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Why Your First Credit Pull Could Cost You Big
Key Takeaways
- Hard inquiries from lenders ding your credit—sometimes only a few points, but multiple pulls can add up fast.
- You can shop lenders within ~30–45 days without stacking penalties, but that time frame matters.
- If a lender blindsides you with a worse rate (“bait‑and‑switch”), you’re stuck—your credit’s been hit and you’re halfway through the process.
- Do your homework and get comfortable with a lender before you let them pull your report.
Why you really need to pick your lender carefully
1. Hard inquiries leave a mark
When a lender checks your credit, it’s called a hard inquiry—and that usually knocks a few points off your score. It might not seem like much, but if you forget and let a second, third, or fourth lender pull your report… your score takes more hits—sometimes 10 points or more per inquiry (FNB247).
2. The 30–45‑day “rate shopping” window
Credit scoring models let you shop for a mortgage, car, or student loan without penalty—as long as all hard pulls happen within a short window, usually 14–45 days, sometimes up to 45 days (Mortgage Solutions). But if you stretch things out—say, two inquiries 60 days apart—they’re tracked separately. Boom—you’ll get dinged twice.
3. Bait‑and‑switch = stuck in the mud
Starting with a lender and getting a good pre‑approval feels great—until they hit you with higher rates or extra fees at the finish line. By then, you’ve already gone through the paperwork, your credit has been pulled, and you can’t easily back out. If you jump to a new lender, that’s another hard pull… and another drop in your score.
4. Once the credit pull happens, you’re halfway committed
Many lenders start the process before locking in—ordering appraisals, documents, MMIs, etc. They’ve invested time and money. You’ve also invested your credit. Backing out can delay closing, cost you fees, or even kill the deal (Experian).
How to avoid lender regrets
- 📞 Pre‑qualify with soft pulls first—these don’t affect your credit. Then shop around and compare official rates from one or two trusted lenders.
- 💻 Check reviews, ask friends/family, and look at transparency—any lender that feels shady? Walk away.
- 🕐 Bundle your hard inquiries into that 30–45 day window, and lock in rates quickly once you're sure.
- 📋 Read the fine print on your Loan Estimate—make sure the rate and fees they quoted are real.
Bottom line: once a lender runs your credit, you're halfway into their world. If they switch the deal on you, you're stuck—and your score’s taken a hit already. Do your homework. Pick a trustworthy lender. And bundle your credit pulls so you don’t pay for it twice.
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