Saturday, August 21, 2010

Does getting quotes from car insurance companies lower your credit score?


Question by PUB H: Does getting quotes from car insurance companies lower your credit score?
I've heard that everytime you apply for a credit card, get insurance quotes, etc. your credit score gets lowered.



Best answer:

Answer by ElGuapo
The credit bureaus differentiate between a "voluntary" and "involuntary" credit check, and it does temporarily lower your FICO score if you initiated the request. (Incidentally, a person checking their credit history on their own is considered "involuntary" and does not impact your score.) This isn't a reason NOT to apply for credit, but it does mean you should avoid making any small credit applications just prior to a big purchase, like a home.



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