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Know The '45-Day Rule' To Keep Credit Applications From Wrecking Your Score

Mandi Woodruff
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Victoria Morse | VICTORIAMORSE.NET via Flickr

It's considered basic knowledge that every time you apply for a new line of credit, your credit score could take a hit.  That's because whenever another business looks into your credit history before lending you money, credit bureaus consider it a "hard pull" and dock you points.

But there may be a way to minimize the impact those pulls can have on your account, according to Consumer Reports

Most credit scores are not affected when you shop for a car, mortgage, student loan, or an apartment within 45 days, a FICO spokesperson told them.

Instead, they will treat it as a single inquiry and lump them all together. 

Good to know!

And don't worry too much if you absolutely need a new line of credit. Your score will drop, but it will rebound within a few months so long as you keep current on payments. 

Credit scoring is something of a mess to figure out, but FICO has a pretty helpful list of how different behaviors can impact your score. Check it out here.

H/T LifeHacker

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