Credit Scores...Does anyone reallly know:

Where would one turn for facts on how individual decisions effect credit scores? Four months ago my FICO was 630. Since then I’ve closed on my first deal and made out quite well. Used $15000 of the proceeds to pay credit cards down to <30% of available limits. I am 100% committed to building my credit score into the 700s and beyond, but the problem is, can’t find a place to turn for rock solid answers to my questions so I can make the right decisions!

I’ve got the basics down, pay all bills early, don’t apply for more credit cards/store cards, don’t close good standing accounts that have been open for a long period of time, don’t get divorced (learned the hard way a few years ago). But…

I just got another deal under contract. I can buy with a hard money loan or get an investor friendly mortgage. How should I maximize the inquiries that are about to come, and in 6 months when I’ve cashed out another great payday, will my credit score be better off having used hard money which I assume won’t report to Credit Bureaus or Mortgage lender who likely will (closed loan, paid in full/early).
:help :help :help :help :help :help :help :help :help :help

I can field the question you asked…

Q: What can I do about minimizing the impact of credit inquiries I might inquire as a result of conventional financing.

  • Opt out @ —it’s the equivalent to the do not call registry, instead it prevents unauthorized credit pulls (inquiries).
  • Also try to comparison shop for a mortgage in the same timeframe—multiple pulls from different lenders are viewed as one if done correctly.

To avoid this all together, get a HML…

If you have any more—fire away!


Scott Miller

/fixed broken link…Rich

Actually you will see when a mortgage hits your credit your will see an increase in your score many times a few points. Also keeping inquiries down and balances low is important. Also trying to pay off some accounts is great also.
The opt out is important. I hear it can raise your score 5-15points.

HML are good for fast deals and less hassel but keep in mind, only way that will get reported is if you do not pay the bill.

Thanks for the suggestions. I just completed my opt out on your advice. I had been under the impression that those kinds of inquiries did not negatively impact your score in any way (unlike actually applying for credit). This is what I mean by wondering why it is soooo hard to get real answers so an individual that wants to build his/her credit rating can actually do it! It’s like planning a trip from Miami to Chicago and the exact directions exist only on a stone tablet secured in Fort Knox. You really want to get to Chicago but all anyone can tell you is “go north” or… “I know you wanted to go north, but you really needed to go northwest and sorry you ended up in Lake Erie. You will ge able to get out of the lake in 4-7 years.” :banghead

Is everyone in agreement that if I secure a mortgage, pay it timely for the 4-6 months till I retail the property, and pay it off at that time (along with whatever prepayment penalty) that there will be POSITIVE effects on my credit score as opposed to a HML which will essentially only hurt my score by showing up as an inquiry? That’s the real jist of my question at this time.

The next question is: at what utilized % of available credit on a particular credit card does the account go from hurting your score to helping your score? In the past couple weeks I’ve had a mortgage loan officer tell me “keep your balance under 50%”, I’ve heard “30%”, and I’ve also had a VP of Commercial Lending at a regional bank tell me that the balances have to be 0 to help!"

try the forum section on

Thanks for the opt out link. :beer
I hope this cuts out the 5 credit card offers my wife and I receive daily :banghead

Mine went away when I opted out, takes a month or so though. I opted my girlfriend out about 5-6 weeks or so ago and the offers just stopped recently.

I came across another useful site yesterday in my quest for better credit score understanding. has alot of useful, simple information. I chose to sign up for a trial of their Scorewatch, so I can log on anytime and see my up-to-date FICO score (which I’m happy to say has risen 23 points in the last 3 months), review all accounts, I opted to receive email and text message alerts when there is any activity on my report or a change in my score, and there’s a relatively useful page where you can simulate the effects of certain actions on your score.

I’m not in Chicago yet, but I won’t end up in Lake Erie, that’s for sure. I’d best describe it with a referece to a famous quote from White Men Can’t Jump…I’ve gone from listening to Jimmy to [i]hearing[i] Jimmy.

Never heard about this opt out site until now. Just completed the opt out, but there wasnt any kind of confirmation or anything.

Did anyone opt out and get a confirmation??

I dont think ‘opting out’ directly affects your credit score

“Does Opting-Out improve my credit score?
No, since inquiries for firm offers for credit or insurance are not used in calculating credit scores, Opting-Out does not improve your credit score. Similarly, inquiries for firm offers for credit or insurance do not reduce your credit score.”