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Shopping for a home loan? It’s best to do it within 30 days of a credit pull so your score doesnt drop.

When you apply for credit, such as a car or home loan, you authorize lenders to inquire for a copy of your credit report from a credit bureau. Too many inquiries could lower your credit score and result in higher interest rates when you borrow, which can translate into paying more over the life of the loan.

If youve ever looked at your credit report, you may have seen credit inquiries by businesses you dont know. Some of them count toward your credit score and others dont.

Hard Credit Inquiry
Hard inquiries happen when you apply for a loan. They affect your credit score, though not by much.

Hard credit inquiries show up when youve applied for credit: car loan, mortgage, student loan or credit card, for example. Each is a credit check that indicates a lender has reviewed your credit because youre applying to borrow money through them.

Applying for credit affects your credit score because opening several credit accounts in a short period of time represents greater credit risk, according to My FICO, a credit scoring company.

If youre rate shopping for a single loan, such as a home loan, it will be treated as one request on your credit report as long as the inquiries are made within 30 days. You may be shopping at multiple mortgage lenders, but those numerous credit requests will count as one and wont affect your credit score if done within 30 days. Some newer credit scoring companies allow up to 45 days of shopping, and some drop it to 14 days.

Soft Credit Inquiry
These arent generated by shopping for credit, and they dont affect your credit scores. Soft credit inquiries include:

Checking your own credit score.
Receiving pre-approval offers you didn’t apply for.
Additional credit checks by a lender you already do business with.
Credit checks by your employer.
Credit checks by your insurance company.

Impact on Credit Scores

While soft credit inquiries don’t affect your credit score, hard inquiries do. New credit makes up 10 percent of a FICO credit score, and inquiries and new credit accounts are part of that.

For most, a credit inquiry will take less than five points off their FICO score, according to My FICO. Having few accounts or a short credit history, however, can cause a credit inquiry to have more of an impact.

Many inquiries can mean greater risk. People with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than those with no inquiries, according to My FICO.

Inquiries remain on credit reports for two years. Only those within the past year count toward most scoring models; the older ones are ignored.

Published with permission from RISMedia.

When inheriting a home, some people have mixed feelings about what to do with the property, especially if it has sentimental value.

You could move into the home if it meets your familys needs, but beware of maintenance costs.

If you have a small business, the home might be an ideal place to run operations without interruption.

You could even sell the home and invest the money in your future.

To hold onto the property, cover maintenance costs and earn some money, you could rent the house out.

Ultimately, choosing what to do with an inherited home depends on your current situation and overall goals.

Published with permission from RISMedia.

Icons and superheroes go in and out of style, so decorating your kids rooms to reflect their current favorite may not be the best idea. Decorators suggest using timeless themes and practical ideas to make their spaces cheerful and organized:

Start with color ” Choose a favorite, preferably a soothing one, to help your child ease into sleep. Consider painting one wall in chalkboard paint, ready for years of artistic expression.

Use cool family art ” Choose a favorite family, vacation, or kid photo and blow it up to large standard frame size at an office supply store. Then cut it evenly into thirds or fourths vertically, frame each one, and hang them side by side as separate pieces separated by just an inch or two.

Make it a gallery ” String wire from one wall to another, just high enough for you to reach, to hold a changing display of your childs drawings. Or frame the drawings in standard acrylic frames that can be changed as new masterpieces emerge.

Try dresser magic ” Perk up a drab white dresser inexpensively by tying a length of colorful ribbon into a bow around each of the knobs.

Create a reading nook ” Make it an inviting place for shared reading with a bookcase full of books, soft lighting, and seating comfy enough for cuddling.

Add maxi–storage ” A rack of colorful, stacked bins from the local home store is better than a toy box for storing trucks, games, building blocks, and other large toys.

And mini-storage ” A multi-pocketed shoe organizer hung from one wall is a great place to stash mini action figures, Hot Wheels cars, hair goodies, and other small treasures.

Stock cubbies or a shelf with art supplies ” Keep it full of construction paper, markers, poster board, and other supplies your kid may need for school projects.

Create a play space ” Kids love to play dress-up. Find an old trunk and fill it with vintage clothing and hats they can use to put on a show.

Published with permission from RISMedia.

Published with permission from RISMedia.

So a babe is on the way? Congrats! Along with the chaos of, well, everything that is to come, your finances are about to experience an upheaval, as well. According to the U.S. Department of Agriculture, it will cost upwards of $245,000 to raise a child born in 2013 to the age of 18″and this does not include college. Feeling that bank account burn already? Below are five tips for rocking your budget as a new mom or dad.

1. Tweak the budget. Your new little one is going to cost a pretty penny. From hospital costs to diapers and child care, budgetary stress is an added strain on you as a new mom or dad. Look for any unnecessaries you can slash to make room for more baby dollars. The more prepared you are, the better.

2. Track your spending. Don’t just make that budget and set it aside. Set a monthly meeting with your spouse to look over your spending, make sure you’re on track, and identify any problem areas or potential saving pockets.

3. Learn your tax credits. I bet you didn’t see this one coming. Being a parent has some advantages at tax time, so talk to your tax professional about what you may be eligible for.

4. Automate, automate, automate. Not only can automation help you avoid bouncing bills, but by having money withdrawn from your account, you can pad up your savings, too. Figure out how much you can part with every month and automatically squirrel it away into an emergency savings account, a college savings account, or both.

5. Set financial goals. While creating a budget and savings plan is great, setting goals for your family can help you stay on track. Looking to have a set amount in a college account by the time your kid hits 18? Do the math and decide how much you need to save monthly to hit it. Is an annual family vacation a must? Figure out how to stash some cash for that, and then make it happen. Also, stay well informed on real estate market trends if you’re looking to buy a home or move up to a larger one.

Above all, don’t forget to be realistic, and forgive yourself if it takes some time to get on track. Parenting is a lifelong adventure!

Published with permission from RISMedia.