As a new member to the Forums, I have noticed signatures with large amounts of inquiries. I've been under the impression that many inquiries is a big no-no when it comes to credit. But it seems that some of these members have what appears to be a pretty solid credit profile. What are some opinions on how many inquiries to have say per year? Also does it matter if the inquiries are from different categories, such as dealerships, banks, auto loan, etc.
Inquiries can cause your FICO scores to drop. Some lenders don't like any recent inquiries (previous 6+ months). Other lenders don't seem to care much, but may offer smaller limits because of "credit seeking behavior".
A lot of us that racked up a significant number of inquiries did so either because we were approved (with some disbelief) for a credit product and figured we'd see if anyone else was willing to offer a credit product as well. Others racked up inquiries because they hoped they could get a credit product they weren't qualified for and refused to take "no" for an answer.
Ideally, you don't want to apply, just to apply; and only apply for credit you need.
Most FICO models count all auto inquiries in a given time as a single inquiry. Same with mortgage inquiries. So its reasonable (in my opinion) to have 5 or 6 inquiries when buying a new car to insure you're getting the best loan possible.
When I applied for our home loan I ran it through 5 different lenders, all came back with different terms (apr, down payment and monthly payments) if I had gone with the first lender that approved me for the loan I needed I would have paid an extra $10k at closing and an extra 2% apr.
A lot of us that racked up a significant number of inquiries did so either because we were approved (with some disbelief) for a credit product and figured we'd see if anyone else was willing to offer a credit product as well. Others racked up inquiries because they hoped they could get a credit product they weren't qualified for and refused to take "no" for an answer.
Ideally, you don't want to apply, just to apply; and only apply for credit you need.
Most FICO models count all auto inquiries in a given time as a single inquiry. Same with mortgage inquiries. So its reasonable (in my opinion) to have 5 or 6 inquiries when buying a new car to insure you're getting the best loan possible.
When I applied for our home loan I ran it through 5 different lenders, all came back with different terms (apr, down payment and monthly payments) if I had gone with the first lender that approved me for the loan I needed I would have paid an extra $10k at closing and an extra 2% apr.
I@Openwater wrote:As a new member to the Forums, I have noticed signatures with large amounts of inquiries. I've been under the impression that many inquiries is a big no-no when it comes to credit. But it seems that some of these members have what appears to be a pretty solid credit profile. What are some opinions on how many inquiries to have say per year? Also does it matter if the inquiries are from different categories, such as dealerships, banks, auto loan, etc.
Welcome to My Fico Forums!
You ask an interesting question. There are different schools of thought about running up hard inquiries on the forum. Some do it while trying to rapidly build new credit or rebuilding. Some do it to collect cards and SUBs. Some know what they are doing and are careful and strategic about it. Others are just running unleashed and careless. Where you draw the line is up to you, to some degree. Thicker files (longer credit histories) can get away with excess inquiries with less negative effect than thinner files.
Yes too many inquiries are bad for your credit score. But not as bad as some other factors like payment history or derogatory remarks like bankruptcies, collections, late payments. Keeping them low is always good management. Inquiries have a minor effect on FICO as part of your “new credit” portion of the calculation.
The bigger danger with too many inquiries is that different banks have different standards about them. You can end up taking additional HPs (hard pull inquiries) and getting card denials due to it. If you keep apping with more banks and getting denied, it can really start a downward spiral. To stop it, you just need to go “to the garden” and stop applying but some don’t know when to stop. Even if you don’t get denials, your approvals may have less desirable terms if you are seen as risky. (Lower SLs or higher APRs than you might receive otherwise).
There are are resources on the forums to help us predict which credit reporting company or companies will be used for application with a particular bank. If you know this, you can better manage all three reports to spread HPs across them and allow them to age. They stay on your report for two years but they lose effect with age and are FICO unscorable after one year.
There is no set number to recommend. It depends on how aggressively you want to credit seek (risk tolerance). How many is too many depends on the lender that reviews it. If you apply for new credit about one time once every 3-6 months, that’s usually a safe pace that will avoid denials due to inquiries, but even that can be too much for some lenders. On the other hand, you’ll read about people getting approved for new cards sometimes with a dozen or more inquiries!
