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How Many Points Is An Inquiry Worth

SOLVED
Frequent Contributor

How Many Points Is An Inquiry Worth

Does anyone know if a credit card inquiry will cost from 3 to 5 FICO points, does an inquiry for an auto loan cost the same 3 to 5 points?  I am thinking of testing the water for an auto loan and if declined, I will re-apply in February or March.  By then, I should have recovered from the 3 point hit.
Message 1 of 7
6 REPLIES
Moderator Emeritus

Re: How Many Points Is An Inquiry Worth

If an inquiry is going to cost you points, then it will cost those points regardless of what type of company pulls the hard.
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Do what is true in spite of the consequences--your future is only as true as you are.
Message 2 of 7
Moderator Emeritus

Re: How Many Points Is An Inquiry Worth

Remember, depending on the CRA, auto inquiries within a 14 or 30 day window count as one inquiry. So if you rate shop and app 15 times during a 2 week period, then you only have one inquiry as read by FICO (but your report will show the 15).

 

Inquiry damage is overrated. It is lumped into the "new credit" portion of the FICO formula. 15 of my last 20 inquiries resulted in no score change when pulling the FICO report the day before and the day after. I did see damage to my CR for the first time this week when I added 3 inquiries on EQ and I lost 5 points off EQ. Most damage occurs when the score is closer to 750 or if your "new credit" isn't so bad (mine was not good or good).

 

Most people think that adding a CC will improve their score. Unless your util is super high or if your mix of credit is bad, you'll likely see a score drop up to the 20-25 point range. Some see that score drop and mentally link it back to the inquiry, which isn't true.

 

As Byrd mentioned, FICO doesn't care if it is a CA inquiry, a CC inquiry, a loan inquiry, a mortgage inquiry, a car inquiry, etc. An inquiry is an inquiry.

Message 3 of 7
Valued Contributor

Re: How Many Points Is An Inquiry Worth

I agree that scoree damage is overrated.

 

Unfortunately Chase Protection ID and TrueCredit recognize the inquiries performed by Collectors in their FAKO scoring.

So will do lender during a manual review.

 

I would care more about not to have CA hard inquiries at any time. 

Feb 08 550s - Oct 08 700s
Thank you MyFico!
Message 4 of 7
Regular Contributor

Re: How Many Points Is An Inquiry Worth

Just to add to this, when shopping for home loans I had about 5 inqs. over a 3 month period.  Ultimatley I ended up losing 10 points, but 2 month later it bounced back.  From what I have seen, if 3-10 points is going to effect you that much, you may want to hold off until you are in a better position.  If not, then don't worry too much about it as they seem to bounce back pretty quick even though technically they are still figured into your score for a year if I remember correctly.
Message 5 of 7
Valued Contributor

Re: How Many Points Is An Inquiry Worth

JR just to make it clear. You may have gained your points back but it didn't come your inquiries having any less of a penalty, they cause the same deduction for a full year.
Message 6 of 7
Moderator Emerita

Re: How Many Points Is An Inquiry Worth

Since mortgage inquiries are "de-duped" (only one within a given time frame counts for scoring), perhaps they were initially scored individually, and then the system caught up and ignored a few. Just a guess, though.

But as DIG said, we've got it on good authority that an inq hurts the same amount for a year, and then not at all. The hurt from the new accounts that result from inqs does fade --at one month, three months, six months, and a year. So there's another possibility.

That's the problem with trying to attribute score changes to specific actions. There's usually enough other stuff going on that it's hard to isolate individual effects.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 7 of 7