How To Dispute Hard Inquiries
If theres an incorrect, outdated or unverifiable item on your credit report, you may be able to file a dispute with the credit bureau or the company that sent the information to the bureau and get it removed. Disputing items that are hurting your credit scores could be one way to quickly increase your scores.
A Dispute Wont Always Remove Hard Inquiries
A negative item will only be removed from your credit report if you file the dispute and the credit bureau or data furnisher finds that the item was indeed incorrect, outdated or the organization cant verify the item.
Since an inquiry is a record of when someone checked your account, not when you opened a new account, a hard inquiry from a declined application isnt an error and you may not be able to successfully dispute it.
You may also find multiple hard inquiries for an auto loan or mortgage on your reports if you recently applied for an auto loan or mortgage with a dealership or broker. Its not uncommon for a dealer or broker to submit multiple applications for you in an attempt to find a loan with the lowest interest rate and best terms. These may be valid, and you dont need to worry too much about these, as theyll generally occur with the dedupe window.
In some cases, you may see a hard inquiry from a financial organization you dont recognize, but that may not be an error either. The company you apply for credit might have a parent company, or a different associated company, that funds the account and checks applicants credit.
When You Pay Off Your Mortgage
When you make your final mortgage payment and own your home free and clear, what will happen to your credit? The loan will be marked closed in good standing on your credit report for 10 years. As for your credit score, dont expect any dramatic change.
Closing a mortgage has very little impact on your credit score, unlike closing a revolving credit card, which can hurt your score by reducing your available credit. However, you may see a drop if the mortgage was your only installment loan, as it will impact your credit mix.
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You Can Use Lendingtree To Improve Your Credit Score
After years of working to improve my credit score, I’m finally in the 700s. That makes life so much easier I know that if I need financing, I’ll be able to get it without having to explain myself or pay a super high interest rate.
When I was working to improve my score, I scoured the internet for ways to boost it. So, I know firsthand how important a product like My LendingTree can be.
This portion of the site lets you monitor your credit score for free, without affecting your credit. It also gives you tips on how to improve your score so that you can get the best rate on loans.
For example, the site mentioned that my shorter credit history and percentage of credit used were pulling my score down, so I know those are areas to work on.
Some of us know exactly what we’re doing financially. But most of us can always use a bit of extra guidance. Using a service like LendingTree, which makes it easier to make smart financial decisions quickly, can help you make the most of your finances.
Which Lender Is Better Lending Tree Or Upstart
Lending Tree has over two decades of experience, and its interest rates start low. Hence, Lending Tree has the edge over Upstart in that area. Lending Tree has a mobile application that makes managing finances easy, whereas Upstart does not have that option.
Both share a lot in common while also having some significant differences. Lending Tree is a good choice if you want a flexible repayment plan, whereas Upstart works with borrowers who might not have the best credit and offer quick access to borrowed funds.
If you want to research and obtain an installment loan through a referral service, Lending Tree has a solid reputation and is a reliable choice. At the same time, thousands of people have used Upstart to obtain loans fast. In a nutshell, Upstart excels at installment loans. It’s encouraging to see a lender assess your overall borrowing situation, including your educational background and employment prospects, to see if you qualify.
No one can argue with Upstart’s devoted following of satisfied customers. Our top rating goes to Upstart for its innovative approach to lending, low-interest rates, and keeping clients happy.
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A New Auto Loan May Lower The Average Age Of All Your Accounts
The length of your credit history and the average age of your accounts make up 15% of your FICO score.
When you open a new loan or credit card, the average age of your accounts will fall slightly. If you have multiple accounts for decades, the hit will be very slight. But if you only have one or two accounts, it could have a bigger impact.
For instance, lets say youve held two credit cards for 20 years, and three others for 18, 16, and 15 years. You also took out a mortgage 17 years ago. The average age of your accounts is 17.6 years . When you open a new car loan, that average will drop to about 15 years still well over a decade.
But if youre new to credit and only have two credit cards that you opened a year ago, and you get an auto loan, the average length of your accounts drops in half, from one year to six months.
Lending Tree Eligibility Criteria
- Give details about the loan’s purpose
- Indicate how much money you want to borrow and when you need it sent.
- Give your name, address, birth date, social security number, and information about your income.
- Cite your income proof and other financial details.
- Information such as your credit score, payment history, income, and debt-to-income ratio are required.
