Looking for a Loan Can Hurt Your Credit Score!

It happens all the time. Say, your credit score isn't the best, but it's certainly not too shabby. Depending on the institution where you apply for a loan or mortgage, you might be rejected. In practical terms, that's no big deal. You would just apply for the same loan from a different lender. Chances are your decent credit score will appease some lender out there.

But, watch out!

Every time you apply for a loan, that lender will check your credit report. Everytime a lender checks your credit, it negatively affects your credit score! That means, if the first lender you go to rejects you, you will actually have a worse credit score when the second lender checks your credit, and even worse still if a third lender checks.

So, if you are worried about your chances of being approved, there's a great trick to getting around the harmful effects of many credit inquiries. LendingXchange is one company that checks your credit score and then offers your application to multiple lenders at once. The lenders don't have to check your credit because LendingXchange has done it for them. This is a win-win situation. Your credit score only suffers one credit check, you effectively apply to many lenders at once, and your credit score is equally strong when shown to each lender!