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FICO® Forums >
FICO Scoring and Other Credit Issues >
Understanding FICO® Scoring >
How many inquiries is too much?
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Re: How many inquiries is too much?
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 Tuscani
Moderator
Posts: 6465
Registered: 03-29-2007
Message 4 of 26
Viewed 38,685 times
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inzaghi wrote:
Its states on my score watch alert that
"New inquiries on a credit report may lower the FICO score by a modest amount. Multiple inquiries can lower the score a little more than a single inquiry. But note that multiple inquiries within a two-week period are treated as a single inquiry."
So If I am shopping for new credit cards should I do it within the 2 week period and
is this true for all the 3 CRAs
The two week rule only applies to auto and home inqs.. NOT CCs! And to correct my previous statement.. 12 month old inqs hold the same weight as 6 months old inqs.
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05-16-2007 10:40 AM
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Re: How many inquiries is too much?
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MidnightVoice
Super Contributor
Posts: 7638
Registered: 03-25-2007
Message 7 of 26
Viewed 38,577 times
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ilovepizza wrote:
I have over 12 inquiries with in 6 months and started to get turned down by most. I'd say 12 is too much. When I had less than 6 I didn't have any problems.
They seem to think more than two in 12 months is too many, even if one is for a cell phone 
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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05-18-2007 02:58 PM
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Re: How many inquiries is too much?
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MidnightVoice
Super Contributor
Posts: 7638
Registered: 03-25-2007
Message 11 of 26
Viewed 36,786 times
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Equifax does not like 4 in a year, only two for credit
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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06-03-2007 11:29 AM
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Re: How many inquiries is too much?
[ Edited ]
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Tuscani
Moderator
Posts: 6465
Registered: 03-29-2007
Message 16 of 26
Viewed 36,698 times
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rosieposie wrote:
One of my credit card companies has monthly posting of my FICO score on my online account. I notice that it will occasionally say I have had inquiries, yet I have not applied for anything or given permission for anyone to pull my credit. 2 questions: How can I find out who has made the inquiries, and can I moniter when inquiries occur? Can companies do unsolicited inquiries, and if yes, how can I stop it? Thanks
When was the last time you checked your credit reports? You should check them immediately to rule out potential ID theft. Assuming the companies who pulled did not have PP you are $1k richer for each one. See:
Message Edited by Tuscani on 06-07-2007 02:47 PM
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06-07-2007 12:46 PM
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Re: How many inquiries is too much?
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TheNewWorldMan
Super Contributor
Posts: 2485
Registered: 03-15-2007
Message 17 of 26
Viewed 29,083 times
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This is why I recommend young folks get four or five credit cards as soon at their scores pass 700.
N.B.: "Getting" is NOT the same as "charging to the max."
This has several advantages:
1) If you're just starting out, you're not going to be looking for a mortgage. Mom and Dad are probably helping out with the car payment. So if your score tanks 20 points due to the inquiries, no big deal. Within a year it will pop right back up again...plus the gainage from showing up for your financial life on time for that year, and the benefits of low utilization. The youngster's score might drop from 700 to 675 from inquiries and new accounts, but within a few months, it will be back to 700, and after a year and a half, probably 730 or so.
2) This will place the young person in an excellent position to finance an automobile. Now, rather than starting out with one credit card, and having the installment loan chop the person's average age of accounts in half, the installment loan's new age will be weighed against the existing ages of the four or five maturing credit card accounts.
3) By college graduation, the consumer will have a FICO of 760 or so, credit limits in the $5-10K range, and be in a prime position to buy a home.
- - - -
in a credit-scoring postnuclear Stone Age...
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05-06-2008 11:05 AM
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Re: How many inquiries is too much?
[ Edited ]
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pez478
Regular Contributor
Posts: 88
Registered: 04-29-2008
Message 20 of 26
Viewed 27,299 times
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TheNewWorldMan wrote: This is why I recommend young folks get four or five credit cards as soon at their scores pass 700. N.B.: "Getting" is NOT the same as "charging to the max." This has several advantages: 1) If you're just starting out, you're not going to be looking for a mortgage. Mom and Dad are probably helping out with the car payment. So if your score tanks 20 points due to the inquiries, no big deal. Within a year it will pop right back up again...plus the gainage from showing up for your financial life on time for that year, and the benefits of low utilization. The youngster's score might drop from 700 to 675 from inquiries and new accounts, but within a few months, it will be back to 700, and after a year and a half, probably 730 or so. 2) This will place the young person in an excellent position to finance an automobile. Now, rather than starting out with one credit card, and having the installment loan chop the person's average age of accounts in half, the installment loan's new age will be weighed against the existing ages of the four or five maturing credit card accounts. 3) By college graduation, the consumer will have a FICO of 760 or so, credit limits in the $5-10K range, and be in a prime position to buy a home.
This directly addresses a question I have had. I'm a 23-year-old student in grad school (3 more years til I graduate) with 1 CC (Visa) with a limit of $11,250. I have two current loans totaling $14,500 and two loans from undergrad that are paid off. I just checked my FICO score and it is 751 (down from 772 last July, prior to the two current loans). I also own my car outright. I'm wondering if I should get a second CC, and if so what company I should go with. Obviously my CL is more than fine now but I would like to take some proactive steps to continue my good credit scores. Any suggestions? Edited to add: I will definitely be taking out two or three more loans next fall, and probably the same in fall 2009. Don't know if that matters...
