Mortgage applications can impact your credit report

There are many factors that can affect your credit report and your credit score, such as applying for a mortgage loan. Although it may only drop your score by five points or less, it will place an inquiry on your credit report, according to MarketWatch.

The black mark will appear on your credit report whether you are rejected for the loan or are approved. The inquiry can stay on your report for two years, the news source reported. While a single mortgage inquiry probably won't damage your credit too much, if you're also applying for a number of other credit lines at the same time, you could see your report riddled with hard inquiries. Fortunately, inquiries older than one year do not impact your credit score.

Lenders look at your credit report to determine your creditworthiness, or how much of a risk you will be with a loan. Many employers will look at your credit report as well, especially if you are applying for a position that deals with finances. Therefore, it's important for consumers to be aware of the information listed on their reports.

If you notice that you have any inquiries, mistakes, or anything else you disagree with, you have the right to investigate or dispute these claims.

Many consumers have found visiting a credit repair company helpful. Speaking with a credit repair attorney can help fix your credit and get your finances in order.