Inquiries

[Anonymous]

I have bought 2 motorcycles owning one at a time. 3 trucks owning one at a time.

The whole story, I bought one Harley, and had a 6cyl. Dodge truck, had so much fun on the Harley, I bought a 09 Heritage softail. At that time, I needed a bigger truck to haul the motorcycle trailer I bought, so I got a Chevy 2500HD with later wanting to pull a toy hauler. The Chevy will not haul the hauler I wanted, so I bought a ford f-250 diesel.

Now here the deal 5 credit runs in 2.5 years and I have 17 inquiries and each credit company see’s them as one credit pull.  When and how can we stop this?

Each buying company shops you to death right off the bat without a denial from anyone, and their comment is trying to get you the best rate!!

The result is denial for too many inquiries!

Message Edited by dp01 on 11-09-2009 10:24 PM

[llecs]

Welcome to the forums!

Credit inquiries remain on your CR for 2 years. FICO only reads these inquiries for the first year, and ignore them thereafter. Lenders and FICO understand that you are looking for the best rate. The FICO formula will lump all automobile inquiries and count them as one single inquiry if pulled within a 14-45 day period, depending on the CR used and the version of FICO formula used. So, if you went to the dealer this week to get another vehicle, and applied via 50 different lenders to get the best rate, FICO will only ding you for one of those inquiries and ignore the rest.

If I was a lender, I'd worry more about the DTI if these loans haven't been paid off yet. Lenders typically don't care about inquiries reporting beyond one year, but pay special close attention to inquiries pulled within the past 6 or so months.

[Anonymous]

I think hard inqs shouldn't count against your credit score unless a new credit account is opened.  Your credit score is supposed to indicate your risk of default, right?  I had a hard INQ when I opened a CU checking account.  How did my credit risk change? How was I 'shopping for credit'?

And inqs for auto loans or mortgages get lumped together (lenders realize you aren't going to get multiple mortgages or car loans... usually) within a certain time frame.  But what if you decided not to get the loan?  Why should your score change at all?

Maybe even a hard INQ from applying for a credit card shouldn't count... what if you don't get approved?  If not approved, has your credit risk changed? Ok, you were shopping for credit, but you don't have any new accounts to show for it.  Why were you denied? High UTIL?  That's already factored in.  Lates/BK/CO/Judgments?  Factored in.  General credit worthiness?  Isn't that already factored in?

And even the score points rules (as far as we can determine) seem wishy washy.... the first in 12 months is 'free', then the next few cost more points, then you max out the points after so many...blah blah blah.  Lame!

[Anonymous]

After talking it over with friends, I can see some value in a hard inquiry affecting your credit score after all...

Since inquiries are posted right away when your credit is pulled, lenders can be assured that the number of inquiries is up-to-date (so if you applied for 10 credit cards all in the same day, they would see that in your score), and so maybe each inq should affect your score...temporarily.

But again, if you never open the credit account, then your risk hasn't really changed, so maybe inqs should only count for a month or two... not a full year.

Maybe they could put this rule in Fico '10...

[Anonymous]

Yep, I think the inquiry itself has proven to be a risk factor, probably because it's the first sign someone is looking for new, additional credit (whether they receive it or not).  FICO's just a formula to predict risk based on historical data.  So, blame the fools who app'd and faultered and created this ding in FICO through their behavior!  It has all of us watching our inquiries like hawks.

What info do you get when you pull your credit reports at myfico.com?  Or, if you really want to know how much the inquiries are affecting you, pull at myfico.com/12.

And, last of all, have you considered a recon if you received a denial for too many inquiries?