topic Re: How many Inquiries are to many? in Rebuilding Your Credit

How many Inquiries are to many?

JShidell — Wed, 27 Aug 2008 08:13:39 GMT

Was wondering how many inquiries are considered to many. Its time for me to start trying to get some new positive tradeline accounts on my reports or my FICO scores will not improve much if I don't. I completely hate inquiries and want to avoid them, it just looks ugly. The sad thing is inquiries are going to happen when applying for credit. So my question is how many inquiries are to many and how badily will they hurt my fico scores? Currently I have a total of 8 Inquiries on EQ, 4 inquiries on TU and 4 inquiries on EX.

I was talking to a co-worker who has been fixing their credit for the past year and he told me the good will out weigh the bad so if you get approved for credit it will out weigh the inquiry. I understand that but if you have tons of inquiries and no new credit then it looks ugly and it will hurt your scores. I'm afraid to even try to apply. He has 83 inquiries on his EX reports (ouch!!!) and I thought 8 was alot, but he has been approved for credit. You basically don't know unless you try.

I'm just trying to find the best approach at obtaining positive tradelines. I currently have a secured Orchard Bank CC, and was approved for CJ but have yet to use it so its not reporting. I bank with Bank of America and plan on obtaining a secured CC from them.

I really don't want to go on a apply spree just to see who will give me credit. I often look at whogavemecredit.com to help me determine my possibilites. But i'm just afraid to try.

Should I just not worry to much about inquiries and try to obtain some type of positive credit? Or should I apply for say 1 or 2 credit accounts and if i'm declinded just don't attempt to apply again for a while?

What are the best practices in trying to gain positive tradelines with poor/average credit scores?

Thanks for your help.

v/r

JShidell

Re: How many Inquiries are to many?

Anonymous — Wed, 27 Aug 2008 13:20:35 GMT

Wow-- 83! While I am not 100% sure I believe that "if you get approved, the good outweighs the bad", I do think some overrate inquiries.

I have a feeling that you friend may have gotten some declines just because of the inquiries, when they would have otherwise been approved.

Inquiries and new credit is 10% of your score.

IMO, you need to look at what your long range goals are and the dates for those goals.

Are you trying to rebuild your credit in order to buy a house? Will it be more than 2 years from now? If so, inquiries aren't that big of a deal as they'll be gone.

I think mortgage lenders don't look at inquiries as serious as CC companies do, just my opinion.

Are you just wanting to add a few more cards to your mix and then left everything age?

Re: How many Inquiries are to many?

JShidell — Wed, 27 Aug 2008 13:38:48 GMT

sidewinder wrote:
Wow-- 83! While I am not 100% sure I believe that "if you get approved, the good outweighs the bad", I do think some overrate inquiries.

I have a feeling that you friend may have gotten some declines just because of the inquiries, when they would have otherwise been approved.

Inquiries and new credit is 10% of your score.

Thanks for the info

IMO, you need to look at what your long range goals are and the dates for those goals.

Are you trying to rebuild your credit in order to buy a house? Yes Will it be more than 2 years from now? No If so, inquiries aren't that big of a deal as they'll be gone.

I think mortgage lenders don't look at inquiries as serious as CC companies do, just my opinion.

Are you just wanting to add a few more cards to your mix and then left everything age?

Yes, I only have one Secured credit card right now with a CL of 200, thats it!!! I heard that lenders like to see atleast 3. I just want the CC to show positive tradelines, I don't necessarily want to even use them.

Re: How many Inquiries are to many?

Anonymous — Wed, 27 Aug 2008 13:47:10 GMT

I am not sure how many lenders like to see. FICO wants to see more than 1. I think for FICO, it's like they are to assess how well you manage your credit, so they want to see you with some credit and managing it. With one low limit card, it is hard to assess risk on how well you manage.

That make sense?

Does your spouse or close family member have any good accounts that you do AU on?

Any of your inquiries due to fall off soon? Turn 1 year old soon?

Do you have all your baddies off?

What area are you in? Target was a TU puller in Missouri.

I wouldn't go on a major app spree. I would carefully research the cards you'd like to apply for. Judge your chances of approval and try to find companies known for pulling your cleanest/less inq reports.

Re: How many Inquiries are to many?

