Help me understand inqs....

[Anonymous]

First, let me thank you all for the help with utilization.  Creditguy and Thomas_Thumb in particular.

Now on to inquiries.......

I see that 100% of the score is 

Payment history

Utilization

New credit

Age of credit

Mix of credit

I can only imagine that inqs can leave a dark cloud of doubt over the whole composite.

But if one has perfect history and low util....WHO CARES

If you need one more card for whatever reason and it doesn't work out for various reasons

Exp..right card but useless limit or a flat out denial...or put on 30 wait (really???)

 Now one is stuck with inqs and no card but still perfect history and low util......

Vicious circle that I don't understand.

[Anonymous]

Inquiries belong to the New Credit category.  This category is relatively small (10%) compared to Payment History (35%) and Amounts Owed (30%).

Aside from inquiries, the New Credit category also includes factors that measure how many "new" accounts you have (that might mean what percentage of your accounts are new) and how old your most recently opened account is.

http://www.myfico.com/CreditEducation/New-Credit.aspx

A really nice thing about inquiries is that they stop having any scoring impact for the FICO models after they exceed 365 days in age.  The Vantage Score model considers them for a full two years (as could a lender doing a manual review of your report).

If a person is moving toward a major purchase like a home in the next several months, then it makes sense to watch your inquiries carefully.  Because even a few points might mean a lot if a person was on the FICO border of getting a better or best rate.

But if you don't have a really important credit need like that, then inquiries are not a thing to worry too much about.  They don't have much impact, and you can make them all go away (in terms of scoring impact) by just not opening any accounts for a year.

PS added later: 

NRB below makes a good point (below).  If it wasn't clear to you, an inquiry is the act of someone pulling your credit report, because you are trying to open an account with them or otherwise request credit.  The creditor is inquiring into your credit worthiness by pulling your credit report.  So when you get an inquiry, that doesn't mean that you have a corresponding new account.  You might apply for credit and get turned down, for example.  That would result in a hard inquiry but no new account.  It's also possible (though this is more rare) to open a new account but have no hard inquiry associated with it.  (Example: opening a Share Secure loan with Alliant.)

[NRB525]

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@Anonymous wrote:

First, let me thank you all for the help with utilization.  Creditguy and Thomas_Thumb in particular.

Now on to inquiries.......

I see that 100% of the score is 

Payment history

Utilization

New credit

Age of credit

Mix of credit

I can only imagine that inqs can leave a dark cloud of doubt over the whole composite.

But if one has perfect history and low util....WHO CARES

If you need one more card for whatever reason and it doesn't work out for various reasons

Exp..right card but useless limit or a flat out denial...or put on 30 wait (really???)

 Now one is stuck with inqs and no card but still perfect history and low util......

Vicious circle that I don't understand.

---

An INQ is an indication that the person is "seeking new credit". Whether or not it results in a New Account is a separate measure by FICO. The act of asking for the new credit is documented and is a factor in the FICO scoring algorithm.

The addition of an INQ to the file is a separate step from the lender decision to approve or deny the new card being issued. That decision depends on the other factors in the file, and in some cases, the lender can see a large ( a relative term ) number of INQ in the file in the last year or two years, and decide the credit seeker is too high of a risk, or that the number of INQ pushes the applicant over into the Denied column because of the number of INQ.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

First, let me thank you all for the help with utilization.  Creditguy and Thomas_Thumb in particular.

Now on to inquiries.......

I see that 100% of the score is 

Payment history

Utilization

New credit

Age of credit

Mix of credit

I can only imagine that inqs can leave a dark cloud of doubt over the whole composite.

But if one has perfect history and low util....WHO CARES

If you need one more card for whatever reason and it doesn't work out for various reasons

Exp..right card but useless limit or a flat out denial...or put on 30 wait (really???)

 Now one is stuck with inqs and no card but still perfect history and low util......

Vicious circle that I don't understand.

---

An INQ is an indication that the person is "seeking new credit". Whether or not it results in a New Account is a separate measure by FICO. The act of asking for the new credit is documented and is a factor in the FICO scoring algorithm.

The addition of an INQ to the file is a separate step from the lender decision to approve or deny the new card being issued. That decision depends on the other factors in the file, and in some cases, the lender can see a large ( a relative term ) number of INQ in the file in the last year or two years, and decide the credit seeker is too high of a risk, or that the number of INQ pushes the applicant over into the Denied column because of the number of INQ.

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You two are numbers guys...it must drive you nuts not to be able to put exact numbers on this!

