Understanding FICO® Scoring

[ilovepizza]

For example. If a person has 10 inquiries for credit card apps. Can they loose any more points if they racked up another 50 or 90 inquiries from the same type of applications. Or is their score as low as it will go? Answers to this determine my next credit app.

[MidnightVoice]

One would imaging that anyone looking at a potetial creditor who had just made 90 enquiries for credit might well ponder long and hard as to that persons suitability.  It it was over 100, ...... 

[ilovepizza]

I think I've hit rock bottom at -20 or -30 points off my score. So wondering if it will hurt "my score" if I add some more. I figured I'd get all my apps done now so years later I won't have to. But if it will cost me more points, well, I may not.

[MidnightVoice]

But what will you do with 50 new cards? 

[ilovepizza]

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MidnightVoice wrote:

But what will you do with 50 new cards?

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Rack up on all the low apr offers.

[Revike]

First, you'd better be sure you won't be needing a mortgage, auto loan, or other loan in the next 12 months, where there's a possibility that a lender would look at your actual report instead of just your score.

Second, you might try to find out (if you can) whether excessive CC inquiries have a more significant effect on your bankcard-enhanced FICO score. A zillion inquiries might decrease your classic FICO by 30 points, but might decrease your bankcard-enhanced FICO by 60 points, and you might find yourself with a bunch of denials in response to all your inquiries ...

[MidnightVoice]

And you might have to quit your day job to keep track of them 

[ilovepizza]

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Revike wrote: and you might find yourself with a bunch of denials in response to all your inquiries ...

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Didn't take many inquiries before hot turned to cold. I haven't applied for anything new yet. Going to let things cool down. I only have a few more things to get out of the way, and then no more inquiries for a almost 2 years until I app for my mortgage. Everything else I am adding to my credit portfolio is done with out inquiries. For those of you who take advantage of the 0% aprs you also can understand the benefits. At the same time I have a plan involved that has been raising my score. I wasn't worried about inquiries since they drop off after 1-2 years. My target score is for 2009. I have time to let inquiries drop off which is why I am so casual with them.

Message Edited by ilovepizza on 05-23-2007 11:44 AM

[Revike]

Re: bankcard score

There are special FICO scoring versions usually available only to lenders. One is an "auto-enhanced" FICO score that emphasizes auto loan history:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=1231

and another is the "bankcard-enhanced" FICO score that emphasizes credit card history. Many credit card companies use your "bankcard-enhanced" score when reviewing a CC application.

Some people with Providian/WaMu cards can receive a copy of their "bankcard-enhanced" FICO score, based on their TU or EX credit report (depending on geographic location).

[ilovepizza]

Thanks, Very informative link. I understand. :-)