topic Re: The devastating inquiry in Credit Cards

The devastating inquiry

ecxpa — Mon, 19 May 2014 11:47:26 GMT

So it is my understanding that inquiries affect your credit score for a year but remain on your report for 2 years.. How about with lenders, how long do inquiries impede credit card approvals? Is this a YMMV with different lenders.......I see some post that report being denied due to inquiries and 3-6 mos later get approval without any other changes in CR. Even I have been told 'wait 3 mos and reapply". So do lenders consider inquiries less after 3-6 mos across the board or only certain lenders?

Re: The devastating inquiry

Anonymous — Mon, 19 May 2014 11:58:00 GMT

@ecxpa wrote:
So it is my understanding that inquiries affect your credit score for a year but remain on your report for 2 years.. How about with lenders, how long do inquiries impede credit card approvals? Is this a YMMV with different lenders.......I see some post that report being denied due to inquiries and 3-6 mos later get approval without any other changes in CR. Even I have been told 'wait 3 mos and reapply". So do lenders consider inquiries less after 3-6 mos across the board or only certain lenders?

The variability comes from the way the app can be reviewed. Inquiries up to a year old will impact your score (with lesser impact duing that year). If you have too many, your score might be too low for the issuer and you get denied because of that (and the reason might state that inqs impacted your score, leading to the decline).

And sometimes, your application will be manually reviewed, and then anything on the CR is fair game, so SOME banks, particularly the conservative credit unions such as PenFed, WILL have concerns about apps up to two years old.

Generalizing this YMMV experience, a lot of inqs 3 months or less will raise concerns with all issuers ("Is this person desperate for credit for some bad reason?"). This doesn't mean all will decline, just it raises a flag. Those 6 months or more will concern fewer. And those a year or more out will count only on manual review by the most conservative.

Re: The devastating inquiry

bigblue7722 — Mon, 19 May 2014 11:58:26 GMT

Yes they stay on your report for two years and effect your score for 1 year. Inq are very overrated if u get denied because of Inq u either have like 15+ or there's something else on your report. Underwriters probably care more about how many new accounts u have opened in the past 12 months.

Re: The devastating inquiry

Anonymous — Mon, 19 May 2014 13:15:22 GMT

@bigblue7722 wrote:
Yes they stay on your report for two years and effect your score for 1 year. Inq are very overrated if u get denied because of Inq u either have like 15+ or there's something else on your report. Underwriters probably care more about how many new accounts u have opened in the past 12 months.

^^^ I also feel that that is more of the reasoning behind it.

Re: The devastating inquiry

takeshi74 — Mon, 19 May 2014 13:32:06 GMT

@ecxpa wrote:
So it is my understanding that inquiries affect your credit score for a year but remain on your report for 2 years.. How about with lenders, how long do inquiries impede credit card approvals? Is this a YMMV with different lenders.......

It's a YMMV matter not only with creditors (underwriting criteria can vary) but with credit profiles as well. Thinner profiles won't handle X inquiries as well as thicker profiles.

@bigblue7722 wrote:
Inq are very overrated if u get denied because of Inq u either have like 15+ or there's something else on your report.

...or not enough on the report. It's not that they're "overrated". They just tend to be cited more as denal reasons with thinner profiles and other issues.

Re: The devastating inquiry

Fico2Go — Mon, 19 May 2014 14:53:52 GMT

I had 4 INQs dropped from two years ago. My scores basically stayed the same.

For me I wished the INQs would stay on the report for the purpose of not "looking" like there had been excessive recent inquiries. My goal moving forward is to have at LEAST 1 HP placed on each CR every 3-4 months. Over the course of two years these INQs will spread out evenly, making INQs seem like a normal thing.

Re: The devastating inquiry

Anonymous — Mon, 19 May 2014 14:58:48 GMT

@Fico2Go wrote:
I had 4 INQs dropped from two years ago. My scores basically stayed the same.

