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Frequent Contributor
mamahearts
Posts: 251
Registered: ‎08-16-2011
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Credit Union Application

We would like to switch from our bank to a credit union.  To open an account you must apply for membership and it says it will pull your credit report.  Does this count as an inquiry?  I don't want to lose any points on my credit score just to change banks! Thank you!

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Credit Union Application

Yes, it's a hard, and it's typical of credit unions.

 

Many (certainly not all) pull Equifax.

 

How many inqs do you have showing on Equifax for the last 12 months? A new hard might not cost any points at all, depending on where you are now.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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mamahearts
Posts: 251
Registered: ‎08-16-2011
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Re: Credit Union Application

I don't have any inquiries on my EQ report for the past 12 months.  But I don't think it's worth it the hassle.  Maybe we'll switch after we buy a house.  Thanks!!!

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
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John060675
Posts: 1,126
Registered: ‎08-29-2007
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Re: Credit Union Application

Yes, if you plan on making a major purchase in the next few months (house or car), then I would wait.  However, if you are not, then by all means burn the inquiry.  It only will count for one year.

 

By the way, a CU might offer good mortgage rates, so joining still might be a good idea.  Good luck.


Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
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mamahearts
Posts: 251
Registered: ‎08-16-2011
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Re: Credit Union Application

It's a tough decision because the myFICO credit monitoring said that having no inquries on my record is helping me.  My EQ score is 645 and we'd like to buy a house in the Spring to early summer and I am interested in getting the mortgage from the CU.   
John060675 wrote:

Yes, if you plan on making a major purchase in the next few months (house or car), then I would wait.  However, if you are not, then by all means burn the inquiry.  It only will count for one year.

 

By the way, a CU might offer good mortgage rates, so joining still might be a good idea.  Good luck.


 

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
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John060675
Posts: 1,126
Registered: ‎08-29-2007
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Re: Credit Union Application

I think it might be worth the inquiry then, if you are going with the CU for the mortgage.  I am not sure if they require this, but I think having a stable account open for several months with them would go a long ways to helping in the mortgage process.  It would show your spending habits and show stability (hopefully).


Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
Goal Score: 720 EQ, 720 EX, 720 TU


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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Credit Union Application


mamahearts wrote:

 

It's a tough decision because the myFICO credit monitoring said that having no inquries on my record is helping me.  My EQ score is 645 and we'd like to buy a house in the Spring to early summer and I am interested in getting the mortgage from the CU.


There's not a guarantee on this, but many of us find that we don't get a ding (score drop) for having only one inq on a given CRA report.

 

Since it sounds like you are six months or more out from mortgage app'ing, I'd be astonished if this hurt you come time to apply, especially since you're considering them as a mortgage source.

 

One of the wonderful things about CU's is that most will tell you upfront how your actions will affect how they look at you. You might want to make an appointment with a loan officer. By the way, your Equifax FICO score report is what the industry calls a Beacon 5.0 score. You can print yours and and show it to the loan officer, telling her/him that it's a Beacon 5.0, and what would they suggest to help you improve before mortgage time. Many CU's pull Beacon 5.0's, so although the format will look a little different than the report they pull, it will contain the same info, including the same score.

 

If and when you decide to join, of course, they'll have to pull one for real, and that will generate the hard inq.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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RobertEG
Posts: 17,729
Registered: ‎03-19-2007
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CuRe: Credit Union Application

+1

CUs are generally, in my opinion, usually well-worth one simple credit inquiry to get an account established.

They offer more personal service, the willingness to talk to you face-to-face, and highly competitive rates. 

Many offer bank cards.  Just make sure they report your account to the CRAs, and not just their credit pulls.

I would break the egg, and make the omelet.

 


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