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Are all hard pulls for credit weighted the same regardless of your score?
Sorry if this has been asked before.
If not, why not?
veracious
The answer is no.
FICO is not a single scoring algorith, even within the same generic release. It has at least a dozen different algorithms it uses in scoring any consumer's credit file. It first places you into generic categories, such as lenght of credit and type and severity of prior derogs, % util, etc, to first determine which algorithm they are going to use to score you. It then goes through a tree of options under each generic category, leading to your placement into a final sub-generic scoring algorithm. These are commonly called scoring "buckets" on this site.
You can change buckets based on criteria such as payment history that have no direct effect on scoring of new inqiries, but could very well change, with the same new inquiries, how much weight they are given in you new bucket. The same goes for most individual items in credit scoring.
To really complicate matters, even the basic category of algorithm that is used, before any bucketing, is marketed separatly by Fair Isaac to suit the requests of its various customers. Each CRA gets its own customized set of algorithms. Auto lendors and mortage lendors emphasize different things, and thus contract algorithms for their business needs that do not weigh things the same.
@RobertEG wrote:The answer is no.
FICO is not a single scoring algorith, even within the same generic release. It has at least a dozen different algorithms it uses in scoring any consumer's credit file. It first places you into generic categories, such as lenght of credit and type and severity of prior derogs, % util, etc, to first determine which algorithm they are going to use to score you. It then goes through a tree of options under each generic category, leading to your placement into a final sub-generic scoring algorithm. These are commonly called scoring "buckets" on this site.
You can change buckets based on criteria such as payment history that have no direct effect on scoring of new inqiries, but could very well change, with the same new inquiries, how much weight they are given in you new bucket. The same goes for most individual items in credit scoring.
To really complicate matters, even the basic category of algorithm that is used, before any bucketing, is marketed separatly by Fair Isaac to suit the requests of its various customers. Each CRA gets its own customized set of algorithms. Auto lendors and mortage lendors emphasize different things, and thus contract algorithms for their business needs that do not weigh things the same.
I opened this reply to try and highligt the important statements in your post, but I didn't know where to begin or end.
So in my opinion your response was an excellent one. Take note all newbies! There is a myriad of intracacies involved.
Thanks, Robert EG!!!