Rate Shopping
The practice of comparing loan terms from multiple lenders to find the best interest rate. FICO accounts for rate shopping by counting multiple mortgage, auto, or student loan inquiries within a 14–45 day window as a single inquiry. This protection does not apply to credit card applications.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Hard Inquiry
A credit check that occurs when you apply for new credit — a credit card, loan, mortgage, or auto financing. Hard inquiries may lower your FICO score by a few points (typically fewer than 5) and remain on your credit report for two years. Also called a 'hard pull.'
- Mortgage
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
Frequently Asked Questions About Rate Shopping
What does Rate Shopping mean?
The practice of comparing loan terms from multiple lenders to find the best interest rate. FICO accounts for rate shopping by counting multiple mortgage, auto, or student loan inquiries within a 14–45 day window as a single inquiry. This protection does not apply to credit card applications.
Is Rate Shopping important for my FICO® score?
Understanding Rate Shopping helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.