The responsible consumer doesn’t buy first and ask questions later.
And with that, the more important the purchase, the more scrutiny a business might expect from their market.
Simple enough. Right?
However, what happens when the stakes are high enough that the business looks at us right back?
I’m talking about Credit Checks and the impact they can have on your credit score and more
importantly, the frequency of those checks as we try to be responsible consumers and “shop around”.
Specifically, for purchases or services that require Hard Credit Inquiries.
Before you think I’m trying to invoke scare tactics, you ought to know that Hard Credit Inquiries are not
the only, or even the most impactful advent of your overall score. Mostly, your payments and card
utilization are the biggest factors because that’s a reflection on your behaviour. Several Hard Credit
Checks on the other hand, are a presumed reflection of your attitude. A prospect of uncertainty that
cause credit companies to raise their eyebrows and go: “Hmm, should we be worried?”
Also, note that a Hard Credit Inquiry might linger on your report for at least a year and up to as many as
Well this hardly seems fair. Are we really meant to be punished for trying to shop smart? Hardly.
Sanity does prevail when we illicit several Credit Checks for the same product of service within a small
time span. This is called “Bunching”.
So if you want to ensure that you make the best decision for choosing your Mortgage Broker, you will be
subject to several Hard Credit Inquiries as you “shop around”. But since these inquiries were in a
specific type of service over a few short weeks, for instance; it will only count as one.
With that, enjoy the confidence and freedom to make the most suitable choice when partnering with