JShidell — Wed, 27 Aug 2008 14:41:48 GMT

sidewinder wrote:
I am not sure how many lenders like to see. FICO wants to see more than 1. I think for FICO, it's like they are to assess how well you manage your credit, so they want to see you with some credit and managing it. With one low limit card, it is hard to assess risk on how well you manage.

That make sense?

That makes sense

Does your spouse or close family member have any good accounts that you do AU on?

I'm 30 years old. My parents have excellent credit but I truely do not want to result in using them for AUs. Anyways FICO 08 is suppose to do away with AUs to my understanding.

Any of your inquiries due to fall off soon? Turn 1 year old soon?

I thought inquiries stay on your reports for 2 years? I'm not sure when they are due to drop, I have to double check that.

Do you have all your baddies off?

I still have quite a few baddies. 8 CO accounts and 4 CA accounts. The majority if not all are due to fall off in 2011. But I have to start someone and I need to establish some type of positive time lines

What area are you in? Target was a TU puller in Missouri.

My home state of record is Texas. I applied online with Target and I got a message saying that my application needs further processing and that I will receive something in the mail within 2 weeks. I'm not sure what that means but i'm going to assume that it was declined, unless they are going to be sending me the basic store Target card not the Target visa.

I wouldn't go on a major app spree. I would carefully research the cards you'd like to apply for. Judge your chances of approval and try to find companies known for pulling your cleanest/less inq reports.

I applied for 3 CCs today. 2 of them were declined and i'm awaiting on the Target letter.

I think i'm done with applying for credit now again, so discouraging. Now I have to wait an see how badily these inquiries will affect my FICO scores.

Re: How many Inquiries are to many?

Anonymous — Wed, 27 Aug 2008 17:02:19 GMT

JShidell wrote:

I'm 30 years old. My parents have excellent credit but I truely do not want to result in using them for AUs. Anyways FICO 08 is suppose to do away with AUs to my understanding.

Nope, AU is going to count. Have a peak over on the Credit in the News forum. Here is one link.

I thought inquiries stay on your reports for 2 years? I'm not sure when they are due to drop, I have to double check that.

Yes, they stay for 2 years. They only count for 1 year.

My home state of record is Texas. I applied online with Target and I got a message saying that my application needs further processing and that I will receive something in the mail within 2 weeks. I'm not sure what that means but i'm going to assume that it was declined, unless they are going to be sending me the basic store Target card not the Target visa.

I was instantly approved online for Target store card. Spouse was given the notice and received the card in the mail within the 2 weeks.

Re: How many Inquiries are to many?

anca21bi — Wed, 27 Aug 2008 20:45:57 GMT

Can I ask, what are your FICO scores?

Re: How many Inquiries are to many?

JShidell — Thu, 28 Aug 2008 04:21:12 GMT

anca21bi wrote:
Can I ask, what are your FICO scores?

Sure,

TU = 623
EQ = 614
EX = 644

See i'm not sure exactly what these online response systems check for. I don't believe they check credit scores but check for key words on your credit reports like deliquent accounts, past due, charge-off, collections, repo, etc, and it basis the decision on those factors, with each company being different.

But I could be wrong, I'm not quite sure how it all works.

v/r
JShidell

Re: How many Inquiries are to many?

Anonymous — Thu, 28 Aug 2008 04:51:40 GMT

Different companies have different requirements. The online 30/60 second approvals have different criteria. It could check for a set score, if you don't meet that score, then check other revolving accounts, check for PR, check for collections, etc.

They each set their own criteria. No manual review involved. All computer generated responses.

JShidell wrote:

anca21bi wrote:

Can I ask, what are your FICO scores?

Sure,

TU = 623

EQ = 614

EX = 644

See i'm not sure exactly what these online response systems check for. I don't believe they check credit scores but check for key words on your credit reports like deliquent accounts, past due, charge-off, collections, repo, etc, and it basis the decision on those factors, with each company being different.

But I could be wrong, I'm not quite sure how it all works.

v/r

JShidell

Re: How many Inquiries are to many?

JShidell — Thu, 28 Aug 2008 05:02:28 GMT

sidewinder wrote:
Different companies have different requirements. The online 30/60 second approvals have different criteria. It could check for a set score, if you don't meet that score, then check other revolving accounts, check for PR, check for collections, etc.

They each set their own criteria. No manual review involved. All computer generated responses

sidewinder,

Thanks for the helpful info. I pretty much figured that each company sets their own criteria's. I wasn't sure if some checked your scores or not.

v/r
JShidell