More info on FICO 08 straight from Fair Isaac

[haulingthescoreup]

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@RobertEG wrote:

Hereis what FairIsaac is currently postun in their Credit Information Center regarding inquiries:

What to know about "rate shopping." Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though youre only looking for one loan. To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.

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OK, this is a nasty little twist! Are they saying that the inqs are only de-duped if you get the loan???

[Anonymous]

I interpret this as saying that with FICO 08,  all auto or mtg inquiries within 45 days of one another only count as a single inquiry.  Which would mean that ALL of these within 45 days would need to be deleted for it to move your score at all.

Since most everyone only buys one house or one car at a time, they are grouped together.  But since many of us would open up multiple credit cards within a 30-45 day period, each one of these inquiries dings the credit.

What I would like to see is inquiries for opening up bank accounts no longer be considered "hard" inquiries, since you are not taking on additional debt.  This whole notion of "overdraft protection" is a joke.   From what I have read, insurance, employment and other inquiry types are always "soft" inquiries because you are not taking on new debt.  These institutions are only checking the credit to determine what rate to charge you.   For bank accounts, they are pulling only to satisfy the Patriot Act and to ensure you haven't stiffed other banks, i.e. they also pull ChexSystems or the like.

[Anonymous]

says spread out balances among a few cards especially now that rules don't penalize multiple credit apps.  sounds like ccs not auto ot mtg.  anyone??????