Inquiries: 1 yr vs. 2 yrs

[Anonymous]

I've read that after 1 year an inquiry isn't calculated in Fico score. The inquiry will stay for 2 years. I am wondering if the score will only be effected after 1 year or also have effect when off report completely? Any wisdom to share??

[bada_bing]

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@Anonymous wrote:
I've read that after 1 year an inquiry isn't calculated in Fico score. The inquiry will stay for 2 years. I am wondering if the score will only be effected after 1 year or also have effect when off report completely? Any wisdom to share??

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The inquiry has no effect on FICO score after 1 year, but if the inquiry was from a successful new account

application, the "new" account has an effect on score. Accounts are considered as "new" for 2 years and

have a diminishing input into scores up till the 2 year mark.

Score is only one simplified metric of a credit report. Under manual review or proprietary inhouse risk

scoring models, the visible inquiry can have a direct influence on credit decisions  up until it disappears off

a credit report at 2 years. Same goes with the bunched inquiries counting as one for FICO scoring. The

bunched inquiries are still all visible and may input into credit report evaluations beyond just a simple FICO 

score.

[Anonymous]

Awesome bada_bing, thanks for the clarity!!

[Thomas_Thumb]

FYI - 

Some credit scoring models do look at inquiries for the full 2 years. Examples include:

1) VantageScore 3.0

2) Credit based insurance scoring models (CBIS) from LexisNexis.

[Anonymous]

Good to know..