Understanding FICO® Scoring

[CZnn]

How long do inquires last in credit report? is it one or two years.. Also, how many years does it need to pass, for a new account to be consider old? I have been searching for store credit, I was approve for some of them. But now when I app for another store. I received a later saying too many inqui, and new account.

[lurknomore]

INQs stay on your report and are visible to potential creditors for 2 years, but they only count in FICO scoring for 1 year.

It is generally believed that the older they are, the less relevant they are in a creditor's decision-making process, especially after the reach the 1 year mark.

Message Edited by lurknomore on 07-27-2008 06:53 PM

[siang]

I have about 20 inq on my CR from when I went wild trying to get a decent CC. How much do these affect my score? And say they are 6 months old, do the affect it the same as if they were fresh?

[fused]

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CZnn wrote:

Also, how many years does it need to pass, for a new account to be consider old? I have been searching for store credit, I was approve for some of them. But now when I app for another store. I received a later saying too many inqui, and new account.

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- generally speaking, an account is no longer new once it's 12 months old

- some creditors will deny you credit if you have too many inqs and new accounts...there is no magic number though. Every creditor has their own underwriting, some are strict while others are lax.

[CZnn]

Thanks for the information...

[CZnn]

I was approved this month for "gap visa " for $4000.00 this is the highest credit limit card that I have. I also have around 12 more cards. But my question is should I stop seraching for credit...

[fused]

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CZnn wrote:

I was approved this month for "gap visa " for $4000.00 this is the highest credit limit card that I have. I also have around 12 more cards. But my question is should I stop seraching for credit...

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Well that's a loaded question? The reality of it all is that it's not so much about how many cards you have rather it's how well you manage them. Now this is just my opinion, others might disagree, but I believe in keeping it simple. If I could do it all over again, this is what my credit file would look like:

2-3 MCs or Visas

1 Discover

1 Amex

1 store or gas card

1 open line of credit such as OD protection

1 open installment such as an auto, student or personal loan

1 open mortgage

And this is it. Many people have scores well over 780, even well over 800, with a file similar to this. So to answer your question, it's up to you to decide how many CCs you want. But if it was me, I would not keep apping. Try and work on increasing your CLs w/o hard inqs instead...the FICO gods prefer you do this.

[Timothy]

I am getting closer to a perfect mix on personal accounts -(well when the rest of the accounts age to a year old)

1 mortgage

1 auto (0% apr)

1 SL

3 Amex (1 charge, 2 revolving)

3 store (HD, Kay, sears)

3 Visa (WAMU, AZFCU, CCCU)

3 MC junny, Wamu, capone  

1 Discover  

1 HELOC (AZFCU)

1 LOC (AZFCU)

Only the Mortgage, Capone, WAMU Visa were pre-my FICO and I am really close to swapping out the mortgage if rates go down this fall,

Only thing I am paying interest on is the mortgage- everything else is PIF, deferred or 0%

Only Amex Green ($95) and Delta ($30) have AF. So no great canidates to prune,  

Message Edited by Timothy on 07-27-2008 11:11 PM

[fused]

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Timothy wrote:

I am getting closer to a perfect mix on personal accounts -(well when the rest of the accounts age to a year old)

1 mortgage

1 auto (0% apr)

1 SL

3 Amex (1 charge, 2 revolving)

3 store (HD, Kay, sears)

3 Visa (WAMU, AZFCU, CCCU)

3 MC junny, Wamu, capone  

1 Discover  

1 HELOC (AZFCU)

1 LOC (AZFCU)

Only the Mortgage, Capone, WAMU Visa were pre-my FICO and I am really close to swapping out the mortgage if rates go down this fall,

Only thing I am paying interest on is the mortgage- everything else is PIF, deferred or 0%

Only Amex Green ($95) and Delta ($30) have AF. So no great canidates to prune,  

Message Edited by Timothy on 07-27-2008 11:11 PM

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Too many CCs dude!

[umbrellagirl]

It"s 2 years but dispute the old ones sometimes that work. you did not authorizes