Do lenders charge to run your credit report? Yes, here’s why.
When you apply for a mortgage, your lender will check your credit to assess your financial history and determine loan eligibility. But does it cost lenders to pull credit reports? The short answer: Yes, many lenders charge a fee to run your credit report, but not always.
Why does this cost exist, and how does it affect you as a borrower? In this guide, we’ll explore:
- Why lenders charge for credit reports
- The difference between a hard credit pull and a soft credit pull
- How many times a lender can pull your credit
- The impact of Consumer Financial Protection Bureau (CFPB) rulings on medical debt and credit reporting
Why do lenders charge a fee to run your credit report?
You might assume that lenders can check your credit report for free, but that’s not the case. Each time a lender pulls your credit, they pay a fee to one or more of the three major credit bureaus—Equifax, Experian, and TransUnion—for access to your credit history.
What goes into a credit report fee?
The fee lenders charge covers:
1. Credit bureau costs
Lenders don’t own the credit data—they buy it from the credit bureaus. Each credit pull costs the lender money, and the fee depends on:
- The number of credit bureaus used (a single-bureau report is cheaper than a tri-merge report)
- Lender agreements with credit bureaus (bulk pricing may lower costs)
2. Tri-merge credit reports
For mortgages, lenders typically request a tri-merge credit report. This is a combined report from all three bureaus, giving a complete financial picture. Because it involves multiple reports, it costs more than a single-bureau credit check.
3. Compliance and processing costs
There are some strict legal standards mortgage lenders must comply with. Credit checks must be reviewed and analyzed, adding internal costs for:
- Processing and underwriting
- Fraud prevention measures
- Verifying financial stability
How much does it cost to pull a credit report?
Most mortgage lenders charge between $100 and $250 to pull your credit. However, costs can vary depending on the lender, the type of report requested, and market conditions.
Where is this fee reflected?
The credit report fee is usually included in the mortgage application process and can appear in your closing costs which is paid through closing. Some lenders absorb the cost, while others pass it directly to borrowers.
Hard vs. soft credit pulls: what’s the difference?
Not all credit inquiries affect your credit score. There are two types of credit checks—hard and soft pulls. Understanding the difference can help you avoid unnecessary dips in your credit score.
| Hard credit pull | Soft credit pull | |
|---|---|---|
| Affects credit score? | Yes, can lower by a few points | No, does not affect score |
| When does it happen? | Loan applications (mortgage, auto loan, credit card) | Checking your own credit, pre-qualifications |
| How long does it stay on your report? | Up to 2 years | Not recorded on credit reports |
| Used by lenders? | Yes, for final loan approval | Yes, for pre-approvals or marketing offers |
How many times can a lender pull your credit for a mortgage?
A mortgage lender may check your credit up to three times during the loan process. These checks help ensure that you remain financially eligible for your mortgage from start to finish. Here’s when they happen and why:
1. Initial pre-approval credit check
The first credit check happens when you apply for mortgage pre-approval. Once you give your loan officer consent, they’ll pull your credit to:
- Verify your credit score and history
- Assess your debt-to-income ratio (DTI)
- Determine which loan programs you qualify for
An underwriter will review your full financial profile, including earnings, debt, and savings. If everything looks good, you’ll receive a pre-approval letter, which allows you to confidently start shopping for a home with a clear idea of your loan amount and terms.
2. Credit check after 120 days (if applicable)
If your mortgage application process extends beyond 120 days, your lender may need to pull your credit again. This can happen if:
- Your original credit report has expired (most reports are valid for 120 days).
- You’ve made financial changes that may improve your loan terms, such as paying off debt or increasing your credit score.
This second check ensures that your financial situation remains stable and that you still qualify for your loan terms.
3. Final credit check at closing
Just before closing, some loan programs require a pre-close credit check to confirm that no new debt has been added since pre-approval. If this check reveals:
- A new loan or credit card
- Higher credit balances
- Late payments
Your lender may require additional documentation to explain the changes. In some cases, new debt could impact your loan terms or approval.
What to do: To avoid issues at closing, try to keep your financial situation the same as when you were pre-approved. Avoid opening new credit accounts, taking on new loans, or making major purchases until your mortgage has officially closed.
What about shopping around? Will multiple credit checks hurt my score?