No, it does not matter WHO pulled your credit; an inquiry is an inquiry.
@Remedios wrote:
With younger, thinner files, less is always better.
If you apply for new credit only when you really need it vs. when you just want it, you should have no problems. Most people do not need new card every few months, nor do their income/spending supports it.
MyFico crowd seldom mirrors how the other 99.9% of population behaves, nor is it indicative of what's considered "normal"
Great remarks @Remedios.
I would modify that statement to ...
“LESS is ALWAYS better, but especially with younger thinner files.”
IMO, keeping inquiries low as a rule is prudent. Life happens and Sometimes things change quickly. Inquiries age slowly. I don’t ever want my inquiries to keep me from getting credit short notice on the best possible terms if something changes in my life. I have even found myself shopping for cars or houses with relatively short term forecast, much less wanting to take advantage of in-store financing or a hot new credit card. Not having to “garden” for a goal is the best way to go.
So what is a credit NEED versus a WANT? This could start a whole new thread. Lol. Needs might be to take out more credit to use it for purchases or BT, but it could also be to help raise a credit score to fulfill a long term need by lowering utilzation or to get a better cash back card that will help us financially.
That was a great point about My Fico’ers not being “NORMAL”. Lol 
We are much more active and credit-seeking than the great majority of the population.
@Anonymous wrote:
0-1 -- conservative
2-5 -- motivated to seek new accounts
6-10 -- actively targeting some strategic goal or bonuses
11+ -- a little off the rails but, potentially attaining goals
20+ -- -there's a couple of people around here in this territory and 1 in particular that's over 100 in the past 2 years
I take a more refined approach and snipe cards specifically for particular uses or bonuses based on my inquiry loads per CR. Typically I keep them under 5 at any given time by looking up info on lenders to make an educated decision on who's pulling what report.
HP points after your file has aged really only cost you 1-2 points on your scores. +1
For instance w/ Chase there's a better chance to increase your CL with them by opening a new account vs CLI.
Good advice and observations. I especially like the inquiry range breakdown and that is a pretty accurate summary.
Like @Obscure-Expert, I prefer a systematic and targeted approach with consideration of both the short term and long term moves and consequences. I don’t erratically pursue every SUB I see. I usually pick cards that I plan to keep long term or that serve some other useful purpose beyond the SUB. For example, I did that very CLI strategy with Chase. I have two hotel cards (Marriott and Hyatt) that I really don’t need long term. However, they both had great SUBs and they also helped me reach a very high total credit line with Chase after reallocating some limits. Eventually they will both be closed and I will pad my Chase limits even higher on my CSR, CFU, and/or CF. 
My inquiries now are TU:1, EQ:0, and EX:5. My EX is much higher because Chase pulled it repeatedly on my recent run of new cards with them. I am letting the new cards and inquiries age a bit while I finish my Hyatt SUB. I have been researching the Which Banks Pull Which Bureaus thread to focus new inquiries on my TU and EQ bureaus next more than EX. But I also track my inquiries and know I will lose one (scoreable) EX in Nov and one in Jan. That will help because there are a couple of cards I still want that pull EX. The point is there is a method to my madness and I don’t apply slipshod on the cuff without considering how it fits into an overall longer term strategy.
@Remedios wrote:“It's shiny and metal, I should apply"
I might sound like someone's overly cautious mom when it comes to apps, but that's only because it takes a long time to shed some of that stuff away. There is nothing quite like disqualifying yourself from future running while thinking you're doing great things.
“It's shiny and metal, I should apply"
Wait ... that’s not a good reason? Lol 
Nothing wrong with overly cautious. I am the same after a few decades doing this. Wisdom comes with age, it’s true. At least usually! Lol.
It appalls me when I see 20-somethings in college or right out with a thin or no file thinking they need a dozen cards in year #1 including an AMEX Platinum. Lmao ... totally oblivious of the fact that every card is not targeted or suitable for every consumer, paying annual fees is unnecessary if not even ignorant if you can’t justify them for your situation and spend, and and that there really is no special status from carrying certain cards. And high total credit lines have a purpose but only up to a point. They help with utilization rates and having truly useful credit lines available if you need it, but most people just don’t need 3x annual income or more in credit lines.