I'm appalled at the lack of knowledge that many people have about the repercussions of having their credit pulled frequently! It actually frightens me to see so many people unknowingly harm their credit by this and so I warn and caution you about this.
Your credit score is a critical piece to any financing that you are attempting to get, mortgage or otherwise. Do NOT let everyone you speak with when looking for financing pull your credit. I'll say it once again..... do NOT let multiple people pull your credit bureau!
I'll use an example of a ficticous party here... Let's imagine a scenario that a year ago their credit scores were in the mid 700's and mid 600 range. They've been busy and had 15 - 20 inquiries into their credit files in the past few months. The result ? Today theses scores would be reduced to a low 600 range for the first party and a mid 500 range for the second party, due to sheer ignorance. Pure and simple ignornance and lack of knowledge about the repercussions of having so many people pulling their credit. They literally shot themselves in the proverbial foot and destroyed their credit at the same time.
Often people don't even realize that they when they have spoken with someone and given out their social insurance number to them, that their credit will be pulled, Amazingly often a person doesn't even recognize many of the people who have pulled their credit bureaus. I've been told, "well, my husband was online looking at cars on all these sites and just entered his Social Insurance Number"....... never realizing that by doing so he was allowing them to pull his credit while he was online shopping for cars and getting prices.
And don't get me started on the 'rate shoppers' affect of going to 10 different mortgage brokers to find mortgage financing and each one pulling their credit and effectively lowering their credit scores each and every time!!! Consumers need to be educated on how this will lower their credit scores thereby lowering their ability to get the most advantageous and cost effective mortgage financing in the market. Sometimes even making it impossible to get any kind of financing or refinancing when they need it. I won't even go into the morality and ethics of going to 10 different brokers and wasting the brokers time, efforts, and money on that particular game. And yes, it actually costs a broker money to pull those credit bureaus, a cost ads up pretty quickly.
Guard your personal credit file like gold! The immediate and direct result of too many credit reports being pulled is a quick reduction in your credit score which will reflect in higher interest and borrowing costs to you.
And if you are serious about getting a mortgage to buy that dream home or refinancing your existing mortgage and paying off some debt, give me a call or apply online!
Mary is passionate about health & well-being, physically, emotionally & spiritually & is the founder of www.VibrantHealthandProsperity.com.
Mary Wozny is an author, speaker, coach & trainer, showing people how to become vibrantly healthy & wealthy while working for themselves &
creating residual streams of income. Mary is a Mortgage Consultant in Canada, licenced under FISCO & a member of the Canadian Association of
Accredited Mortgage Professionals. Contact Mary at www.MaryWozny.com.
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