Hard Pulls - LOTS of them

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ubengineering
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Hard Pulls - LOTS of them

Postby ubengineering » Thu May 08, 2014 5:41 pm

Hello all! First post, new to this forum but not forums in general. Tried searching google and here before posting this question, so here it goes.

I'm currently 25 years old and have a great career and awesome credit. Between the three bureaus I range from 774-782. I monitor my credit with LifeLock and FreeCreditReport.com, and have been since I was 19.

So here's the problem, I'm finally moving out of my parents home after saving and saving and saving.

I currently have 1 Hard Inquiry on my report, but because of my moving situation I need to apply for the following in a very short period of time:

- Mortgage
- Renew the lease on my car
- Get off family cell phone plan
- Order DirecTV in my new home
- Utilities for my new home
- Purchase a sports car I've wanted for some time (this will probably be on the back burner until all the other stuff is done)

Granted, not to sound like a snob, I have enough saved that I could pay cash for the home and cars that I want, but I'm not willing to give up 150k+ of liquid assets to avoid credit checks. If something terrible were to happen, I want to have that money in the bank.

So according to FreeCreditReport's score planner, if I have 6 hard pulls on my account, my credit score is going to drop 40 points.

I currently have Verizon, but I'm considering T-mobile's no contract option, even though their service might not be as great. At least that's one credit check I can get out of.

So I know when people shop for rates such as homes or cars, multiple credit pulls count as one...

But my dilemma is, if I have have six of these DIFFERENT types of credit pulls, do they count as one and my score remains the SAME?

Or do I just have to say F-it and have a lower score for the next three years.

Gurus please advise!

Thanks!

- Mike


MemberSince99
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Postby MemberSince99 » Fri May 09, 2014 12:35 pm

They will count as separate pulls for scoring purposes. The only way it lumps inquiries together for the purposes of your score is multiples within a given time period (I think it's 30 days can't remember) for a mortgage or auto loan, because they realize you are probably shopping rates.


So, if you do that, all the hard pulls you take will count against your score.

thom02099
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Postby thom02099 » Fri May 09, 2014 9:42 pm

ubengineering wrote:Or do I just have to say F-it and have a lower score for the next three years.



Dunno where you think you'll have a lower score for 3 years. Inquiries stay on your credit report for 2 years. They are not counted on your FICO score after 1 year. The impact from month 6 to month 12 become exponentially less each month. The "ding" is in the first 6 months.

Timing is everything. DO NOT apply for ANYTHING, or DO ANYTHING credit wise for at least 6 months prior to applying for a mortgage. Mortgage lenders get real antsy if they see credit apps prior to getting a mortgage. If some of the items on your list can wait until after you get a mortgage and CLOSE ON IT, then let them wait. Fancy smancy car should be last on your list.
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thom02099
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Postby thom02099 » Fri May 09, 2014 9:56 pm

[color="red"]I'm currently 25 years old and have a great career and awesome credit. Between the three bureaus I range from 774-782. I monitor my credit with LifeLock and FreeCreditReport.com, and have been since I was 19.[/color]

What's the source of those scores? If you're relying on FreeCreditReport.com, that is a FAKO score; it is not a FICO score. Prior to shopping for a mortgage you need to get your FICO scores, from MyFICO.com. The Experian and Equifax models used there are the most recent. The Transunion score, for now, is TU98, a very old model that practically no one uses. MyFICO officials indicate that they are in negotiations to upgrade TU to the latest/08 model, and that should be accomplished sometime this summer. In the meantime, there are other sources for getting a TU FICO score, most notably Discover, which provides the TU08 score on each monthly statement. I'm not encouraging you to apply for a Discover card, just to make you aware of a source, if you SHOULD decide to apply for a Discover card 6-12 months before applying for a mortgage. But I digress.

My point is, get your FICO score, so you have a baseline/benchmark to start with. Your EQ score should match up with a mortgage broker's pull, if they are using the EQ08/Beacon 9.0 version. It's a bit more generous than the previous Beacon 5.0 version. EX from most lenders will be an 04 version, but more are moving toward the 08 version. There could be discrepancies, but the 08 version is usually more generous.
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tigerowl06
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Postby tigerowl06 » Fri May 09, 2014 10:55 pm

Go for the mortgage first, if possible. That one could be sensitive. After that, the people leasing you your current car, or who will give you a cell phone plan, or DirectTV will not give a crap about inquiries, only baddies. Maybe best to wait a year after this stuff to go for the sports car. It'll help you get some more money together too anyway. Buying the car outright is not a bad idea; if you have a mortgage, you don't have any need for a car loan to build credit. The mortgage is the bigger deal (and it's tax advantaged to boot).
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takeshi
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Postby takeshi » Mon May 12, 2014 10:18 am

tigerowl06 wrote:Go for the mortgage first, if possible. That one could be sensitive. After that, the people leasing you your current car, or who will give you a cell phone plan, or DirectTV will not give a crap about inquiries, only baddies.

^ This.

Why is the OP switching carriers? Moving off the family plan? Is sticking with VZW not an option to eliminate one of the pulls?

ubengineering wrote:I'm considering T-mobile's no contract option, even though their service might not be as great.

You'd have to compare real world coverage where you need it since coverage varies. There are a lot of places where TMO has excellent coverage. One of my old neighborhoods was not one of those places though...

ubengineering
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Postby ubengineering » Mon May 12, 2014 5:53 pm

thom02099 wrote:What's the source of those scores? If you're relying on FreeCreditReport.com, that is a FAKO score; it is not a FICO score. Prior to shopping for a mortgage you need to get your FICO scores, from MyFICO.com.


You know I was wondering about that. When I went to lease my last car I checked my score on their site and it was 740ish. When I went to lease the car they told me it was 802. Looks like this is the last month for FCR lol!

Thanks for all the info you guys. Maybe I will hold off until next year for the mortgage even though I kind of want to leave home. My lease is up in a month and unless I buy the car outright, which I don't want to, I'll have to re-lease another car, which requires a credit check.

ubengineering
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Postby ubengineering » Mon May 12, 2014 6:08 pm

FYI, just signed up for the FICO score, rates me at 796, 22 points higher! I'll be canceling FCR shortly.

thom02099
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Postby thom02099 » Tue May 13, 2014 9:34 am

ubengineering wrote:FYI, just signed up for the FICO score, rates me at 796, 22 points higher! I'll be canceling FCR shortly.


Great score! Presumably, that's your Equifax score? You might want to consider getting your Experian score there as well, since it's the 08/latest model and seems to have some relaxed standards for scoring. Don't waste your time/money on the Transunion score for now, it's an outdated model that practically no one uses; it will be updated, however, sometime in the not-too-distant future, according the MyFICO admin folks.
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ubengineering
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Postby ubengineering » Tue May 13, 2014 5:15 pm

Well as of now I have no inquiries on my report, at the end of the month I will have to turn in my lease and get another vehicle, so that is one, and the mortgage will be another, and unfortunately, my cell phone. So I guess 3 isn't the end of the world. According to their score predictor software I will drop around 12 points.



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