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ShebaDiva
Posts: 4
Registered: ‎01-14-2013
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Inquiries

Hi Everyone!

 

Question: how many points do inquiries take from your score? I applied for a cc and the reason they denied me was Excessive Inquiries. I have. Post BK did charge date of Oct 2012.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Inquiries

Inquiries cost about 5-10 pts on average per inquiry. It makes up about 10% of your score. Inquiries look worse to lenders if you have a lot of derogatory items on your credit report as it predicts you are high risk. Until your credit is cleared up, I wouldn't apply for anything else until you have 0-1 inquiries.

Which type of BK did you file and what CC did you apply for?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Inquiries

Inquiries stay on your report for two years.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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llecs
Posts: 32,880
Registered: ‎08-04-2007
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Re: Inquiries


MovingForward_2012 wrote:
Inquiries cost about 5-10 pts on average per inquiry. It makes up about 10% of your score. Inquiries look worse to lenders if you have a lot of derogatory items on your credit report as it predicts you are high risk. Until your credit is cleared up, I wouldn't apply for anything else until you have 0-1 inquiries.

Inquiries do report for two, but only have a FICO impact for one. It's a YMMV on lenders. Some will say "excessive inquiries" if you have one inquiry. Some will say that after many inquiries. It depends on how many and how recent they are.

 

On the FICO impact per inquiry, it's not a set amount. At one point I had 30+ each on EQ and EX and all were inside one year. After a couple or so FICO will typically ignore additional inquiries. When I was adding them my FICO from here wasn't moving any. It also depends on how many are there prior to the one being added AND how many new accounts are reporting and how recent those accounts were in relation to it all. That's also a part of the 10%.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Inquiries

Yes they don't impact your score as much after 1 year but lenders will see those inquiries for 2 years.

I don't recommend racking up 30 inquiries with a recent bankruptcy just discharged on your credit report. 30 INQS on a report of a person with no BKs and a fico of 700+ doesn't look as bad as it would for you even though 30 INQS still looks bad to lenders regardless.

I will have 5-6 INQS after I close on my mortgage loan this month and I plan to garden after that and wait until some of them fall off. My INQS are from a new credit card in July, a mortgage preapproval check in July, a new car in Nov, a new credit card in January, and two mortgage preapprovals in Dec and Jan as I had to take advantage of incentives by going through the builder's lender. I expect to get one more INQ this month as they run your credit again before you get cleared to close to make sure your credit hasn't dramatically changed. For mortgages, you have to write a letter of explanation for each inquiry on your credit report and 30 letters of explanation could make the underwriter very nervous and then you could end up denied a mortgage loan.

Toyota car dealerships are notorious for placing a lot of INQS on your credit report from shopping your loan...someone here said that they got 13 just from one Toyota Dealership. Luckily scoring wise, the 13 INQS are treated as 1 for scoring purposes since they occurred in the same month. So if you have to shop lenders, it is best to do it all together within a short period of time as that way, they all count as 1 INQ for scoring purposes.

I have never gotten anywhere near 30 INQS in my life. I think 10 INQS is the most a person should have at one time as after you get new credit, you need to stop and garden.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
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Re: Inquiries

OP didn't mention having 30 inquiries. I did. I was relaying the FICO impact to adding more and more. Inquiry damage is overrated per FICO and it isn't a flat 5-10 per inquiry. I certainly though would never advocate someone applying for 60+ times in a row like I did. Stupid credit phase. Only apply for credit that you need and when it comes to applying for a home, aim for 0 inquiries. When we applied I had 1 across all 3 (DW had 0) and I did have to explain that one.

 

 

 

 

 

 

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Inquiries

Right. I understood that and was telling OP that I wouldn't advise for her to rack up 30 INQS. That is all I was saying. The 5-10 pts per INQ is a YMMV type of thing. I got no change to my score when the last 2-3 INQS posted so you're right, after so many, your score typically stops getting dinged. But I remember each INQ I got when I applied for things when my BK was still fresh, my score dropped. One INQ cost me like 20 pts back then so I think the score effect is weighted differently in different scoring buckets.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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