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Effect of Inquiries on scores

Established Contributor

Re: Effect of Inquiries on scores

The beggining of this month I got my EX FICO score for the first time of 732 and it only had a Cap1 inquiry. When I applied and got my BCE, the inquiry dropped it to 724. I'm waiting on the BCE to report on my profile. Inquiries really hurt thin profiles.




Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-778,Eq08-765,Tu08-775
Goal Score: Ex08-800,Eq08-800,Tu08-800


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History of my credit
Message 11 of 26
Super Contributor

Re: Effect of Inquiries on scores

Relatively speaking, everything hurts thin profiles.

Message 12 of 26
Valued Contributor

Re: Effect of Inquiries on scores


Subexistence wrote:

The beggining of this month I got my EX FICO score for the first time of 732 and it only had a Cap1 inquiry. When I applied and got my BCE, the inquiry dropped it to 724. I'm waiting on the BCE to report on my profile. Inquiries really hurt thin profiles.


There is still an important distinction that is being missed. That  inquiry really hurt your thin profile.

 

I am going to stress again that algorithms are complex and changes have relative effects causing everything to shift around. 

 

 

Because percentages are liquid; their value changes depending on the contents of the whole, and while each section is always weighted at the same percentage, the density of that percentage can change. 100% of 30 accounts over 20 years is much different than 100% of 2 accounts over 2 years.

 


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Message 13 of 26
Valued Member

Re: Effect of Inquiries on scores

I've also been told it depends on the type of inquiry... Is there any wisdom in this?

 

For example, I recently applied for an auto loan at the dealership. The dealership pulled my report and then blasted it to multiple bank lenders. Experian sent me alerts for 5 separate inquiries, but my score only went down by maybe 5 points.

 

My EX report still shows 5 inquiries, but it seems they only treat it as a single one for scoring purposes.

Message 14 of 26
Regular Contributor

Re: Effect of Inquiries on scores

Guys and gals, apologies if I stated Half information. As one of the poster above noted, I had a thin file and went on shopping spree and parallely applied for business products along with personal credit cards. I was at 730 before the spree. I had racked up ten inquires for personal credit cards, business credit cards, unsecured loan, mortage loan (last one was my partner push). By the time I got the mortagae denial letter, my scores are 630. So, I figured that it will cost 10 points. Since mine is a thin file with just one credit card for last two years, the impact on my profile might have been severe. I stand corrected.
Message 15 of 26
Valued Contributor

Re: Effect of Inquiries on scores


snu wrote:

I've also been told it depends on the type of inquiry... Is there any wisdom in this?

 

For example, I recently applied for an auto loan at the dealership. The dealership pulled my report and then blasted it to multiple bank lenders. Experian sent me alerts for 5 separate inquiries, but my score only went down by maybe 5 points.

 

My EX report still shows 5 inquiries, but it seems they only treat it as a single one for scoring purposes.


Yes, this is true.

 

Please ignore the numerical value assigned to the number of inquiries in terms of sharing, though, it really means little to nothing without your entire profile... which is what I keep trying to reiterate.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Message 16 of 26
Super Contributor

Re: Effect of Inquiries on scores

Thank you very much for all you for your input. There is lot involved in the scoring. Any way I pulled the triggers and it is too late for me to regret. I have 1 old inqury that is 15 months old. Now I have 5 new inquiries on all 3 credit agencies.  I really should not have applied and should have waited as I am still cleaning up my credit report and I expect my scores to go up further more in the next 6 months. In the mean time these are the results.

 

Barclays JetBlue Approved $3k

Toyota Store Card Approved  $1k

Chase Amazon - Declined. Called recon 3 times and they pulled CR 4 times among different agencies.

Capital One Biz Card - Waiting for decision

Barclays AAviator Red - Sent Identity documents.

Blispay - Denined. Waiting for the response

USAA - Declined.

 

What ever new cards I get from above, I'll keep them. It has been a long credit journey. I was completey out 10 years ago and came back roaring with 800+ scores. Did foolishg thing and decided to puruse higher education and my scores tanked to 540. Now I am rebuiling back again and reached 687. I am still cleaning up some of the baddies and my scores should go back up into 700's soon.

 

No more applications thad do a hard inq. I'll wait for 12 more months and try for one of the Chase cards and possibly Amex Credit card.  I just want to carry 2-3 cards with very good credit limits and PIF at the end of the month. No more credit shopping.  No more interest paying though nose. Kids are growing up and soon going to college and it is time for me to start planning for retirement and enjoy the debt free life. Let us hope for the best. Thanks to every on the forum for their help and support/

 

Message 17 of 26
Established Member

Re: Effect of Inquiries on scores

I recall this to me also when I got an auto loan. I think there is some rule that shopping for a particular loan within a set timeframe would not be multiple inquiries but treated as if one (or something along those lines). You have to shop around for auto or a mortgage. It is not fair to consumer to be penalized for this. But it is within a set time though. I don't know if it was like 2-3 days. I'm sure someone on this forum can confirm. As far as credit inquiries...I am use to seeing a score drop 2 pts. 

Message 18 of 26
Valued Member

Re: Effect of Inquiries on scores

I did a cc mass search this past month tryhing to get back in the hopper w/some of my past creditors. I picked up 5 cards, got turned down by two (the ones I wanted) and my scores dropped 4-5 points across all reports.  Not a huge gig to me as I know I can regain those 5pts easily. It does drop quickly but as w/any investment, look long term. 

 

CH13. Filed 2010, Discharged 2014, All fell off APR 2017.
Current Scores (4/30/17): 799 Transunion, 822 Equifax, 792 Experian
Re-stablished with a $500 NFCU secured loan that funded a $500 NFCU secured CC .
Current: NFCU Rewards (20K), NFCU Signature Rewards (20K), NFCU CLOC ($15k),PENFED Travel Rewards AMEX (20k), PENFED Platinum Rewards (20k), BankAmericard Travel Rewards Visa (20K), BankAmericard Alaskan Air Signature (21k), Barclaycard (15K), Discover Card iT (12K)
Message 19 of 26
Community Leader
Super Contributor

Re: Effect of Inquiries on scores

Two folks mention the same issue:


snu wrote:

I've also been told it depends on the type of inquiry... Is there any wisdom in this?

 

For example, I recently applied for an auto loan at the dealership. The dealership pulled my report and then blasted it to multiple bank lenders. Experian sent me alerts for 5 separate inquiries, but my score only went down by maybe 5 points.

 

My EX report still shows 5 inquiries, but it seems they only treat it as a single one for scoring purposes.


 


svergie90 wrote:

I recall this to me also when I got an auto loan. I think there is some rule that shopping for a particular loan within a set timeframe would not be multiple inquiries but treated as if one (or something along those lines). You have to shop around for auto or a mortgage. It is not fair to consumer to be penalized for this. But it is within a set time though. I don't know if it was like 2-3 days. I'm sure someone on this forum can confirm. As far as credit inquiries...I am use to seeing a score drop 2 pts. 


Yes, if you get a bunch of auto inquiries all in the same short time period, they are treated by FICO as if they are one inquiry.  Same for mortgage inquiries.  But one's reports still list all the inquiries individually.

 

The definition of a "short time period" varies according to the model.  The earlier models defined it as 14 days.  Later models gave you 30 days I think.  So the best rule is to be conservative and do all your auto or mortgage shopping in a 13-day period.

 

An even better rule IMO is to be very intentional about rate shopping when you do it.  Discovering after the fact that your report has been pulled by 20 different lenders is not a good thing.  If it's a shock then somehow there was a misfire in communication between you and the person to whom you gave your SSN.

Message 20 of 26