Does checking rates hurt my credit?

There are two kinds of credit checks, and they affect your score differently.

• Soft check: a look at your credit that doesn't change your score. Checking your own credit, many online rate quotes and some pre-approvals use soft checks.
• Hard check: a full credit pull when you apply for credit. It shows on your report and can lower your score slightly.

For most people, one hard inquiry lowers a score by only a few points. The effect usually fades over a few months. The inquiry stays on your credit report for about two years, but scoring models weigh it less as time passes. Your payment history and how much of your available credit you use matter far more.

Credit scoring models know that home buyers compare lenders. So they usually treat several mortgage inquiries within a short period as a single inquiry. Depending on the scoring model, that window is roughly 14 to 45 days.

This means you don't have to choose between getting the best deal and protecting your score. Just keep your comparison shopping within a few weeks.

You can check CapCenter's rates online for free, with no credit check. If you move ahead, pre-approval with CapCenter uses a soft credit check, so it won't affect your score. Once you're under contract on a home, CapCenter runs a full credit check, which is a hard inquiry, to complete your loan.

Comparing lenders well takes more than a rate. A few tips:

• Compare offers on the same day, since rates change daily.
• Use the same loan amount, term and loan type for each quote.
• Look at the Loan Estimate, including APR, lender fees and points, not just the rate.
• Keep hard inquiries inside a few weeks if you apply with more than one lender.

New credit cards, car loans or store accounts add their own inquiries and new debt. Those aren't part of the mortgage shopping window. Try to hold off on new credit until after closing, and keep paying your bills on time.