Understanding FICO® Scoring

[scorewatcher]

Hello all, I have been working on my score for about 5 months and have gone from 617 to 662. I recently received a pre-approval for a house loan based on my 662. My wife's car died and we recieved financing for a new one with no problems. The inquiry for the car ... along with the pre-approval for the house about a month back dropped my score by 4 points! 2 questions: 1. how can you abtain necessary credit like mortgage and car without taking a hit. (We couldn't do all inquiries within the 2 weeks because we didn't know we would need a car) 2. How long will this 4 point loss stay on my report? I have to get this score back up above 660 before closing on the house. Thanks in advance for any help.

[Tuscani]

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scorewatcher wrote:
Hello all, I have been working on my score for about 5 months and have gone from 617 to 662. I recently received a pre-approval for a house loan based on my 662. My wife's car died and we recieved financing for a new one with no problems. The inquiry for the car ... along with the pre-approval for the house about a month back dropped my score by 4 points! 2 questions: 1. how can you abtain necessary credit like mortgage and car without taking a hit. (We couldn't do all inquiries within the 2 weeks because we didn't know we would need a car) 2. How long will this 4 point loss stay on my report? I have to get this score back up above 660 before closing on the house. Thanks in advance for any help.

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1. You can't. If you seek\apply for credit you get inqs which will impact your scores.

2. The inquiry stays on your reports for 2 yrs. But only impacts your score for 12 months, with the previous 6 months holding the most weight.

PS... I strongly discourage you applying for ANYTHING until you close on your home.

[scorewatcher]

Thanks friend, Does this mean my score might regain the 4 points in 6 months or will it be a full year?

[cinoeye]

Inq usualy drops 2-5 points, and 4 points are normal. Just wait and see hpw your score will go 10-15 in next couple od months just after you start paing house and car.

[Tuscani]

Yes, your score will increase once you start gaining positive history on the new Auto loan.