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Do Mortgage Quotes Affect Credit Scores
- You can request free mortgage quotes from lenders without them pulling credit
- This will have absolutely no effect on your credit scores since youre only giving them a verbal estimate
- They may tell you that your credit scores could differ but its a perfectly fine starting point
- Once youve gathered several quotes you can take things a step further and let them run your credit if you wish to move forward
Weve discussed mortgage inquiries, but what about simple mortgage quotes?
Well, as long as the lender doesnt actually pull your credit, or uses a service that only results in a soft inquiry, it wont affect your credit in the slightest.
Assuming youre just calling around and comparing rates from lender to lender, or broker to broker, your credit will remain untouched.
Theres nothing wrong with just giving these folks a ballpark FICO score and seeing what rates they quote you.
Sure, your actual credit scores may fluctuate if and when you apply, but its pretty easy to check your credit for free these days and use that as an estimate.
Your actual scores shouldnt be too different since these free services come straight from the credit bureaus, so this is a fine alternative to shop without letting lenders dig into your actual credit report and scores.
Once you have a better idea of which mortgage lender you want to move forward with, you can let them pull your actual credit report and lock in pricing.
What If Your Credit Score Goes Down Before Applying For A Mortgage
- Its possible to be negatively impacted by a credit inquiry such as a mortgage application
- It can push you below a key credit scoring threshold, such as from 625 to 619
- This could make you ineligible for a home loan or increase your interest rate
- In this case you could ask for an exception or take action to boost your scores
There are cases where a credit score just a few points lower could actually result in a higher mortgage rate, or completely jeopardize your loan application.
Want a fast, free rate quote? Quickly get matched with a top mortgage lender today!
For example, a 620 FICO score is the general cutoff for Fannie Mae- and Freddie Mac-backed mortgages.
If for some reason one of your scores dropped from 625 to 619 just as you applied, you could be out of luck.
Assuming you find yourself right below a certain credit scoring threshold, you may be able to use an older credit report if all the information is the same other than the mortgage inquiries.
Or you can ask for an exception from the lender if theres a clear and compelling reason.
After all, it wouldnt be fair to penalize you simply for shopping around for the lowest mortgage rate, now would it?
Alternatively, you could take a few quick actions to boost your scores, such as paying off some debt to reduce your credit utilization.
Then look into a rapid rescore. Your loan officer or mortgage broker should have skills in this department to help.
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Why Should I Consider Taking Out A Loan With Lendingtree
- Multiple options available. LendingTree can help connect you with a lender no matter what stage of life youre in from taking out a student loan to buying your first home.
- Theres no obligation or fee. Offers presented on LendingTree are just that offers. Browsing on LendingTree doesnt mean youre locked into taking out a loan, and you can stop using the site at any time without paying anything. And even if you find a lender, you can still opt out before you sign any paperwork.
- Learn your credit score. If youd like to find out your credit score, you can do so for free through LendingTree. This can help you discover which loan products best suit you and which youd be better off not applying for.
Soft Inquiries Only Appear On Credit Reports That You Request
If you request a copy of one of your credit reports, you may see that the hard and soft inquiries are located in different sections of the report. The names of the sections can vary depending on the credit bureau and the service you use to check your credit.
For instance, the hard inquiries might be labeled hard inquiries, or they could be called credit inquiries, requests for your credit or regular inquiries. The soft inquiries might be under a section called soft inquiries, requests viewed only by you, promotional inquiries or a similar name.
Soft inquiries only show up on copies of your credit reports that you request. If someone else checks your credit with either a hard or soft pull, the credit bureau will send them a credit report that only lists hard inquiries from the last two years.
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How Do Inquiries For Mortgages Auto Loans And Other Loans Impact Your Credit Score
Hard credit inquiries, like other information on your credit reports, are seen by the major consumer credit scoring models, FICO® and VantageScore®. Having multiple hard inquiries within a short period of time can be predictive of credit risk, so having too many inquiries for different types of credit can result in a lower credit score.
While all hard inquiries resulting from loan applications were once considered separate events by credit scoring models, that hasn’t been the case for many years. FICO® and VantageScore have evolved in their treatment of multiple inquiries as a way to avoid unfairly penalizing a consumer for being a smart rate shopper.
In the contemporary versions of FICO®’s credit scores, for example, hard inquiries related to mortgage, auto loan and student loan applications are entirely ignored for 30 days from the date of the inquiry. So if you settle on a loan during that 30-day time period, your scores will not be affected by inquiries.
After those inquiries have aged past 30 days, they still may not be counted as independent inquiries by credit scoring models. That’s because FICO® considers similar loan-related inquiries that have occurred within 45 days of each other as a single inquiry in the scoring process.
