topic Re: Does Type of Credit App Dictate How bad FICO Dings Ya? in General Credit Topics

Does Type of Credit App Dictate How bad FICO Dings Ya?

Anonymous — Mon, 02 Nov 2009 23:01:48 GMT

Does a hard inq for a Mortgage app drop your FICO score more then a Auto loan app? Or an auto loan -v- CC, etc....?

I just applied for a personal loan with my CU and was declined due to high DTI, which is BS since I'm self employed, of course my Sch K is going to translate into poverty income earnings.

Anyway...just wondering what to expect as far as FICO drop and, and how long to regain lost points. Thx.

Re: Does Type of Credit App Dictate How bad FICO Dings Ya?

Anonymous — Mon, 02 Nov 2009 23:03:52 GMT

Forgot to ask, how soon will this inq show up on my CR?

Re: Does Type of Credit App Dictate How bad FICO Dings Ya?

DI — Tue, 03 Nov 2009 03:44:26 GMT

@Anonymous wrote:
Forgot to ask, how soon will this inq show up on my CR?

Inquiries shows instantly on your credit reports as you submit credit applications.

Re: Does Type of Credit App Dictate How bad FICO Dings Ya?

llecs — Tue, 03 Nov 2009 03:53:23 GMT

I believe they are all weighted equally. However, unlike CC inquiries and for FICO scoring, car and mortgage inquiries, per CRA, are bunched together and counted as one solitary inquiry if pulled within a finite time period.

I hear you on the DTI. Same happened to me at Penfed. It was my Schedule C that got me. Pay less taxes or have a higher DTI. Ying-yang I guess.

IMO, inquiry damage is overrated. Assuming you had 0 inquiries reporting and no new TLs, then you'd probably see a max of 10 points, with those points gradually returning over the course of the year. At 12 months, the inquiry is removed from scoring. I app'd during the summer w/ a couple of inquiries from 6 months prior and saw no score change. Later saw a drop when those new accounts started reporting.

How soon to see the inquiry: as soon as they pull the report...within a day or so if it hasn't been pulled.

ETA...once again foiled by slow typing.

Message Edited by llecs on 11-02-2009 10:53 PM

Re: Does Type of Credit App Dictate How bad FICO Dings Ya?

Anonymous — Tue, 03 Nov 2009 05:00:38 GMT

I've had 0 inq in the last 12mo, no new TL's either so I guess it'll be minimal then....good to know. FWIW FICO's range 694-709.

llecs-- when you got declined with Penfed did you continue to pursue a loan elsewhere? The thing that irks me is that I have outstanding payment history for a solid 93 months and counting!

Re: Does Type of Credit App Dictate How bad FICO Dings Ya?

llecs — Tue, 03 Nov 2009 05:11:31 GMT

Despite having util just below 20% then, a perfect payment history, and scores into the low 700s, they turned me down for a personal loan and a CC because they said that my credit obligations were too high in relation to my income, or something like that paraphrased from the denial letter. The income they printed was quite a bit less than my actual income. I never ran the math but it looks like they factored it off my AGI from the 1040. I considered consolidating, but balked after the denial. Funny....my ego took a hit and went out and appd for a Discover and an Amex and was approved for both. Those reported along with Penfed's overdraft, and my score plummets over 50 points with the new credit and lower AAoA. Oh well.