topic Re: Inquiries: How long do they hurt? in Understanding FICO® Scoring

Inquiries: How long do they hurt?

Anonymous — Thu, 04 Sep 2008 19:42:48 GMT

Do inquiries hurt for just 12 months, or do they have a longer history?

Thanks!

Re: Inquiries: How long do they hurt?

Anonymous — Thu, 04 Sep 2008 19:49:34 GMT

They stay in your CR for 2 years. But only the last 12 month are considered for your FICO score.

Re: Inquiries: How long do they hurt?

smallfry — Thu, 04 Sep 2008 20:09:51 GMT

@Anonymous wrote:
They stay in your CR for 2 years. But only the last 12 month are considered for your FICO score.

Yep and you can be denied for too many inquiries even the ones that FICO doesn't count.

Re: Inquiries: How long do they hurt?

Anonymous — Fri, 05 Sep 2008 01:26:44 GMT

There is still some debate out there as to whether inquiries hurt the same for 12 months, or whether their effect declines after 3 months down to a much lesser amount by month 12 before having no effect once the 12 month time is reached.

Can anyone specifically state which is the right answer, based on actual knowledge and not speculation?

Re: Inquiries: How long do they hurt?

haulingthescoreup — Fri, 05 Sep 2008 01:47:51 GMT

People can debate all they like, but Barry said that an inq hurts for exactly the same amount for all 12 months, and then not at all.

The fade that we see is if you actually get a new account from the inq. As it starts building positive history, the lost points lessen and eventually your score starts increasing beyond the starting point. But that's from the account, not the underlying inq.

Message Edited by haulingthescoreup on 09-04-2008 06:47 PM

Re: Inquiries: How long do they hurt?

Anonymous — Fri, 05 Sep 2008 19:27:21 GMT

Since this comes from Hauling, one of the most reliable sources there is, that is good enough for me.

Re: Inquiries: How long do they hurt?

valley_man0505 — Fri, 05 Sep 2008 20:07:13 GMT

I have an inquiry from exactly 1 year ago today on EQ and I also have the ScoreWatch service. I will try to watch for an effect. Unfortunately, since it is the beginning of the month, there are a couple other things that should be updated any day now, so I may not be able to tell.

Edited: Oops, guess the original inquiry was on TU not EQ. My attempt to upgrade the card was the inquiry that was put on EQ. Guess I won't be able to tell after all.

Message Edited by valley_man0505 on 09-05-2008 01:07 PM

Re: Inquiries: How long do they hurt?

haulingthescoreup — Fri, 05 Sep 2008 22:57:54 GMT

@Anonymous wrote:

Since this comes from Hauling, one of the most reliable sources there is, that is good enough for me.

Awww... Actually, it comes from Barry. I'm just one of the messengers.

There's something actually kinda nice about having one thing in FICO scoring that is what it is, and stays that way for a year, and then vanishes. Sort of a rock of stability in the continuing riptides of scoring!

Re: Inquiries: How long do they hurt?

Anonymous — Sat, 06 Sep 2008 15:11:57 GMT

Although what actually makes sense is for the inquiries to decline over time. I mean, c'mon, if I app'd for an AMEX card last October and a Chase card last week, AMEX would have either approved or rejected by then and the TL would be on my CR by now.

Therefore, how could you count each of them the same amount?

But, it is what it is.

Re: Inquiries: How long do they hurt?

haulingthescoreup — Sat, 06 Sep 2008 15:25:11 GMT

@Anonymous wrote:

Although what actually makes sense is for the inquiries to decline over time. I mean, c'mon, if I app'd for an AMEX card last October and a Chase card last week, AMEX would have either approved or rejected by then and the TL would be on my CR by now.

Therefore, how could you count each of them the same amount?

But, it is what it is.

I assume that it comes from a sort of yes/no question: have you applied for credit within the last year? The answer is either yes, or no.

Re: Inquiries: How long do they hurt?

Anonymous — Mon, 08 Sep 2008 17:46:45 GMT

Does asking for a CLI from a CCC result in a soft or hard inq?

Re: Inquiries: How long do they hurt?

haulingthescoreup — Mon, 08 Sep 2008 17:48:59 GMT

Depends on the bank. Generally, Chase will, BofA won't unless you've begged too often, AmEx won't, Citi usually does, etc.

Your best best is to search here using the terms cli hard (bank name), or something like that.

Re: Inquiries: How long do they hurt?

Anonymous — Wed, 10 Sep 2008 13:36:52 GMT

US Bank does not make a hard inquiry.

Re: Inquiries: How long do they hurt?

Anonymous — Tue, 23 Sep 2008 17:31:06 GMT

Hard versus soft depends on the lender.

In any event, the impact of inquiries is generally overrated. The exception to this is people with scores up there in the nosebleed section--775 or so or higher. Once your score is very high, even minor negatives like inquiries have an inordinate affect.

Re: Inquiries: How long do they hurt?

Anonymous — Tue, 23 Sep 2008 22:09:19 GMT

I had 5 mortgage companies pull my credit within a two week time period. How bad will that effect my score?

Re: Inquiries: How long do they hurt?

Anonymous — Tue, 23 Sep 2008 22:17:17 GMT

As I understand it...when shopping for a mortgage or a new vehicle, all related inquiries within a two-week period are counted as one single inquiry. The reason for this is that FICO understands "rate shopping" and doesn't hold it against us.

Re: Inquiries: How long do they hurt?

Anonymous — Wed, 24 Sep 2008 05:48:35 GMT

I had talked with a lady last year at Credco and she had told me they have their most impact for the first 6-7 months and then after that it starts to weaken also not geeting another one for awhile would prevent another big drop. Be a loan officer in the mortgage business I've seen allot of horror stories and recommend everyone of my clients that they should really sign up for this site.

Re: Inquiries: How long do they hurt?

Anonymous — Wed, 24 Sep 2008 05:50:19 GMT

Counts as one inquiry within a two week period. The creditors know your shopping. Now applying at 5 car dealerships or 5 different credit card companies and watch your score start to sink.

Re: Inquiries: How long do they hurt?

hdporter — Thu, 25 Sep 2008 17:03:39 GMT

@haulingthescoreup wrote:
People can debate all they like, but Barry said that an inq hurts for exactly the same amount for all 12 months, and then not at all.

The fade that we see is if you actually get a new account from the inq. As it starts building positive history, the lost points lessen and eventually your score starts increasing beyond the starting point. But that's from the account, not the underlying inq.

With ultimate respect for Barry, did he reconcile that statement with the myFICO report explanation when "You've recently been looking for credit" is cited as a negative scoring factor?

"Your FICO score will consider these recent inquiries less as time passes, provided no new inquiries are added."

To me, that reads as a clear statement that inquiry age is a factor (independent of any related accounts that were established).

Re: Inquiries: How long do they hurt?

haulingthescoreup — Thu, 25 Sep 2008 20:29:36 GMT

@hdporter wrote:

@haulingthescoreup wrote:
People can debate all they like, but Barry said that an inq hurts for exactly the same amount for all 12 months, and then not at all.

The fade that we see is if you actually get a new account from the inq. As it starts building positive history, the lost points lessen and eventually your score starts increasing beyond the starting point. But that's from the account, not the underlying inq.
With ultimate respect for Barry, did he reconcile that statement with the myFICO report explanation when "You've recently been looking for credit" is cited as a negative scoring factor?

"Your FICO score will consider these recent inquiries less as time passes, provided no new inquiries are added."

To me, that reads as a clear statement that inquiry age is a factor (independent of any related accounts that were established).

Yes, I've started wondering about that myself. Might be time to go harass him again.