topic Re: 2 Inquiries in past 12 months. Considered "Not Good"?? in Understanding FICO® Scoring

2 Inquiries in past 12 months. Considered "Not Good"??

Anonymous — Fri, 09 May 2008 19:19:06 GMT

I just pulled a new FICO score and one of the items listed is "Amount of New Credit" or something like that. I have 2 inquiries in the past 12 months (which is what it said that the score is based off of) and I got the rating of "Not Good". Both are for the same thing - when I bought my car. Why is only 2 inquiries still considered "Not Good"?

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Anonymous — Fri, 09 May 2008 19:22:25 GMT

How many accounts do you have that were opened in the last 12 months? The "New Credit" category takes both of those factors (inquiries and new accounts) into consideration, not just inquiries.

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Anonymous — Fri, 09 May 2008 19:48:41 GMT

I have 2 accounts that were opened in the last year.

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

MidnightVoice — Fri, 09 May 2008 19:59:50 GMT

FICO seems to like accounts to be over a year old

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Anonymous — Fri, 09 May 2008 21:11:04 GMT

All hard inqs for new credit are bad under current model. If they weren't bad we would not get dinged for points.

Message Edited by ilovepizza on 05-09-2008 05:11 PM

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

RobertEG — Sat, 10 May 2008 07:54:45 GMT

Posting of a hard inq on your CR does NOT necessarity mean that it affects your FICO score.

Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though youre only looking for one loan. To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Scamp — Sat, 10 May 2008 13:32:43 GMT

RobertEG wrote:
Posting of a hard inq on your CR does NOT necessarity mean that it affects your FICO score.
... it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score....

My understanding of such 'shopping processes' and the resulting multiple hard inqs is that they WILL negatively impact your FICO score, at least as an initial drop, but only to the extent that a single inq would, as opposed to multiple dings for multiple inqs over a longer time span.

I agree with another poster above who commented that FICO seems to regard ANY new hard inq negatively and will call even one less than a year old 'Not Good', so don't sweat that commentary, in and of itself, too awfully much.

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Anonymous — Sat, 10 May 2008 13:41:15 GMT

How recent is the newest account?

ee wrote:

I have 2 accounts that were opened in the last year.

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

RobertEG — Sat, 10 May 2008 19:00:51 GMT

Scape, if you dobt about the non-count of shopping inquiries as a ding, just got to the Credit Education tab at the top of this window, and click on the webinar, and hear what FairiIsaac has to say. That should put any controversy to rest.

Message Edited by RobertEG on 05-10-2008 12:00 PM

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

RobertEG — Sat, 10 May 2008 19:18:28 GMT

What i posted on shopping for credit scores, and the impolication was a direct quote from the FICO Credit Education post, and not my opinion, so if you disagree, then.... you have have to deal with Mr Fair Isaac, not me! It is their post. It is their publically stated policy not mine. Case clossed?

Message Edited by RobertEG on 05-10-2008 12:07 PM

Message Edited by RobertEG on 05-10-2008 12:10 PM

Message Edited by RobertEG on 05-10-2008 12:18 PM

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Scamp — Sat, 10 May 2008 19:16:47 GMT

RobertEG wrote:
Scape, if you dobt about the non-count of shopping inquiries as a ding, just got to the Credit Education tab at the top of this window, and click on the webinar, and hear what FairiIsaac has to say.

Message Edited by RobertEG on 05-10-2008 12:00 PM

Thank you, Robert; I've already read about inqs at the Credit Ed. pages.

My bad for not being more clear about the time frame to which I was referring - the multiple inqs don't affect your score DURING the shopping window.

However, per the Credit Education tab (from which you apparently cribbed some of your initial comments - smart way to post efficiently!), post-shopping-window, FICO does take a look back, views those multiple 'shopping' inqs as a single and will ding most - if not all - people for that 'collective' inq.

True - FICO also says that some people may not be dinged at all for a single inq; I'm sure there are circumstances in which this is the case, but speaking generally, most people will see a slight drop from a hard inq.

Edited to add: You added your post stating that you'd quoted Fair Isaac whilst I was typing this, apparently - ergo the crossed comments about you quoting...

Message Edited by scapegrace13 on 05-10-2008 12:16 PM

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

MidnightVoice — Sat, 10 May 2008 19:45:54 GMT

I recently had an inq on EQ with NO resultant new account - score did not change (783)

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

Scamp — Sat, 10 May 2008 20:07:21 GMT

MidnightVoice wrote:
I recently had an inq on EQ with NO resultant new account - score did not change (783)

There you go! One of the exceptions to my generalization - lucky MV!

Re: 2 Inquiries in past 12 months. Considered "Not Good"??

haulingthescoreup — Sat, 10 May 2008 22:02:47 GMT

I didn't get any dings until I hit 2 inqs per account.

What's really strange is that I have 4 inqs on EQ, none with the same lender, all displayed on the myFICO EQ report. But on the negatives screen, it says "looking for credit" and that I have 3 inqs. Baffling, but whatever!