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Hard inquiries (not affecting score vs dropping off)

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Anonymous
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Hard inquiries (not affecting score vs dropping off)

Since being on the boards I've learned that hard inquiries/pulls don't affect or impact your score after 1 year then they drop off after 2 years. Sometimes this can happen early.
I've read some people have lots of inquiries that are to become ineffective on their score and some to drop off. When it drops off can't lenders still see that you've once had that many inquiries at one time? What about when they are ineffective to your score won't lenders still shy away? Trying to gain understanding. After doing some counting I saw I had 16 inquiries on EX. 9 are to drop off during 2016 and the remainder ineffective during 2016 but dropping off in 2017. I was stunned at that high number. Was I sleep apping?! Lol
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Anonymous
Not applicable

Re: Hard inquiries (not affecting score vs dropping off)

My comments in blue below.

 


@Anonymous wrote:
Since being on the boards I've learned that hard inquiries/pulls don't affect or impact your score after 1 year then they drop off after 2 years. Sometimes this can happen early.

I've read some people have lots of inquiries that are to become ineffective on their score and some to drop off. When it drops off can't lenders still see that you've once had that many inquiries at one time?

 

No.  If an inquiry drops off your report, then a potential lender cannot see it.

 

What about when they are ineffective to your score, won't lenders still shy away?

 

Great question.  The answer is "quite possibly."  This is because lenders do not always base their decision solely on the score.  Sometimes they pull your report and do a manual review of it.  Thus, suppose somebody had applied for 40 cards in the spring and summer of 2014.  By now those inqiuries are all being ignored by FICO.  But if that person applied for a car or home loan, the lender might view those 40 inquiries as worrisome.

 

There's also other credit scoring algorithms than the ones made by FICO.  Vantage Score is used by a number of lenders, for example, and it considers ALL inquiries, including those 23 months old.

 

Trying to gain understanding. After doing some counting I saw I had 16 inquiries on EX. 9 are to drop off during 2016 and the remainder ineffective during 2016 but dropping off in 2017. I was stunned at that high number. Was I sleep apping?! Lol

 

If I were you I would definitely look at every one of those inquiries and try to understand where it came from.  If you have no idea where any particular inquiry came from, that could indicate identity theft and should be followed up by you.

 

 


 

 

Message 2 of 4
RobertEG
Legendary Contributor

Re: Hard inquiries (not affecting score vs dropping off)

Also, FICO understands that consumers seeking large credit in the form of a mortgage or auto loan are apt to shop around for rates.

Thus, the FICO algorithm treats multimple inquiries that are auto or mortgage related that are made within a given window (usually 14 days) as a single inquiry.

 

You will see all of the inquiries on your credit report, as will others, but if they are auto or mortgage, then the reviewer should realize that they are on the same credit seek, and should to the same as the FICO algorithm, and threat them as only one inquriy in their decision making.

Message 3 of 4
takeshi74
Senior Contributor

Re: Hard inquiries (not affecting score vs dropping off)


@Anonymous wrote:
When it drops off can't lenders still see that you've once had that many inquiries at one time?

They can't see what isn't on the report(s).  Reports don't contain data for every historical point in time.  The reports only contain hard pulls that have not fallen off the reports.

 


@Anonymous wrote:
What about when they are ineffective to your score won't lenders still shy away?

Depends on the creditor and one's credit profile.  A score is just a tool for the creditor to use in its decision making.  The creditor can also consider anything in your reports.  Whether or not inquiries without a scoring impact will matter isn't just a matter of the inquiries.  If one's profile is thin and/or poor enough and/or the creditor's criteria strict enough then they may matter.

 

In general, impact of hard pulls isn't fixed.  Those with thicker profiles in better standing will generally see less impact.  X hard pulls may be no big deal for one person and too many for the next.  Again, one's entire credit profile matters.

 


@Anonymous wrote:
After doing some counting I saw I had 16 inquiries on EX. 9 are to drop off during 2016 and the remainder ineffective during 2016 but dropping off in 2017. I was stunned at that high number. Was I sleep apping?! Lol

Make sure you're regularly reviewing your reports in addition to keeping in mind how often you've apped.

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