Is Your Credit Score Affected When Applying for Mortgage?

Hello is your credit score affected by simply applying for a loan? Not the actual outcome so much but the applying for the loan?

Weird question I know but I have two mortgage brokers that I'm getting advice from and both going a different path with lenders, was keen to see what my borrowing capacity is with both of them but are mindful that my credit score could be impacted because of that.

Thanks in advance.

Comments

  • +2 votes

    Yes, every credit enquiry will affect your score in one way or another, regardless of whether you take the loan or not.

  • +2 votes

    Yep!
    Each time you apply for any form of credit. Loan, Credit Card, Overdraft, Mortgage, even a new mobile phone plan.
    It also depends on the provider as they may/may not check your rating (9/10 times they will).

    Keep in mind, if you are looking to check your score yourself, that will not cause any changes to your score - however, there are 3 main agencies in AU. So check all 3. Not all finance companies each one.

    Do a search on OzB - there was a couple of pages on CR's and credit cards just a week or so ago.

    Make sure you do your research before you apply and ask them to provide an offer (pre-review) based on the information you provide them. Give them a copy of your rating etc.
    This will not guarantee you an approved outcome but will give you a good idea, and don't inflate your circumstances. If it's uncovered, they may dump your application and then their enquiry will be listed as non approved and as such, have a negative impact and reduction to your score.

    •  

      Can you give me an idea on one of the 3, I'm getting mixed results on Google finding our a credit score agency

      •  

        Google: australia credit rating agencies

        "3 credit reporting bodies
        There are 3 credit reporting bodies in Australia – Experian, Equifax and Illion (formerly Dun and Bradstreet)."

        Hope this helps

        •  

          it does thank you

  • +2 votes

    A good broker should be able to work out your borrowing capacity without doing a credit check that hurts your credit score.

    A credit check should only be done when you’re actually applying for a loan.

  • +1 vote

    "Affecting" doesn't always mean it goes down. Each time I got a pre-approval, mortgage and refinance, my credit score went up.