Credit scoring models treat multiple mortgage inquiries within a short period (14-45 days) as a single inquiry. This means you can shop around without worrying about multiple hits to your credit score.
If you’re planning to compare lenders, try to complete your applications within a single month to keep your credit score impact as low as possible.
Medical debt no longer affects your credit score
As of 2025, changes to credit reporting rules made it easier for homebuyers with past medical debt to qualify for a mortgage. Under updated guidelines from the Consumer Financial Protection Bureau (CFPB), medical collections under $500 no longer appear on credit reports, and paid medical debt has been removed entirely.
How this benefits homebuyers
- Higher credit scores – Many borrowers have seen an increase in their scores.
- Easier loan approval – Medical debt no longer impacts mortgage eligibility.
- More accurate credit reports – Lenders now focus on long-term financial habits rather than unexpected medical expenses.
If medical collections once lowered your score, you may now qualify for better loan terms. Before applying, check your credit report to see if your score has improved.
What to expect when your lender pulls your credit
1. A hard credit pull is required
Unlike checking your own credit score or getting pre-qualified for a loan (which uses a soft inquiry), a full mortgage application requires a hard credit pull. This allows lenders to:
- Review your credit history across all three major bureaus
- Verify your debt-to-income ratio (DTI) to assess affordability
- Determine your interest rate eligibility based on your score
Since a hard inquiry is recorded on your credit report, applying for a mortgage will slightly impact your credit score. However, this impact is typically minor compared to larger credit factors like payment history and outstanding debt.
2. Your score may drop slightly—but only temporarily
A hard credit inquiry can cause a small dip in your credit score—typically less than five points—but this impact is temporary and fades after a few months.
The effect depends on a few factors:
- Your credit history – If you’ve had credit for a long time and consistently make on-time payments, a single hard pull has minimal impact.
- Recent credit inquiries – If you’ve recently applied for multiple credit cards or loans, another hard inquiry could have a slightly bigger effect.
- Overall credit utilization – If you’re using a large percentage of your available credit, even a small score drop could impact the loan terms you qualify for.
If you're planning to apply for a mortgage soon, it’s best to hold off on applying for new credit cards or loans until after your home purchase is complete.
3. Shopping around won’t hurt your credit—if done right
Shopping for the best mortgage is smart financial planning, and credit scoring models allow you to do this without heavily penalizing your credit score.
Here’s how it works:
- Multiple mortgage applications within a short period (typically 14-45 days) count as just one inquiry.
- This allows you to compare loan terms, rates, and lender fees without worrying about multiple hits to your credit.
- The exact time window varies depending on the credit scoring model, but most lenders use a 45-day window for mortgage applications.
If you’re shopping around for the best mortgage, try to complete all your applications within a single month. That way, all the inquiries will be treated as a single one, keeping the impact on your credit score to a minimum.
4. Avoid major financial changes before closing
Lenders don’t just check your credit once. Your credit will be pulled again before closing to make sure your financial situation hasn’t changed. Any new loans, credit cards, or large purchases could put your mortgage approval at risk—even if you’ve already been pre-approved.
Things to avoid between pre-approval and closing:
- Applying for new credit cards – Even if you don’t use them, new accounts can lower your average credit age and increase inquiries.
- Financing a new car or large purchase – A new auto loan or financed purchase could increase your debt-to-income ratio and affect your mortgage eligibility.
- Closing old credit accounts – This can shorten your credit history and increase your credit utilization, which may lower your score.
- Missing or making late payments – Even a single late payment can have a significant impact on your credit score and could cause problems with your mortgage approval.
If you’re not sure whether a financial decision will impact your mortgage, check with your lender first. It’s always better to ask than to risk jeopardizing your home loan.
Want our help navigating the mortgage loan application process?
Understanding your credit score and how credit checks impact your mortgage is a key step toward making informed, confident financial decisions. While lenders charge a small fee to pull your credit, knowing how inquiries work can help you protect your score and secure the best loan terms.
At Guild Mortgage, we’re here to guide you through every step of the home financing process. Whether you’re just starting your search or ready to apply, our loan officers can help you navigate your options and move forward with confidence.
Let’s make your homeownership goals a reality. Connect with a loan officer today.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.