12-12-2012 11:59 AM
FICO, through its analysis of risk predictive value, has determined that credit inquiires lose most, if not all, of their value in predicting chance of delinquency after one year.
So they chose to exclude them from scoring at that point.
The CRAs make their own determination of what their clients want to see. The two year credit report inclusion period for inquiries is totally their administrative policy.
Apparently, they feel their clients still want to see inquiries over one year, but have set a two year limit.
The degree to which any creditor or business bases their decision making on inquiries over one year is totally up to them. They are no longer automatic factors due to FICO score exclusion. I would suspect that most creditors, and particularly businesses, that pull a CR take the same general view as FICO. Little risk predictive value in inquiries over one year. However, FICO is a limited analysis, pertaining to risk of delinquency. A creditor might view numerous inquiries as indicative of something else, such as desparation for credit, and give them weight, such as if credit was not approved and the inquiree was a low-market creditor with low qualifications.