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HP's effect on credit scores

Regular Contributor

Re: HP's effect on credit scores


improvingmycredit wrote:

ctb89 wrote:
It cracks me up how concerned people are about INQs. The new account hit will drop you way more than an INQ will. I wouldn't worry about it.

Hey- not picking a fight!  Smiley Happy  I do believe there is something to be said for watching your inqs.  Those with the highest limits and highest scores have the fewest inq.  There is a reason for that.  I know of many who just can't get better limits because they are actively seeking credit.  When I read my own myFICO break down of my current credit situation, it explicitly stated that seeking credit isn't a characteristic of those with the best scores and highest limits. What's your take on this?  Just curious.

OP- Sorry for the thread highjacking!  Smiley Happy

 

To the OP:  I believe how much an inq affects your score depends on where you are in your credit journey.  Those with highest scores and long AAoA experience harder hits with new inqs then those starting out.  I know when I first started out, an inq only cost me a few points.  My last inq was worth 11 points!  I couldn't believe it.  When the new account reported:  no change to score.  Weird.  I expected it to be the other way around.  YMMV though as usual.


No worries. I enjoy the expansion of the discussion. I too am quite particular about my inq's. Great thing about MyFICO is that I was able to go back and review my scores over the years since I've been with MyFICO. I realized that a little over 2 years ago I got two cc's almost back to back and took an ~15 point hit. I recovered in about 90 days actually Smiley LOL So all is calm again in my garden.

 

BTW.... what does YMMV mean? Smiley Embarassed

Community Leader
Valued Contributor

Re: HP's effect on credit scores

YMMV= your mileage my vary  Smiley Happy

Because of the differences in our unique credit files, what may be good for one may not be so for another.  We can only comment though based on our own experiences and what we've read and learned here.  HaHa!  I always put that because one never knows but can only guess how something said my affect an outcome.  Smiley Happy


Starting Score: 642
Current Score: EQ 773, EX 780, TU 777 (All FICO)
Goal Score: 800+

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Frequent Contributor

Re: HP's effect on credit scores


tmbr10 wrote:

Yesterday (5/21/12) I app'd and was approved for a Citibank Master card. Today MyFICO alerts me and says my score has dropped from 812 to 804 based on the new account HP. First HP in over two years!

 

Is an 8 point drop typical for an HP? I was prepared for 4 or 5 points. 8 points seems like alot with all things considered. Are the point reductions relative to the existing credit score? I've read were higher scores are more volatile and subject to greater fluctuations.

 

I assume after my AAofA absorbs this new acct, I'll be taxed a couple more points.

 

Thoughts?


Honestly, its gonna range from each CRA and where your score stands. I took 3 INQ's in one shot on EQ and saw only 5 point drop. Ive also spread them out and saw each hit take 4-5 points for each INQ costing me almost 15 ponts