Will I Be Penalized For Shopping Around For The Best Interest Rate? - CREDIT SCORE

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CREDIT SCORE: Will i be penalized for shopping around for the best interest rate?


Credit scores count every consumer-initiated credit application. Therefore, excessive applications for credit can adversely affect a score. However, it is becoming more common for risk score models to recognize when a consumer is shopping for the best rates and either ignore inquiries for a specific purpose within a period of time, or count multiple inquiries for a specific purpose as only one. This is most common in mortgage and auto lending. In such cases, shopping around will have little or no impact on a risk score.

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