For me I wished the INQs would stay on the report for the purpose of not "looking" like there had been excessive recent inquiries. My goal moving forward is to have at LEAST 1 HP placed on each CR every 3-4 months. Over the course of two years these INQs will spread out evenly, making INQs seem like a normal thing.

I don't think that really means much! Sounds like your goal is for issuers to recognize "1 INQ per CR per quarter is normal for Fico2Go" I doubt if anyone does that type of analysis, much more "How does the number of inquiries on this report compare to our acceptable value requirements"

Re: The devastating inquiry

Fico2Go — Mon, 19 May 2014 15:10:19 GMT

@Anonymous wrote:
@Fico2Go wrote:
I had 4 INQs dropped from two years ago. My scores basically stayed the same.

For me I wished the INQs would stay on the report for the purpose of not "looking" like there had been excessive recent inquiries. My goal moving forward is to have at LEAST 1 HP placed on each CR every 3-4 months. Over the course of two years these INQs will spread out evenly, making INQs seem like a normal thing.

I don't think that really means much! Sounds like your goal is for issuers to recognize "1 INQ per CR per quarter is normal for Fico2Go" I doubt if anyone does that type of analysis, much more "How does the number of inquiries on this report compare to our acceptable value requirements"

Acceptable value requirements is qualitative data.

Is it based on # inqs per time period?

ratio of inqs compared to last quarter?

ratio of inqs compared the year prior?

For me I tend to think it's based on inquiries based on pattern of established behavior.

Re: The devastating inquiry

Involver — Mon, 19 May 2014 15:30:41 GMT

INQs are generally just an ancillary reason for denial.

Of course there are exceptions (FNBO, US Bank).

Re: The devastating inquiry

Anonymous — Mon, 19 May 2014 15:34:12 GMT

@Fico2Go wrote:
@Anonymous wrote:
@Fico2Go wrote:
I had 4 INQs dropped from two years ago. My scores basically stayed the same.

For me I wished the INQs would stay on the report for the purpose of not "looking" like there had been excessive recent inquiries. My goal moving forward is to have at LEAST 1 HP placed on each CR every 3-4 months. Over the course of two years these INQs will spread out evenly, making INQs seem like a normal thing.

I don't think that really means much! Sounds like your goal is for issuers to recognize "1 INQ per CR per quarter is normal for Fico2Go" I doubt if anyone does that type of analysis, much more "How does the number of inquiries on this report compare to our acceptable value requirements"

Acceptable value requirements is qualitative data.

Is it based on # inqs per time period?
ratio of inqs compared to last quarter?
ratio of inqs compared the year prior?

For me I tend to think it's based on inquiries based on pattern of established behavior.

I am nearly certain that it is based on absolute numbers relative to other info on the report (such as payment history etc), not compared to the individuals past behaviour. That just wouldn't be statistically predictive enough for an issuer, that needs to have large bundled samples to predict risk of default etc. Yes, in an ideal world, the fact that you have had 200 INQ pers quarter and have never defaulted, SHOULD mean that I needn't be too concerned about your 200 this quarter, but again, I seriously doubt that the algorithms would look into an individual's history of apping to change outcomes.

But, yes, maybe I am wrong.

Re: The devastating inquiry

ecxpa — Mon, 19 May 2014 16:08:29 GMT

@Involver wrote:
INQs are generally just an ancillary reason for denial.

Of course there are exceptions (FNBO, US Bank).

Agree +!0! I guess if they follow a strict algorithm then X number of inquiries will stop you every time. So why does my credit grow!!!!!. Despite tons of inq I have managed to surpass the 100K mark in the past year of rebuilding. Every recon I have done related to inquiries this year most successful except for Citi and Amex.

Re: The devastating inquiry

Anonymous — Mon, 19 May 2014 18:35:05 GMT

it honestly depends on your file, and also the lender's policies.

Inquiries made within the past 3-6 months have the biggest impact on your CR. Some lenders however, may also review all inquiries that are on file, regardless of whether they are 1 month, or 23 months old. If you have a derog or something that you are not exactly proud of on your CR, then lenders are most likely going to review inquiries over a longer period of time.