In VantageScore’s credit scoring systems, all hard inquiries that occur within 14 days of each other are considered as one inquiry for the scoring process. This applies to all hard inquiries, regardless of the lender.
An Inquiry On One Report Wont Influence Credit Scores Based On Other Reports
A credit score depends on the information in one of your credit reports, but it isnt affected by your credit reports from the other two bureaus. Although major lenders often report your accounts and payments to all three credit bureaus, a creditor may only check one of your credit reports before making a lending decision.
As a result, a hard credit inquiry could show up on one of your reports, but not the others. When thats the case, it will only potentially impact credit scores that are based on the report that has the inquiry.
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Is Lendingtree A Good Choice
In all fairness, LendingTree has been able to survive for almost 20 years with a minimum of controversy. If youre looking for one-stop shopping for loans or credit and have a decent or better credit score, LendingTree appears to be a convenient way to receive multiple bids from lenders.
It may be easier to get a personal loan or other types of credit from LendingTree than it is from a bank, but youll expect to pay a higher APR for this greater acceptance rate. LendingTree fees will cost you money one way or another, and you may feel harassed by lender spam.
In the end, LendingTree is a useful service that allows you to conveniently compare rates from competing lenders, thereby boosting your chances of finding the best possible deal for your situation.
Are you looking for a mortgage?
With Credible, you can see your actual rates from our partner mortgage lenders in the table below in three minutes. And unlike LendingTree, once you choose the option you like most, Credible can take you all the way from origination to closing your loan.
Why Checking Your Own Credit Is Smart
While a credit check when you apply for credit can cause your score to dip, checking your own credit has no effect on your score.
Its perfectly safe, and it’s a great way to know ahead of time what a lender will see and whether you are likely to qualify.
About the authors:Bev O’Shea is a former credit writer at NerdWallet. Her work has appeared in the New York Times, Washington Post, MarketWatch and elsewhere.Read more
Anisha Sekar is a former personal finance writer for NerdWallet. She has worked for Silicon Valley startups and in the public sector. She studied applied mathematics and economics at Brown University.Read more
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What Types Of Loans Does Lendingtree Offer
Heres a quick rundown of what types of loans and products you can find through LendingTree:
|Type of loan|
- Motorcycle loans
Small business loans
The lenders LendingTree works with offer a variety of business loans. And with no upfront fees and a minimal focus on personal credit, you may be able to get the financing your business needs without much hassle or long applications.
Need help paying for school? LendingTree has lenders that offer students loans with APRs as low as 3%. It has a huge network of lenders, many of which accept cosigners, so youll have plenty of options when youre looking to finance your education.
Home mortgages and refinancing
LendingTree has lenders that offer both mortgages and mortgage loan refinancing. Like all of its options, the exact terms you qualify for will vary, but your options include:
What Credit Score Does Lendingtree Use
Your credit score will vary depending on which of the three credit bureaus Equifax, Experian and TransUnion is used. To simplify this confusion, the three main credit bureaus partnered together to create the VantageScore. LendingTree provides you with the most recent version of this credit score: VantageScore 3.
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What You Need To Know About Lending Tree
- Lending Tree is not a lender, but a third-party service pairing applicants with lenders
- Lending Tree asks for the borrowers information to send to multiple companies, bankers and/or mortgage brokers
- You will be contacted by these companies individually after having submitted an application via Lending Tree
A Lending Tree application will include the following information:
- Borrower lending needs
- Type of property or vehicle to be purchased
- Whether the home to be purchased is a primary or secondary residence
- Estimated purchase price of the property or vehicle
- The borrowers estimation of their own credit score
- How much down payment you will make
- How soon you plan to buy
Here’s A Way To Get Competing Quotes From Several Lenders
A consumer in search of a mortgage has several options. They can visit a local bank or credit union, go to a direct mortgage lender such as Quicken Loans, or try to obtain multiple loan offers simultaneously by using a site like LendingTree.
For individuals looking to shop around for their home loan in relatively little time, the LendingTree route is one you may want to consider. The company doesn’t offer mortgages itself but rather acts as a lead generator for a vast array of lenders in its network. When creditworthy customers submit their request for a loan, they are likely to obtain offers from a handful of those participating lenders within minutes.
As long as you understand how to navigate the processwhich will keep lenders from calling and emailing you to secure your businessit’s a quick way to see what rates you qualify for so you can potentially proceed with a formal loan application.
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