My credit had 4 hard hits by one company in 26 days, what"s the purpose of so many hits in that little time

Question

My mortgage broker was trying to find a finance company for me.
My credit had 4 hard hits from one company and 2 from another
in about 26 days. All of these hit dropped my credit score drasticly.
I know the lower your credit score, the higher the interest rate and
at the same time, the broker can raise there fees(points).I"m not
saying that something illegal happened, but I would like to know
if this is common practice or shady practice.

Answer 1

As a professional credit advisor, I hear this complaint all the time. This is a real problem especially with automobile sales companies. However, I have no hard evidence that this practice is intended to lower your score in order to charge you higher interest rates. I do know that Fair Isaacs, the company that created the program credit reporting agencies use to determine your FICO score, is working on a way to help solve this issue. Their goal is to take into consideration the type of business looking into your credit. For instance, if your credit profile is looked at by several different mortgage companies within a relatively short period of time, the program will take that into consideration and assume that you are shopping around for the best mortgage rate offer. Then the program will consider multiple hits from mortgage lenders as a single hit thus reducing the impact to your credit score. It is my understanding from what I have read on the subject and from conversations with the many mortgage lenders with whom I do business, that this update will be taking effect soon. How soon, no one knows.

If you have any further questions regarding your credit issues, please feel free to email me at [e-mail]

I hope I have been of some help to you.

Answer 2

First off, when you are looking for mortgage lenders, you need to be careful how many inquiries are done and in what time frame. 26 days is relatively spread out. I know that if you are looking for a mortgage, generally the credit bureaus count the multiple inquiries made w/in a 2 week period as 1 hard inquiry. As to not lower your score. If this did have that big of an affect, I would contact the credit bureau and the company who made the inquiries. I find it slightly odd that the same company would do a hard inquiry 4 times. I don't think this is common practice or shady, but definitely out of the norm.

Answer 3

call the credit agencies and contest this i did.
This happened to me on a car. loan.
I told this i only consented and specified to pull credit report one time. I got them removed.
I keep doing this till they removed these offensive items.

I am very careful now! I keep a very close watch on my credit report.
I have gold credit watch from equafax and it works for me
i check my credit weekly no joke.
Only 9.95 a month .
I spend more than that on soft drinks!'
Makes you mad,
I would check out David Ramsey site One of is recommendations is Capitol mortgage in Tennessee
Knowledge is power!
u learned a hard lesson now apply it and try not to repeat it

God bless

Answer 4

common practice....unfortunately