accidentally reports a late payment on your credit report, and you actually weren’t late.Because of this mistake on your creditor’s behalf, your credit score just dropped a hundred points. Now you find yourself at a car dealership that lured you in on the zero percent financing offer and because you weren’t monitoring your credit report you don’t qualify for the special offer. This creditor’s mistake just kept you from getting an interest free loan. Several don’t realize that this is a common mistake.

Many people think that checking their credit this often will hurt it. This is completely false. There are two types of inquiries. A “hard inquiry” is when you apply for credit and the creditor pulls your credit report. This type of inquiry can have a negative impact on your credit rating. When more than four hard inquiries are reported within a 2 month period you could see a drop. There’s a grace period of two weeks when shopping for a mortgage, or a car. The scoring system understands that most people will shop around for the best deal and therefore difficult pulls within a two week window are counted as one.

A “soft inquiry” is when an existing creditor grabs your credit to approve you for special offers or you request a credit report yourself through one of our affiliates. Soft inquiries don’t lower your score so there’s no reason not to take control of your credit report.

Save yourself the potential embarrassment of a credit denial but more importantly make sure you’re getting the best terms on loans by having great credit.