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Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
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Number of Inquiries and its impact on Credit score/Lenders

 

I have checked my credit reports and here are the number of hard inquiries :

 

Experian -- 0 in the past year, 2 in the past 2 years

 

Equifax --  3 in the past year  (score dropped from 705 to 692 because of 2 new accounts)

 

Transunion -- 1 in the past year (score dropped from 725 to 714 in the past 6 months after new accounts reported)

 

How many inquiries in a year is considered too many? And how much impact does it have on the credit score.  

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 

What strategy should one follow?

 

 

 


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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jsickz32
Posts: 1,987
Registered: ‎06-25-2012
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Re: Number of Inquiries and its impact on Credit score/Lenders

I have between 13-19 inqs on my CRs. Believe it or not when i started my app spree back in 06/12 my scores were all in the 670s. 17 new accounts later and all those inqs and my scores never really dropped. My aaoa was low to start with so that didnt change much.
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bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Number of Inquiries and its impact on Credit score/Lenders

For FICO, only inquiries in the last year are counted.  They stay on your report for 2 years but only impact for 1.

 

By many accounts, the impact is even reduced within that year, so inqs older than 6 months count less than newer ones.

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 


Because ideally you will be at a point where you have all the credit (loans/mortgage/credit cards) you need, so no point in getting any more!   Hopefully at some stage in your financial life a new credit card offer: "$500 cash when you make first purchase" simply appears to be not worth the effort.

Valued Contributor
visorboy1974
Posts: 1,132
Registered: ‎05-17-2010
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Re: Number of Inquiries and its impact on Credit score/Lenders


tennisfan78 wrote:

 

I have checked my credit reports and here are the number of hard inquiries :

 

Experian -- 0 in the past year, 2 in the past 2 years

 

Equifax --  3 in the past year  (score dropped from 705 to 692 because of 2 new accounts)

 

Transunion -- 1 in the past year (score dropped from 725 to 714 in the past 6 months after new accounts reported)

 

How many inquiries in a year is considered too many? And how much impact does it have on the credit score.  

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 

What strategy should one follow?

 

 

 


I'd say the impact on score is negligible.  Maybe a handful of points max.  I have 10 INQs on my EX report and it's score is higher than EQ, which has 0.      

Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
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Re: Number of Inquiries and its impact on Credit score/Lenders


bs6054 wrote:

For FICO, only inquiries in the last year are counted.  They stay on your report for 2 years but only impact for 1.

 

By many accounts, the impact is even reduced within that year, so inqs older than 6 months count less than newer ones.

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 


Because ideally you will be at a point where you have all the credit (loans/mortgage/credit cards) you need, so no point in getting any more!   Hopefully at some stage in your financial life a new credit card offer: "$500 cash when you make first purchase" simply appears to be not worth the effort.


Thanks. I hope to be there in the next few years!!!


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

Take the FICO Fitness Challenge
Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
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Re: Number of Inquiries and its impact on Credit score/Lenders


visorboy1974 wrote:

tennisfan78 wrote:

 

I have checked my credit reports and here are the number of hard inquiries :

 

Experian -- 0 in the past year, 2 in the past 2 years

 

Equifax --  3 in the past year  (score dropped from 705 to 692 because of 2 new accounts)

 

Transunion -- 1 in the past year (score dropped from 725 to 714 in the past 6 months after new accounts reported)

 

How many inquiries in a year is considered too many? And how much impact does it have on the credit score.  

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 

What strategy should one follow?

 

 

 


I'd say the impact on score is negligible.  Maybe a handful of points max.  I have 10 INQs on my EX report and it's score is higher than EQ, which has 0.      


Wow , thats interesting


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

Take the FICO Fitness Challenge
Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
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Re: Number of Inquiries and its impact on Credit score/Lenders


jsickz32 wrote:
I have between 13-19 inqs on my CRs. Believe it or not when i started my app spree back in 06/12 my scores were all in the 670s. 17 new accounts later and all those inqs and my scores never really dropped. My aaoa was low to start with so that didnt change much.

Thats cool to know.


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

Take the FICO Fitness Challenge
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09Lexie
Posts: 25,030
Registered: ‎09-13-2012
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Re: Number of Inquiries and its impact on Credit score/Lenders


visorboy1974 wrote:

tennisfan78 wrote:

 

I have checked my credit reports and here are the number of hard inquiries :

 

Experian -- 0 in the past year, 2 in the past 2 years

 

Equifax --  3 in the past year  (score dropped from 705 to 692 because of 2 new accounts)

 

Transunion -- 1 in the past year (score dropped from 725 to 714 in the past 6 months after new accounts reported)

 

How many inquiries in a year is considered too many? And how much impact does it have on the credit score.  

 

I understand  having no inquiries is great, but whats the point in having 0 inquiries, great credit score and not use it for obtaining good loans, CLs etc.

 

What strategy should one follow?

 

 

 


I'd say the impact on score is negligible.  Maybe a handful of points max.  I have 10 INQs on my EX report and it's score is higher than EQ, which has 0.      


Are your bureaus exactly the same (AAOA, baddies, etc)?

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
0

Re: Number of Inquiries and its impact on Credit score/Lenders

IMO, inquiry damage is overrated. Usually the impact is seen when going from 0 to 1 or 1 to 2 inquiries with no new accounts and a higher FICO. I also had a high inquiries count inside a year at 30 or so each on EQ and EX back in the day (when we could pull our EX FICO on here). After a few it doesn't matter anymore and there's no damage.

Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: Number of Inquiries and its impact on Credit score/Lenders

My impression is that over 5 there's little additional impact.

 

But remember, your score is the first step in being considered by a lender.  I've seen posts where a person with a decent score was rejected for "too many recent inquiries".  Barclays is said to be notorious for that.

 

Personally, I've reached the point where I don't need new accounts so don't choose to incur inquiries.  In th three years from BK7 I went from maniacally applying to making no applications except for my mortgage (over a year).  Now I'm gardening and hope to reach zero inquiries before I make another app.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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