Written by Phoebe Chongchua
Many homebuyers frequently wonder, “If I am shopping for a home loan will my credit be affected each time a credit report inquiry is made?” It’s a logical and intelligent question to ask; the answer is: not significantly, if the credit checks are done in a short period of time.
When a credit check is made by a potential lender it is called a hard inquiry. When a hard inquiry occurs it does have an impact on your credit score. However, when you’re shopping for a mortgage or a car loan, credit bureaus typically cluster the hard inquiries together because the credit reporting bureaus understand that the consumer is shopping for the best loan.
“So for example, if you’re shopping for a new mortgage and three potential lenders pull your credit score within three weeks, that is looked at as one inquiry for that purpose,” says Steven Katz a spokesperson for TransUnion’s TrueCredit.com . Keeping your credit clean is critical. Katz offers the following advice to help ensure healthy credit.

• One card you should not carry: Leave your Social Security card at home. “There is basically no reason that you need to carry that with you,” says Katz. Most people have their Social Security card number memorized. If you’re not one of those people, then only carry your card with you when you know you need the information on it. Your Social Security card number contains personal information that if it gets into the wrong hands, can cause major credit dilemmas.
• Lock it up: Apartment complexes and condominiums typically have locking mailboxes, but these types of secure mailboxes aren’t as common in residential, single-family neighborhoods. “If at all possible, people should have a locking mailbox,” says Katz, "mailboxes with locking devices are becoming more popular at hardware stores because identity theft is spreading". Taking precaution to protect your personal information can save you months of agony.

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