## Rocket Mortgage: Hard Credit Pull or Not?
In the realm of home financing, Rocket Mortgage has emerged as a titan, offering a streamlined and convenient mortgage application process. However, when it comes to evaluating your creditworthiness, does Rocket Mortgage perform a hard or soft credit pull? This article will delve into the intricacies of Rocket Mortgage’s credit checking practices, shedding light on the potential impact on your credit score.
### What is a Credit Pull?
Before diving into Rocket Mortgage’s specific practices, it is essential to understand what a credit pull entails. In essence, a credit pull refers to the process of accessing your credit report and associated information from a credit bureau. This information includes your payment history, outstanding debts, credit limits, and more. Lenders and other financial institutions utilize credit pulls to assess your financial standing and determine your eligibility for loans, credit cards, and other forms of financing.
### Types of Credit Pulls
There are two primary types of credit pulls:
**1. Hard Credit Pull (Hard Inquiry):**
* Initiated by a lender when evaluating an application for a loan, credit card, or other financial product.
* Typically results in a temporary decrease in your credit score.
* Remains on your credit report for two years.
**2. Soft Credit Pull (Soft Inquiry):**
* Occurs when you check your own credit report or when lenders pre-approve you for offers.
* Does not affect your credit score.
* Remains on your credit report for a shorter period than a hard inquiry.
### Rocket Mortgage’s Credit Pull Policy
Rocket Mortgage generally performs a **hard credit pull** when you submit a mortgage application. This hard pull is necessary for the company to accurately assess your creditworthiness, including factors such as your credit score, debt-to-income ratio, and payment history.
However, Rocket Mortgage does offer a **pre-approval process** that involves a soft credit pull. This allows you to gauge your eligibility for a mortgage without affecting your credit score.
### Impact on Credit Score
Hard credit pulls can temporarily lower your credit score by a few points. This is because lenders view multiple hard pulls within a short period as a sign of increased credit risk. However, the impact is typically minimal and should not significantly affect your overall creditworthiness.
If you are concerned about the potential impact on your credit score, consider the following strategies:
* Limit the number of hard credit pulls you authorize in a short period.
* Space out your credit applications to avoid multiple hard pulls.
* Check your credit report regularly to monitor any changes.
### Conclusion
In summary, Rocket Mortgage performs a hard credit pull when you submit a mortgage application. This hard pull is necessary for the company to assess your creditworthiness accurately. However, Rocket Mortgage also offers a pre-approval process that involves a soft credit pull, allowing you to gauge your eligibility without affecting your credit score. While hard credit pulls can temporarily lower your credit score by a few points, the impact is typically minimal and should not significantly affect your overall creditworthiness.