Credit Score Protection throughout the Loan Acquisition Process

Credit scores aren't only important during the initial stages of aqcuiring a loan. Personal loans, vehicle loans, and especially home mortgages may all take some time to process -- sometimes upwards of weeks or months. A credit score will generally be checked throughout the lending process. Borrowers will need to protect their credit score to make sure that their loan Milford goes through smoothly.

Many borrowers will request loans from multiple lenders so that they can compare rates. When requesting the same type of loan from multiple vendors, only a single credit pull should be counted against credit. Borrowers should make sure that their credit pulls have been accurately recorded on their credit report as the same type of lending inquiry. Otherwise the initial credit score that the lender pulled may have gone down due to the initial credit requests. Each credit request (when not consolidated) can lower a borrower's credit score significantly, and the borrower could see their credit score continuing to lower as new credit pulls hit their report. 

Borrowers can lock their own credit report -- and, by association, their credit score -- by requesting a "freeze" with the credit agency. This freeze has to be requested with all of the three major credit reporting bureaus and there may be a small fee attached. Once a borrower's credit report has been locked, third parties can no longer access the credit report for new inquiries or credit lines. This effectively removes the possibility of accidentally damaging a credit line by procuring more credit, but it will not protect the borrower from complaints against their credit (such as accounts in default).

Behaviorally, borrowers should both make sure that their bills are paid on time and should avoid any new credit requests, however minor. This includes: store credit cards, new cellphone lines, vehicle loans, and credit line increases. Other credit inquiries that are often forgotten about include rental applications (with a credit and background check), background checks for new jobs, layaway plans, and other store financing. 

A loan officer can usually give a borrower more direction regarding their credit score requirements. Often there is a hard (and soft) cut off for credit scores, so a borrower will know exactly what score they need to maintain to keep their eligibility.