{"id":10577,"date":"2026-03-31T19:34:21","date_gmt":"2026-03-31T19:34:21","guid":{"rendered":"https:\/\/www.visibeetech.com\/ryan\/all-about-new-credit-and-how-it-affects-your-credit-score\/"},"modified":"2026-03-31T19:34:21","modified_gmt":"2026-03-31T19:34:21","slug":"all-about-new-credit-and-how-it-affects-your-credit-score","status":"publish","type":"post","link":"https:\/\/www.visibeetech.com\/ryan\/all-about-new-credit-and-how-it-affects-your-credit-score\/","title":{"rendered":"New Credit And How It Affects Your Credit Score"},"content":{"rendered":"

If you're applying for a home loan within the next few months and considering taking out a loan or applying for new credit before then, you'll want to get the facts.<\/strong><\/p>\n

\"Image<\/figure>\n

Quick Overview: Why Your Credit Score Matters in Home Loan Approval<\/h2>\n

Lenders use your credit score as a sort of barometer for your financial credibility. The higher your score is, the more credible you are in the eyes of lenders.<\/p>\n

There are five areas they look at:<\/p>\n

  • Whether you pay your bills on time.<\/li>\n
  • The amount of credit you’re using considering what’s available to you.<\/li>\n
  • The age of the earliest available credit.<\/li>\n
  • The variety of credit you have like mortgages, student loans, and credit cards.<\/li>\n
  • Your ability to get new credit.<\/li>\n

    There are two types of inquiries made when applying for new credit, soft and hard, and each of these impacts your credit in different ways.<\/p>\n

    A soft inquiry (sometimes called a soft pull) is primarily for educational purposes, such as when an employer conducts a background check, or you’re getting preapproved for a home loan. This type of inquiry has no impact on your credit score.<\/p>\n

    A hard inquiry (or hard pull) happens when you’re attempting to establish new credit, such as getting a mortgage, credit card, student loan, or car loan. A hard inquiry does impact your credit score and lowers it temporarily.<\/p>\n

    How Much Will My Score Drop After A Hard Inquiry?<\/h2>\n

    A typical hard inquiry can make your credit score drop by around 5 points per occurrence. Although this can seem like a huge dip, “new credit” only accounts for about 10% of your overall score, and it usually recovers in a couple of months. But if you’re shopping around and applying for several loans “just to see if I get approved,” the negative impact can start to add up and lower your score significantly.<\/p>\n

    “I Just Applied For A Loan. Can I Still Get A Mortgage?”<\/h2>\n

    Hard inquiries will influence your credit score but not by an amount significant enough to disqualify you from getting approved for a home loan. If you’ve been on time with the rest of your bills and have been limiting your credit utilization, then the chances are excellent that you’ll be approved for a low-interest rate home loan.<\/p>\n

    Unsure if there are steps you need to take before applying for a home loan? We can help! After a free consultation and a 360-degree view of your financial health, we’ll let you know the fastest route for getting approved for a low-rate home loan.<\/p>\n","protected":false},"excerpt":{"rendered":"

    If you're applying for a home loan within the next few months and considering taking out a loan or applying for new credit before then, you'll want to get the facts. Quick Overview: Why Your Credit Score Matters in Home Loan Approval Lenders use your credit score as a sort of barometer…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16],"tags":[17],"class_list":["post-10577","post","type-post","status-publish","format-standard","hentry","category-blog","tag-mortgageblog","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/posts\/10577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/comments?post=10577"}],"version-history":[{"count":0,"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/posts\/10577\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/media?parent=10577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/categories?post=10577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.visibeetech.com\/ryan\/wp-json\/wp\/v2\/tags?post=10577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}