Author Topic: How did acquiring rental properties affect your credit score?  (Read 766 times)

FrugalSaver

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How did acquiring rental properties affect your credit score?
« on: August 28, 2017, 10:22:20 PM »
I've bought several in the last couple of years and my credit score has dropped near triple digits.

Revelry

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Re: How did acquiring rental properties affect your credit score?
« Reply #1 on: August 29, 2017, 07:05:22 AM »
There are some web resources to help you understand how credit scores are calculated.

The best thing might be to create a business with EIN for your real estate so that any mortgages, credit cards, etc. are not in your personal name.

MaikoTsumi

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Re: How did acquiring rental properties affect your credit score?
« Reply #2 on: August 29, 2017, 07:15:08 AM »
The actual act of acquiring rental properties has minimal impact on my credit score.  3-4 hard inquiries a year will drop you about 50 points.  Any inquiries within a 30 day period count as one.  If you are pulling credit for credit cards, and carrying high balances as well, then you can get hit pretty hard. 
    I've had hard pulls for two refinances, three properties and a new truck this year and none of that hurt my credit as much as letting one of my card balances go over 80% for one pay period.

tralfamadorian

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Re: How did acquiring rental properties affect your credit score?
« Reply #3 on: August 29, 2017, 08:28:05 AM »
Mortgages can affect your credit score in three ways- 1) payment history, 2) age of accounts and 3) hard inquires.  My credit score has been pulled down by about 50 points by rental mortgages marginally by #2 and particularly by #3. 

There's nothing to do but wait for the credit pulls to drop off (two years) and make sure to keep your older accounts open to help with the average account age.  With the popularity of tradelines, I've had a couple of my old accounts tell me that they would close them if I didn't use them. 

zinethstache

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Re: How did acquiring rental properties affect your credit score?
« Reply #4 on: September 04, 2017, 10:47:40 PM »
hmm, Something seems off, here's our credit activity:

Aug 2012 refinanced our residence
Dec 2012 purchased a rental
April 2013 purchased another rental
April 2013 financed our car
June 2014 purchased yet another rental
Feb 2016 DH was pursuing a truck and the rotten dealer ran our credit without his consent
March 2016 financed our truck not the same as in Feb.
then most recently...
July  2016 we were pursuing a refi on a rental and pulled credit yet again - backed out due to increase in rates

all of this activity and we stayed within 20 points at all three agencies, all over 800 for both DH and I.

No noticeable drop in our credit score during all of this time. We have always been rated over 800. Not sure if being that high made the difference?

We carry no cc debt, have had our cc's for many years, have no late payments and are using a very low % of our available credit.