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How many Inquiries are Bad amount of inquiries

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Valued Contributor

How many Inquiries are Bad amount of inquiries

I see some places that say under 10, or some say 5/24 but is that 5 for each Bureaus or is that 5 altogether ....some people have 73 inquiries and still get approved for some things so I'm confused on if 10 or more is 'bad' how some with a LARGE amount of inquiries are still getting loans and vehicles etc.....Perhaps they are just with a lower tier I do get that but at what point is it considered starting to get 'bad' or is there a number people should try to stay under to get best top tier deals?!










6 REPLIES 6
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Valued Contributor

Re: How many Inquiries are Bad amount of inquiries

5/24 rule is not related to inquiries.

 

https://thepointsguy.com/guide/ultimate-guide-chase-5-24-rule/

 

Message 2 of 7
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Senior Contributor

Re: How many Inquiries are Bad amount of inquiries


@Girlzilla88 wrote:

I see some places that say under 10, or some say 5/24 but is that 5 for each Bureaus or is that 5 altogether ....some people have 73 inquiries and still get approved for some things so I'm confused on if 10 or more is 'bad' how some with a LARGE amount of inquiries are still getting loans and vehicles etc.....Perhaps they are just with a lower tier I do get that but at what point is it considered starting to get 'bad' or is there a number people should try to stay under to get best top tier deals?!


5/24 is the number of revolving accounts opened (5 in 24 months).

Inquiries don't have a scoring impact after 12m (on FICO8), but are still on your credit report for 24 months.
Honestly, any inquiries are not good.
The more inquiries you have the "worse" it is.

And the reason you see people with a crazy number of inquries still getting approvals, isn't necessarily just about the lender (if by "second tier" you mean subprime), but also about the strength of their profile. It's not JUST inquries or FICO score.   Upon manual review, someone with a thick, aged, clean file can absorb INQuiries a whole lot better than someone who has a dirty profile or a thin and/or young one.

 

When you say "top tier", if you mean prime banks/large lenders or high credit limits - your profile just has to support it (within the confines of underwriting standards by the financial institution you're looking at).    That not only includes your history (how long you've had it, how well you've managed it, and how much credit you have sought), but could also include things like your income and assets (why some more conservative lenders will requiest 4506-Ts or paystubs/etc or banks will require that information for really high limits).    It's honestly all profile dependent (YMMV).

 




F8 EQ: 804 | EX: 794 | TU: 801 | Accounts: 2/6 4/12 8/24
Happy practitioner of AZE9or10or11 | Team Finances > FICO
Message 3 of 7
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Valued Contributor

Re: How many Inquiries are Bad amount of inquiries

Aaaaah ok so that makes sense.       I thought the 5/24 was more so for inquiries but that helps sort a lot of things out then.     Yes I figured the ones with 70+ had maybe 30 years of history or something because there is no way a new account could and still get new approvals and if they did I would be HIGHLY impressed.     










Message 4 of 7
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Community Leader
Mega Contributor

Re: How many Inquiries are Bad amount of inquiries


@Girlzilla88 wrote:

Aaaaah ok so that makes sense.       I thought the 5/24 was more so for inquiries but that helps sort a lot of things out then.     Yes I figured the ones with 70+ had maybe 30 years of history or something because there is no way a new account could and still get new approvals and if they did I would be HIGHLY impressed.     


You're also not considering rate shopping. When you apply for financing at a car dealer they will sometimes shotgun your app to all of their partners. It's not unheard of to get 20+ inquiries in one visit. Some algorithms filter them out during application if they're coded right. Other times, you need to call in to recon and explain why you have 30 inquiries. That's in addition to what was said above about thickness of file. I was approved despite low scores and lots of inquiries because I have a 20 year old file. I'm sure with 20 inquiries I could still get approved by someone if I tried 







Message 5 of 7
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Valued Contributor

Re: How many Inquiries are Bad amount of inquiries

I was considering the 20+ definitely the 70+ to be due to Car or Home shopping for sure since like you said some places do send it to everyone and their grandparents haha.   BUT some people get those hits then a month later get approved for other things or run their credit again for another shot at the car etc and to me it was like....well where is the line?!      But yes the more I think about it I definitely didn't take into History length as much as I should have but more so that I was misunderstood on the 5/24 part haha slipsey!   XD










Message 6 of 7
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Super Contributor

Re: How many Inquiries are Bad amount of inquiries

Inquiries matter relative to a given profile.

 

Someone may have 30-40 inquiries and because they're profile is rock-solid (clean, massively thick, incredibly aged, etc) they are able to get approved for additional credit products no problem, where someone else with a dirty, thin and young file could be seen as incredibly [greater] risk with 3-4 inquiries.

 

So, the answer to the question in conclusion is that it completely depends on the rest of the credit profile.

Message 7 of 7
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