Opening A CD Can Hurt Your Credit Score!
Certificates of Deposit (CDs) can be a useful part of your investment portfolio – but did you know that opening a CD at some banks and credit unions can drop your credit score? It's possible, depending on how your bank or credit union assesses risk.
When you apply for credit, lenders check your credit report to assess the risk in lending you money. These credit checks, called hard pulls, drop your credit score slightly. A typical hard pull drops your credit score by around five points and can remain on your credit report for up to two years. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.
Creditors use a different and less-extensive cred...
from MoneyTips https://ift.tt/2RWw9Ku
Comments
Post a Comment