Beware of Checking Your Credit Score Too Many Times

Curiosity can be a wonderful thing when it leads you to spend hours exploring subjects about which you know little on Wikipedia, while others are engaging in more expensive and less wholesome hobbies. While your peers are losing money on sports betting, buying overpriced nutritional supplements based on the recommendations of social media influencers, or spending money going on first dates with people who are just going to ghost them, you can learn all about the efforts of librarians to preserve the ancient manuscripts of the libraries of Timbuktu which have run the risk of destruction in recent wars or the chaotic life and mind-bending films of Rainer Werner Fassbinder. Sometimes, though, it is better not to let your curiosity get the better of you. For example, nothing good can ever come of Googling your own name, unless you have a common first name and last name and you want to find out who Google mistakes you for. If you want to find out about your ancestry, ask older family members to tell you what their elders told them instead of taking a consumer DNA test. Likewise, you should not run a credit check just because you are curious; the fewer times you check your credit score, the better. If your low credit score has prevented you from accessing loans, or if you suspect that this is why lenders keep denying your loan applications, contact a Philadelphia debt relief lawyer.

What Happens When a Prospective Lender Checks Your Credit Score Too Many Times?

Most lenders check a prospective borrower’s credit score before they agree to lend money. In fact, it is riskier to borrow from a lender that does not check your credit score than from a lender that does. Not checking borrowers’ credit scores before lending is a hallmark of a subprime loan; the lenders know that there is a substantial risk that you will not be able to repay the loan, so they charge you exorbitant fees to ensure that they get their money anyway.

Too many credit checks in a short span of time can lower your credit score. When you borrow an auto loan from a dealership, the dealer often prices shops with several lenders before choosing the most affordable loan. This means that each lender might run a separate credit check, which could be an unflattering look for your credit report. Lenders and dealers should be transparent with you about credit checks before you consent to them, and you should read the consent form carefully before you sign. If the process lowers your credit score, you can dispute it with the credit bureau and ask them to count the multiple credit checks for the same loan as only one credit check.

Contact Louis S. Schwartz About Credit Score Angst

A Philadelphia consumer law attorney can help you if you need a car loan but are worried about your credit score.  Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.

Source:

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