Does Zillow Application Affect Credit Score?
In today’s digital age, real estate transactions have become increasingly accessible through online platforms. One such platform is Zillow, which allows users to search for homes, get mortgage rates, and even apply for loans. However, many potential homebuyers are concerned about the impact of using Zillow’s application on their credit score. In this article, we will explore whether or not Zillow application affects credit scores and provide some tips on how to minimize any potential negative effects.
Understanding Hard Inquiries
To understand how Zillow’s application may affect credit scores, it’s important to first understand the concept of hard inquiries. A hard inquiry occurs when a lender checks your credit score as part of the loan approval process. This is typically the case when you apply for a mortgage, auto loan, or credit card. Hard inquiries can temporarily lower your credit score by a few points, but the impact is usually minimal and temporary.
Does Zillow Application Count as a Hard Inquiry?
The short answer is yes, Zillow application can count as a hard inquiry on your credit report. When you use Zillow’s mortgage calculator or apply for a mortgage through their platform, the lender will likely perform a hard inquiry to verify your creditworthiness. This means that your credit score may experience a slight dip as a result of the Zillow application.
Minimizing the Impact
Although Zillow application can cause a hard inquiry and potentially affect your credit score, there are ways to minimize the impact. Here are some tips to consider:
1. Check your credit score regularly: By monitoring your credit score, you can stay informed about any changes and address any issues that may arise.
2. Limit the number of applications: Avoid applying for multiple loans or credit cards within a short period of time, as this can increase the number of hard inquiries on your credit report.
3. Wait between inquiries: If you plan to apply for multiple loans or credit cards, try to space them out by a few months to minimize the impact on your credit score.
4. Consider soft inquiries: Some lenders offer soft inquiries, which do not affect your credit score. If possible, opt for a soft inquiry instead of a hard inquiry.
Conclusion
In conclusion, Zillow application can indeed affect your credit score by causing a hard inquiry. However, the impact is usually minimal and temporary. By following the tips mentioned above, you can help minimize the impact on your credit score and continue to build a strong financial future. Remember, your credit score is just one factor in the mortgage approval process, and maintaining a good credit history is crucial for securing favorable loan terms.
