Reply
Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

How much does a hard inquiry hurt your credit score

How much does a hard inquiry hurt your credit score? Here's my situation.
 
I have just done 2 within a month because I opened up 2 new cards. Now my total credit limit climbed $10,000 within the month as well. (That was probably a 25% increase in available credit, and I have not incurred any more debt.)
 
Having said that, might my FICO actually be higher because my utilization went down, thus offsetting the hard inquiries?
 
 
Moderator Emerita
Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
0

Re: How much does a hard inquiry hurt your credit score

Yup. Especially if the inqs were on two different CRA's, i.e., one on EQ and one on EX.

Four things happen when you open a new account:

- probably a slight point drop for the inq, only on that particular CRA,
- point drop for a new account once it starts to report,
- potential point increase for higher overall credit limit and lower overall util, and
- point increase for a new tradeline with clean history.

If you pull your scores far too often (don't ask how I know this), you might see:

- maybe around 2-3 points gone on the report that had the inq,
- next maybe around 5-10 points gone (more if you have really high scores) on all three reports when the new account posts for the first time,
- at the same time, maybe a score increase if the new account really helps your util, and
- after a month or so, gradual score increases as the new, clean tradeline continues to report with clean payment history and low util.

You might not lose points for the inq if it's your only one, or alternatively, if you already had a bunch, and this is just yet another.
* 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
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: How much does a hard inquiry hurt your credit score

IMO, inquiry hits are over-rated. I just added #28 on EX without any hit. In fact, absolutely for sure, of the past 10 inquiries, there has been no score change. I also just went from 0 to 1 on TU without a score change. I'm not saying inquiries don't hurt you, I do think the impact is very minimal.
 
I think that any hit people see are either utilization that they haven't factored in (assuming the new acct isn't reporting). Also, people may be seeing their score drop, but underestimate the negative impact of adding a new acct.
Frequent Contributor
Posts: 285
Registered: ‎03-29-2008
0

Re: How much does a hard inquiry hurt your credit score

That being said - I just applied for a new account (and was accepted) yesterday. If I want to apply for one more, should I do it right now, before it posts as a new account?
 
Thanks!
Moderator Emerita
Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
0

Re: How much does a hard inquiry hurt your credit score



ace9848 wrote:
That being said - I just applied for a new account (and was accepted) yesterday. If I want to apply for one more, should I do it right now, before it posts as a new account?
Thanks!



I did all mine in one day, pretty much for this reason. Also, if the next CCC pulls a different credit report than the other(s), they won't even know that you applied anywhere else.

It doesn't sound like you're about to go berserk with app'ing, but everyone should realize that your new accounts will probably soft you in the next month or two, so they might not know today that you opened several accounts, but they will next month. So keep your nose clean in terms of util and all. Good luck!
* 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
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
0

Re: How much does a hard inquiry hurt your credit score



ace9848 wrote:
That being said - I just applied for a new account (and was accepted) yesterday. If I want to apply for one more, should I do it right now, before it posts as a new account?
Thanks!



IF you need the account go for it now.
Regular Contributor
Posts: 141
Registered: ‎09-29-2014
0

Re: How much does a hard inquiry hurt your credit score

I know this post is old but in case anyone is reading it I wanted to put my two cents in. My understanding is inquiries have a bigger impact depending on what else is in your credit file. If you are fairly new to credit and you have high utilization and suddenly start applying for multiple accounts it's a big red flag. But if you have a long credit history and low utilization and then suddenly apply for several accounts it won't impact ️your score nearly as much. I could be wrong. Maybe Fico treats it the same but at least I know creditors look at it that way.
MyFico TU-728, EX-727, EQ-720
Barclay rewards MC 6,050| Kays 7,600| Barclay NFL Visa 6,500| Amex green NPSL| Care Credit 8,100| Chase Freedom 4,000| Amex BCE 1,000| Discover-it 8,000
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.