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Cost of inquiries?

Contributor

Cost of inquiries?

Anyone know on average how many points each inquiry costs you on your credit report?  I am curious about the impact to my score based on a couple of recent inquiries.
Message 1 of 14
13 REPLIES
Established Contributor

Re: Cost of inquiries?

i noticed a 3 point difference when a new inquiry was added--so if you have 10 inquiries---that's 30 points. other's might have other opinions.

I am curious to--tuscani? How much does one recent inquiry cost you?
Message 2 of 14
Frequent Contributor

Re: Cost of inquiries?



rifleman wrote:
i noticed a 3 point difference when a new inquiry was added--so if you have 10 inquiries---that's 30 points. other's might have other opinions.

I am curious to--tuscani? How much does one recent inquiry cost you?

Well for me last month I started with a 744 score for Equifax (my highest) At the time my utilization was 2%.  I applied for 2 cards that I knew would pull EQ and got both with a average cl of 5000.00 each.   After the inquiries and cls hit my score dropped to 709 
Message 3 of 14
Established Contributor

Re: Cost of inquiries?

wow that's a crazy drop! I wonder how much those new TL's reduced your average account age. That's big hit

How long will it take someone to recover those lost points due to new tradelines such as the ones he mentioned? I myself opened new accounts-3 of them with $10,000 of average new credit. One of them just reported to the CRAs and there does not appear to be a score drop--yet
Message 4 of 14
Established Contributor

Re: Cost of inquiries?

I also wonder, are inquiries a real secret formula that no one should know?--Not even round numbers? I don't think I've ever seen anyone here give real number ranges--they just say "not that much"
Message 5 of 14
Established Contributor

Re: Cost of inquiries?

not that much.
Message 6 of 14
Frequent Contributor

Re: Cost of inquiries?



rifleman wrote:
wow that's a crazy drop! I wonder how much those new TL's reduced your average account age. That's big hit

How long will it take someone to recover those lost points due to new tradelines such as the ones he mentioned? I myself opened new accounts-3 of them with $10,000 of average new credit. One of them just reported to the CRAs and there does not appear to be a score drop--yet

I did get back 9 of those points  but also found out that one of the cards hasn't officially been reported to the cra's yet.  They even took their sweet time sending me the card yet when I applied I got instant approval LOL.  Bottom line for me, EQ went from being my highest to my lowest score
 
It did knock my average account age down a good notch.  My problem was I filed chapter 13 7 yrs ago so while my scores jumped from 680's to 740's it also whiped out a lot of old accounts when the bankruptcy fell off
Message 7 of 14
Moderator Emeritus

Re: Cost of inquiries?

Cost of inqs is difficult to even guess. There other factors involved especially if the inq also results in a new TL, particularly CCs or other revolving accounts. Lets say you applied for something, ok now you have one more inq in addition to what you already had (better if you had 0 inqs before you applied) (first potential negative), now the new account lowers your average age for your accounts (second negative) but improves your util% (positive). Then FICO scrambles and scrambles and spits out a new score and it's never the same for everyone.
 
I have heard of one inq alone dropping a score by 15 points, while others report an increase in 10. For those with an inq and new revolving TL, same thing, I have heard of scores dropping 30 points or increasing by 10 or 20 points.
 
 
 
Message 8 of 14
Established Contributor

Re: Cost of inquiries?

The effect of a new inquiry depends on how many other inquiries you've had within the last 12 months. If you had 0 inquiries and add 1 or 2 new inquiries, each may ding you 10 points. If you already have 10 inquiries, and add 1 or 2 new ones, each may only ding you 2-3 points.

When a new TL is added, your "youngest account" age drops to 0 months, your count of "new" accounts (less than 6 or 12 months) increases by one, and your average age of accounts decreases. The combination of those factors will decrease your score also.

You will regain points as inquiries drop off over the following 12 months, and as your new account(s) mature. You will also regain points as the average age of accounts goes back up, but that will be a much slower process.
Message 9 of 14
Moderator Emeritus

Re: Cost of inquiries?

It's impossible to accurately say Y will cost or gain you X number pts. Never believe anyone who tries to tell you otherwise.
Message 10 of 14