topic Re: How to Explain Why I have So Many Inquiries? in General Credit Topics

How to Explain Why I have So Many Inquiries?

ddemari — Thu, 25 Jun 2015 15:41:35 GMT

I don't want to come off as stupid here, I have been researching the internet for a while trying to come up with a good or at least reaonable explanation of why I have so many inquries for credit cards on my CR?

The honest answer is I applied for several cards over the past year, about 1/2 of the inquries have resulted in me obtaining new lines of credit and the other 1/2 have been denials.

Although I have obtaind new cards and have a lot of inquries, my credit report is clean and my utilization is around 13%.

I am not looking to rack up debt and I am not hungry for credit, I like the option of having multiple cards for different reasons and I pay them off accordingly.

Would saying that suffice?

Re: How to Explain Why I have So Many Inquiries?

Berk — Thu, 25 Jun 2015 16:14:50 GMT

@ddemari wrote:
I don't want to come off as stupid here, I have been researching the internet for a while trying to come up with a good or at least reaonable explanation of why I have so many inquries for credit cards on my CR?

The honest answer is I applied for several cards over the past year, about 1/2 of the inquries have resulted in me obtaining new lines of credit and the other 1/2 have been denials.

Although I have obtaind new cards and have a lot of inquries, my credit report is clean and my utilization is around 13%.

I am not looking to rack up debt and I am not hungry for credit, I like the option of having multiple cards for different reasons and I pay them off accordingly.

Would saying that suffice?

Then why do you need to offer an explanation? If you aren't going to apply for any more credit then no one but you and the CRA's need to know about your inquires.

Re: How to Explain Why I have So Many Inquiries?

ddemari — Thu, 25 Jun 2015 16:16:12 GMT

I am thinking about asking for a reconsideration and I was denied due because of too many inquries.

Re: How to Explain Why I have So Many Inquiries?

redbeard — Thu, 25 Jun 2015 16:22:21 GMT

How many inquiries are you talking about?
How many in the last 6 months?

Sometimes its worth taking a break from looking for more credit cards.

Dan

Re: How to Explain Why I have So Many Inquiries?

Callandra — Thu, 25 Jun 2015 16:24:06 GMT

Just tell the truth! Honesty is the best policy

Too many inquiries might just be one reason for denial though; depending on the lender, all the new accounts might be a bigger red flag and might want to see you manage them properly for 6-12 months before issuing credit.

Re: How to Explain Why I have So Many Inquiries?

ddemari — Thu, 25 Jun 2015 16:26:55 GMT

Truth, I can understand the red flags. I have 7 inquiries in the last 6 months. Im just going to be honest, I use credit cards as a tool to thicken my file and also benefit from the rewards each card offers me.

Re: How to Explain Why I have So Many Inquiries?

Berk — Thu, 25 Jun 2015 16:41:20 GMT

@ddemari wrote:
Truth, I can understand the red flags. I have 7 inquiries in the last 6 months. Im just going to be honest, I use credit cards as a tool to thicken my file and also benefit from the rewards each card offers me.

Don't we all?

I would just take a break for 6-12 months and try for some CLIs. I am finally to the point where I don't need any more credit to build my file. Now I just enjoy the benefits of good credit, and the rewards offered by the cards I have.

I just recently bought a new travel trailer. When the dealership pulled my report, they all about fell over themselves getting me into the trailer I wanted with the loan I wanted at the rate I wanted. That would not have been possible if I had recently been looking for new credit. Inquiries back to back to back are a big, red flag to lenders. You want your credit to be there when you need it or if you want to have some fun later in life.

Re: How to Explain Why I have So Many Inquiries?

Anonymous — Thu, 25 Jun 2015 23:59:11 GMT

You're in the same situation that I am.

Re: How to Explain Why I have So Many Inquiries?

Anonymous — Fri, 26 Jun 2015 00:46:47 GMT

i had 20 inqiuires on my account and have never been asked

about that

the most i get asked is about my job and income and why i dont keep money in my bank account

Re: How to Explain Why I have So Many Inquiries?

takeshi74 — Fri, 26 Jun 2015 12:35:03 GMT

@ddemari wrote:
Would saying that suffice?

Creditors vary in their underwriting criteria. Even with a given creditor the recon analysts vary. No one explanation will always overcome concern over number of inquiries for every credit profile out there. If number of inquiries are cited for you then there are probably other issues with your credit that you need to address.

@ddemari wrote:
and the other 1/2 have been denials.

If you're not sure where to start with working on your credit then take a look at those denial letters and see if they offer any reasons to address. You can also always look at the standard factors and start working on the biggest slices first.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@ddemari wrote:
Although I have obtaind new cards and have a lot of inquries, my credit report is clean and my utilization is around 13%.

If you have no derogs at all, 100% payment history and reported (not current but the balances and limits on your reports) utilization that low then you probably have too much recent activity for your profile. Creditors are only confortable with a certain amount of credit seeking activity depending on the profile.