Why are some lenders inquiry friendly

[ecxpa]

Most who are rebuilding have had or eventually will get a denial for "Too many recent credit inquiries"......the usual rationale is if you are looking for new credit you are desparate and a high risk.  We know this is not true always.  Also some lenders seem to disregard inquiries or at least in my case I have been able to get good CL with lenders including Diner's Club for 10K, NASA 20k, USAA 7k  with tons of inquiries, but have been denied previous apps because of too many inquiries with other lenders including Citi and Comenity bank.  Is the inquiry sensitivity something that changes from time to time or what?

[takeshi74]

Creditors not only vary on that but with other approval criteria as well.  You can't assume all creditors to be identical.

It's not just a matter of creditor but one's credit profile as well.  Those with thin profiles and poor credit are much more likely to see iqnuiries as a denial reason than those with better, more established credit profiles (i.e. person A could see X inquiries as a reason for denial while X inquiries is not an issue for person B).

[nkrishdtt]

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@ecxpa wrote:

Most who are rebuilding have had or eventually will get a denial for "Too many recent credit inquiries"......the usual rationale is if you are looking for new credit you are desparate and a high risk.  We know this is not true always.  Also some lenders seem to disregard inquiries or at least in my case I have been able to get good CL with lenders including Diner's Club for 10K, NASA 20k, USAA 7k  with tons of inquiries, but have been denied previous apps because of too many inquiries with other lenders including Citi and Comenity bank.  Is the inquiry sensitivity something that changes from time to time or what?

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Its all your credit profile....I remember getting denied for Citi in 2009 when i had 3 enq on EX (>8 months old) and they cited too many as one of the reasons. The same company in 2011 approved me for a 14K AA card when i had 8 enq on EX. In the latter case my profile was much more thicker...I believe sometimes the AAoA+Inq combination is the real trigger instead of inq alone.

[AndySoCal]

Inquires to a lender represent the pursuit of new credit.   Depending on your crdit profile and what the recent inquires are/were for will affect the underwriting decision.  For example  let us say a consumer has high balances on their credit cards including one that was recently opened.  Now that same consumer is applying for more credit.  it causes the lender to ask why is the conumser running high balances and why are they asking for more.  In many cases like this it turns out badly for the lender the conusmer has a financial difficulty and ends up filling bankruptcy chapter 7. Now the lender has lost money on the account.  The rule of thumb is apply for the credit you need and not want.  Notice my siggy on how long I have gone with apping. Yes, I could get some higher credit limits but those that I have are sufficent. Keep in mind higher credit limits does not in and of them self increase your score.  The credit limit only comes into scoring equation on credit utilization.