Pre-Approval: Does it Hurt My Credit Score?

Nov 12, 2020

One of the most common questions we are asked when going through the pre-approval process: Will this hurt my credit score?


It’s a fair question. The reason many people ask if a pre-approval will hurt their credit score is due to the fact that typically a hard credit check, may slightly negatively impact your credit score. For reference, a hard credit check is something that would happen if you were say applying for a mortgage or a student loan. It gives a full breakdown of everything about your credit in one report. A soft credit check would be used for something like an application for insurance and does not impact your credit score.


Now, something to keep in mind is that a hard credit check does not always impact your credit score. For instance, if you have had let’s say one credit check that year or maybe another one with a financial institution, we have found that this does not negatively impact your score (in most normal credit scenarios). The credit report will allow you to have a certain number of hard pulls each year that won’t impact your score negatively. However, if you have several missed payments, or other credit concerns, hard credit checks, and more importantly, multiple different kinds of credit checks may have a negative impact on your credit score.


>>Need help fixing your credit? Check out our Credit Medic Guide<<


So how does this relate to pre-approvals? Well, if you are shopping on your own for your mortgage, then you can run the risk of having your credit negatively impacted as you go to institutions and have your credit report pulled repeatedly. The easiest way to solve that problem: work with a Mortgage Broker. We are a one stop shop—meaning we pull your credit once and shop that credit report around. We have access to multiple lenders and will find the one that is a right fit for you.


Looking to get pre-approved today? Use our How Much House Can I Afford App or fill out our full application HERE.

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