Debunked

Credit Myths That Cost Veterans Better Rates

December 2025

As the founder of EZ-IRRRL, I've spent my career identifying and solving the unique challenges veterans face in the mortgage market. After years in VA lending, I've learned that misconceptions about credit often prevent veterans from securing the best possible rates on their IRRRL refinances. Today, I want to dispel some common credit myths that might be costing you money.

Myth #1: Checking Your Own Credit Hurts Your Score

What most veterans don't realize is that there's a crucial difference between "soft" and "hard" credit inquiries. When you check your own credit, it's considered a soft pull and doesn't impact your score. In my experience with VA lending, veterans who regularly monitor their credit profiles tend to secure better rates because they address issues proactively.

Myth #2: Closing Credit Cards Improves Your Score

Here's the insider knowledge I share with my clients: closing credit cards often hurts rather than helps your score. Why? Because it reduces your available credit and can increase your credit utilization ratio. I've seen veterans close old accounts thinking they're doing the right thing, only to watch their scores drop right before applying for an IRRRL.

Myth #3: All Debt Equally Impacts Your VA Loan Eligibility

The key concept to understand is that IRRRL loans have a tremendous advantage over traditional refinancing: NO debt-to-income requirements. I created EZ-IRRRL because I saw veterans unnecessarily struggling to reduce debt before refinancing, when the VA's Interest Rate Reduction Refinance Loan program doesn't actually require DTI calculations.

Myth #4: You Need Perfect Credit for a VA IRRRL

Veterans often ask me about minimum credit requirements. While conventional wisdom suggests you need excellent credit for any refinance, the IRRRL program is specifically designed to be accessible. Our automated system can help veterans with a range of credit profiles secure meaningful rate improvements, often resulting in substantial monthly payment reductions.

Myth #5: All Lenders Offer the Same IRRRL Terms

After years in VA lending, I've learned that many lenders add unnecessary steps and costs to the IRRRL process. The reality? No appraisal is needed, saving hundreds in costs. No income verification is required. And through automation, EZ-IRRRL eliminates human error while passing origination cost savings directly to veterans.

Understanding these credit realities can make a significant difference in your refinancing experience. By leveraging the streamlined 30-day automated process we've developed, you can avoid these common pitfalls and potentially secure better rates with less hassle.

This is not an offer to lend. Rates subject to change. Get an official Loan Estimate before choosing a loan. EZ-IRRRL is not affiliated with the U.S. Government.