Message Edited by pez478 on 05-06-2008 07:43 PM
Me: 8/19/2009 EQ 752
2/11/09 EQ 733 TU 746 EX 738
7/14/08 EQ 750 TU 732 EX 738
4/29/08 EQ 751
7/8/07 EQ 772
He: 3/21/09 EQ 670 TU 685
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05-06-2008 07:38 PM
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Re: How many inquiries is too much?
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tmacar
Regular Contributor
Posts: 91
Registered: 03-25-2008
Message 21 of 26
Viewed 21,416 times
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Just read your post, although it was from some time ago. Be aware that for car loans and home loans, inquiries made within 2 weeks of each other are supposed to be treated as 1 inquiry, because people often shop for the best rate. You should contact both the credit report company and the company that turned you down to find out who is making the error.
Something else useful - You can dispute an inquiry just like you can dispute anything else on your report. Dispute them based on the fact that you not only never authorized all those inquiries, you never even knew they were being made. In most cases, creditors do not bother even responding to a dispute about whether or not they had made an authorized inquiry. And if they don't respond, the inquiry comes off your report.
The one problem with this is that bureaus, especially Experian, sometimes do not want to process disputes about inquiries. They may tell you that an inquiry simply means that someone checked your credit, that if they hadn't in fact checked your credit there would be no record of an inquiry, and that there is therefore nothing to dispute.
If they try to pull that one, point out that too many inquiries hurt your score because it is assumed you applied for credit too often, that you DID NOT make all those applications, and that the inquiries were made without your authorization or even knowledge, and that the FCRA requires that they investigate such disputes.
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05-06-2008 07:53 PM
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Re: How many inquiries is too much?
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debtisgood
Super Contributor
Posts: 1197
Registered: 03-25-2008
Message 23 of 26
Viewed 17,442 times
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denetra9090, Your credit score is likely low right now but that is simply because you have no extended account length or payment history. Within a year your scores should pass 680 and within 2 years, with perfect payment history you could hit 720. I don't recommend any more accounts right now anyway, 5 revolvers is plenty. When you NEED an auto loan, that will only help to increase your score. If you want a rewards card in a few years when you have a couple years of history behind you then you will be in great shape.
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06-22-2008 05:38 PM
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Re: How many inquiries is too much?
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debtisgood
Super Contributor
Posts: 1197
Registered: 03-25-2008
Message 24 of 26
Viewed 17,440 times
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This directly addresses a question I have had. I'm a 23-year-old student in grad school (3 more years til I graduate) with 1 CC (Visa) with a limit of $11,250. I have two current loans totaling $14,500 and two loans from undergrad that are paid off. I just checked my FICO score and it is 751 (down from 772 last July, prior to the two current loans). I also own my car outright. I'm wondering if I should get a second CC, and if so what company I should go with. Obviously my CL is more than fine now but I would like to take some proactive steps to continue my good credit scores. Any suggestions? Edited to add: I will definitely be taking out two or three more loans next fall, and probably the same in fall 2009. Don't know if that matters...
Message Edited by pez478 on 05-06-2008 07:43 PM
pez, The new loans will not help your credit mix as you already have loans and they will ding your average age....the balances likely won't ding you too much. You probably lost the 20 points on the loss of account age as your lone card's length lost its positive effect on your score to some degree. If you don't plan on buying a house in the next 2 years I recommend you obtain 1 store card you will use (it will boost your mix points) and a rewards card or two that you would use as well. Avoid annual fees and look for something that will grow with you. You already have one semi-high CL so another lender will likely give you something respectable (and the 750 score won't hurt either!). These moves will tank your age further now, and will likely hurt your score in the next 6 months, but after that time you should bounce back and be in great shape in 2-3 years.
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06-22-2008 05:42 PM
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Re: How many inquiries is too much?
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cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 26 of 26
Viewed 17,389 times
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ChrisGA43 wrote:
Just trying to understand all of thiis, but from what experience I have recently, inquiries are weighted differently by creditors than how they are used to determine your FICO scores.
By that I mean that yes, inquiries affect your score, but lenders look at the dates and actual number of inquiries over a predetermined period of time for approval purposes- from what I understand. So if your score was 700 with -no- inquiries on your CR's, and it fell to say 690 with 4 hard pulls showing, the new score of 690 wouldnt be as much of an disapproval factor moreso than the 4 actual inquiries would when the creditor does its "overall" assesement on whether to approve or disapprove an application.
So from my understanding, your FICO score dropping from inquiries doesnt affect approval or disapproval as much as how the credit issuers themselves internally weigh inquiries. Else they wouldnt have a need to actually list on a disapproval letter that a person was declined for "too many recent inquiries"...right?
Exactly right!
This also holds true for auto and mortgage inquiries which are deduplicated for FICO scoring purposes as long as they occur within a certain window of time. Even if they are deduplicated so that FICO sees them as one inquiry, they will still show as individual inquiries on a report, and it would still be possible for creditors to deny new credit based on "too many inquiries."
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip.  )
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06-23-2008 12:25 PM
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