Credit Scoring Tips

The Holiday Shopping Season is upon us and shoppers should think twice about the popular "Open A Charge Card, Save 20%" promotion. The short-term savings may be tempting, but the long-term costs to a budget may be huge.

There is a persistent belief among Americans that "having your credit pulled" by mortgage lender is a bad thing. However, a mortgage credit inquiry is estimated to lower a credit score by 5 points or fewer.

There is a persistent belief among Americans that "having your credit pulled" by mortgage lender is a bad thing. However, a mortgage credit inquiry is estimated to lower a credit score by 5 points or fewer.

There is a persistent belief among Americans that "having your credit pulled" by mortgage lender is a bad thing. However, a mortgage credit inquiry is estimated to lower a credit score by 5 points or fewer.

There is a persistent belief among Americans that "having your credit pulled" by mortgage lender is a bad thing. However, a mortgage credit inquiry is estimated to lower a credit score by 5 points or fewer.

Credit scoring is a huge part of the mortgage world. A given credit score can mean the difference between a 5 percent rate and a 6 percent rate; a conventional mortgage and an FHA mortgage; an underwriting approval and an underwriting denial. And yet, there's a persistent belief among Americans that "having your credit checked" is a bad thing. In some instances, yes. In most instances, though, no.