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How many points do inquiries or opening accounts affect my score if my score is lower?

New Visitor

How many points do inquiries or opening accounts affect my score if my score is lower?

I have a lower score (500 or so) mainly it says because of lack of credit history and balances. I also had 20 inquiries or so in the past year, partly because I was searching for a car. How many points does an inquiry reduce my score? Does it matter where the inquiry comes from (Automobile, Bank, or Retail Credit Card Company)? Does it reduce my score when I am denied something? Also, how many points does opening a new account lower it? I know this depends on the account, such as a card retail?
4 REPLIES
Moderator Emeritus

Re: How many points do inquiries or opening accounts affect my score if my score is lower?



Advait wrote:
I have a lower score (500 or so) mainly it says because of lack of credit history and balances. I also had 20 inquiries or so in the past year, partly because I was searching for a car. How many points does an inquiry reduce my score? Does it matter where the inquiry comes from (Automobile, Bank, or Retail Credit Card Company)? Does it reduce my score when I am denied something? Also, how many points does opening a new account lower it? I know this depends on the account, such as a card retail?


165
 
JK... No one can tell you how many points any certain event will lower or raise your score. Generally Inqs will cost you 2-9 pts each. The nice thing about auto and home is all inqs within a 14 day period only count as once against your score. And opening new accounts generally lowers your score initially, but will help you over the long term.
Regular Contributor

Re: How many points do inquiries or opening accounts affect my score if my score is lower?

I just had 4 inquiries (9 in last 12 months) and 2 new accounts added to my reports i only lost 2 points on EQ. there is no set number as to how many points you will lose. 20 inquiries in the last 12 months you might lose more as to what type of inquiry they are i don't believe there is a difference. there are just too many other factors in the scoring process to determine how many points you will lose. New accounts may drop your score from the onset but with low utilization and age it will increase.
Moderator Emeritus

Re: How many points do inquiries or opening accounts affect my score if my score is lower?

If we new exact point gain/loss we definitely would all have an easier time managing our credit. Some of us try to post different events to show our personal experiences. Like they said you usually take a short term hit before the long term gain as long as you pay on time and keep utilization low if it is a cc. 20 inquiries in a year is definitely affecting your score if you did not shop for the rates within 14 days. Are you using a monitoring service like Truecredit or MYFICO? You should if you are trying to build your credit! Myfico's scorewatch and the suze orman kits have sico simulators so you can "predict" these types of occurrences based on your personal credit profile.
Regular Contributor

Re: How many points do inquiries or opening accounts affect my score if my score is lower?

I think it really depends on how thick your file is. If you only have one reporting tradeline, opening a new account is a huge risk.

If you have more than fifty (as I do), opening a new account is less of a risk.