Do Lenders Charge To Run Your Credit Report?

If you’re applying for a mortgage, it’s natural to wonder whether checking your credit comes with a cost. Many borrowers hesitate to move forward simply because they’re afraid of a hard credit pull or if a lender will charge them upfront to review their mortgage credit. 

Whether a lender charges for a credit inquiry depends on whether it’s a soft or hard pull and how the lender structures its fees. In most standard mortgage scenarios, soft credit pulls are not billed, but hard credit checks are part of the loan process and appear as an itemized charge at closing. At Altgage, we’re focused on affordability, and the majority of large wholesale lending partners do NOT charge for credit pulls at all. 

Below is a clear breakdown of how credit report fees typically work when applying for a mortgage.

How Much Do Lenders Usually Charge To Pull Credit?

Most mortgage lenders charge between $100 and $200 for credit-related services. This amount typically includes a tri-merge credit report, credit supplements, or re-scores if the loan takes longer to close or is upgraded to improve your interest rate.

Rather than billing this cost upfront, many lenders itemize these costs in section B of the loan estimate. As a result, borrowers may not immediately realize they’re paying for credit services until they review their Loan Estimate.

What Is Included In A Credit Report Fee?

A credit report fee is more than just a charge for viewing your credit score. It typically covers the essentials lenders need to evaluate your mortgage eligibility and may include additional services designed to support the underwriting process.

• Credit Reports from Multiple Bureaus: Most lenders pull reports from all three major credit bureaus - Equifax, Experian, and TransUnion to get a complete view of your credit history and ensure accuracy.
  
• Verification and Fraud Checks: Fees often cover identity verification, authentication, and fraud prevention measures that protect both the lender and borrower.
  
• Credit Boost Tools: To help borrowers improve their qualification before final approval.

Will Checking Your Credit Affect Your Credit Score?

Not all credit checks affect your score. Soft credit inquiries, like those used for pre-approval, do not impact your credit score at all. Hard credit inquiries for a formal credit application may have a small, temporary effect, typically lowering your score by 5–10 points.

Credit scoring models also recognize that borrowers shop for the best rates, so multiple mortgage-related hard inquiries within a 45-day window are treated as a single inquiry. This allows you to compare lenders without worrying about significant damage to your credit.

Must Know: Credit Mistakes to Avoid Before Applying for a Mortgage

Hard vs. Soft Credit Pulls: Key Differences

A hard credit pull occurs when a lender checks your credit as part of a mortgage application or rate lock, and it can have a small, temporary impact on your credit score. A soft credit pull is used for pre-qualification or informational purposes and does not affect your score.

Get complete info: Soft vs Hard Credit Checks

How Often Can a Mortgage Lender Check Your Credit?

A mortgage lender may review your credit more than once during the loan process, but this doesn’t mean your credit is constantly being re-pulled without reason. Typically, credit is checked at the beginning to determine eligibility and again later to ensure there have been no significant changes before closing. If a loan is delayed, expires, or requires updated documentation, the lender may need to refresh the credit report.

This is a standard practice across the industry and is mainly done to protect both the borrower and the lender. Most lenders will not re-pull credit unless required for underwriting or compliance.

Are There Lenders Who Don’t Charge Credit Report Fees?

Yes, some lenders do not charge borrowers for pulling a credit report. While most mortgage lenders charge a fee, at Altgage, we waive it in 90% of situations. By offering free credit pulls, Altgage makes it easier for borrowers to explore loan options, compare rates, and complete pre-approval without worrying about upfront fees.

In addition to standard credit checks, Altgage offers extra services to help borrowers qualify more easily. These include soft pulls for conventional loans, OptOutPrescreen to reduce unsolicited credit offers, and a Credit Boost service designed to improve your credit profile before final approval. 

Check out: Credit Boosting vs Credit Repair

These services are often bundled into the loan process and can make it easier for first-time homebuyers or borrowers with lower credit scores to explore their options without impacting their credit.

Frequently Asked Questions

1. Can multiple credit pulls lower my credit score?

‍Multiple mortgage-related inquiries within a short period (usually 14–45 days) are treated as a single hard pull, minimizing the impact on your credit score.

2. How long does a credit pull stay on my report?

‍Hard inquiries typically remain on your credit report for two years, but they usually only affect your score for the first 12 months.

3. Can I dispute errors on a credit report used by a lender?

‍ Yes, if you notice inaccurate information, you can file a dispute with the credit bureau to have it corrected, even during the mortgage process.

4. Do credit report fees vary by loan type?

‍Yes, conventional, FHA, and VA loans may have slightly different credit-related costs, depending on the lender’s underwriting and compliance requirements.

5. Is a credit report fee refundable if I don’t close the loan?

‍Generally, no. Most lenders consider the credit pull fee non-refundable once the report has been obtained.

6. Can I shop for multiple mortgages without harming my credit?

‍Yes, as long as your applications are within the rate-shopping window, typically 14–45 days, it counts as a single inquiry for scoring purposes.