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Should You Apply For Financing (Have Someone Pull Your Credit) During the Repair Process?
If you’re thinking about applying for new credit and not sure if it’s a good idea to do so during the repair process, then this article is for you!
It doesn’t really matter if you’re in the beginning, middle, or end stages of credit repair.
All clients are asked not to seek new credit (have someone pull your credit – soft or hard pull) while enrolled in the derogatory or inquiry removal process.
Why, because of two reasons:
1 – During the credit repair process your credit score can possibly drop temporarily a few points with each deletion of any negative accounts.
If you apply for new credit of any kind, a hard pull inquiry will show up on your credit report. Inquiries are 10% of your credit score and weigh negatively against you for roughly 3 to 5 points for each pull. Which is an additional drop in score.
2 – If you apply for new credit and are extended credit, your credit score will temporarily drop again because the length of credit history (How long you’ve had the account) is 15% of your credit score.
As you see, applying for and receiving new credit during the credit repair process can potentially drop your FICO score by 25%.
Still need help? Visit Accelerator Week 1 DIY Credit Repair