It is just inconvenient and hard to grasp for me.

If new credit is 10% ...and inqs are just a portion of new credit.Then if I have 20 new apps ...and I had at a score average of 715 ..when this started

GUESTAMENT...HOW MUCH COULD MY SCORE FALL.?

[Anonymous]

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@Anonymous wrote:

Inquiries belong to the New Credit category.  This category is relatively small (10%) compared to Payment History (35%) and Amounts Owed (30%).

Aside from inquiries, the New Credit category also includes factors that measure how many "new" accounts you have (that might mean what percentage of your accounts are new) and how old your most recently opened account is.

http://www.myfico.com/CreditEducation/New-Credit.aspx

A really nice thing about inquiries is that they stop having any scoring impact for the FICO models after they exceed 365 days in age.  The Vantage Score model considers them for a full two years (as could a lender doing a manual review of your report).

If a person is moving toward a major purchase like a home in the next several months, then it makes sense to watch your inquiries carefully.  Because even a few points might mean a lot if a person was on the FICO border of getting a better or best rate.

But if you don't have a really important credit need like that, then inquiries are not a thing to worry too much about.  They don't have much impact, and you can make them all go away (in terms of scoring impact) by just not opening any accounts for a year.

PS added later: 

NRB below makes a good point (below).  If it wasn't clear to you, an inquiry is the act of someone pulling your credit report, because you are trying to open an account with them or otherwise request credit.  The creditor is inquiring into your credit worthiness by pulling your credit report.  So when you get an inquiry, that doesn't mean that you have a corresponding new account.  You might apply for credit and get turned down, for example.  That would result in a hard inquiry but no new account.  It's also possible (though this is more rare) to open a new account but have no hard inquiry associated with it.  (Example: opening a Share Secure loan with Alliant.)

Ok

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OK...you two are number guys. It must drive you crazy that you can't put exact figures on this...

I am simple and just don't grasp the punishment aspect.

GUESTAMENT

How far can a score fall..?.if is only 10% of the scoring factor ( if that, since it is just a portion of new credit )..I started at about 715 average. Maybe 15 inqs ( Cap1 will be the death of me). 

S

[Anonymous]

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@Anonymous wrote:

Inquiries belong to the New Credit category.  This category is relatively small (10%) compared to Payment History (35%) and Amounts Owed (30%).

Aside from inquiries, the New Credit category also includes factors that measure how many "new" accounts you have (that might mean what percentage of your accounts are new) and how old your most recently opened account is.

http://www.myfico.com/CreditEducation/New-Credit.aspx

A really nice thing about inquiries is that they stop having any scoring impact for the FICO models after they exceed 365 days in age.  The Vantage Score model considers them for a full two years (as could a lender doing a manual review of your report).

If a person is moving toward a major purchase like a home in the next several months, then it makes sense to watch your inquiries carefully.  Because even a few points might mean a lot if a person was on the FICO border of getting a better or best rate.

But if you don't have a really important credit need like that, then inquiries are not a thing to worry too much about.  They don't have much impact, and you can make them all go away (in terms of scoring impact) by just not opening any accounts for a year.

PS added later: 

NRB below makes a good point (below).  If it wasn't clear to you, an inquiry is the act of someone pulling your credit report, because you are trying to open an account with them or otherwise request credit.  The creditor is inquiring into your credit worthiness by pulling your credit report.  So when you get an inquiry, that doesn't mean that you have a corresponding new account.  You might apply for credit and get turned down, for example.  That would result in a hard inquiry but no new account.  It's also possible (though this is more rare) to open a new account but have no hard inquiry associated with it.  (Example: opening a Share Secure loan with Alliant.)

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THANKS

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

First, let me thank you all for the help with utilization.  Creditguy and Thomas_Thumb in particular.

Now on to inquiries.......

I see that 100% of the score is 

Payment history

Utilization

New credit

Age of credit

Mix of credit

I can only imagine that inqs can leave a dark cloud of doubt over the whole composite.

But if one has perfect history and low util....WHO CARES

If you need one more card for whatever reason and it doesn't work out for various reasons

Exp..right card but useless limit or a flat out denial...or put on 30 wait (really???)

 Now one is stuck with inqs and no card but still perfect history and low util......

Vicious circle that I don't understand.

---

An INQ is an indication that the person is "seeking new credit". Whether or not it results in a New Account is a separate measure by FICO. The act of asking for the new credit is documented and is a factor in the FICO scoring algorithm.

The addition of an INQ to the file is a separate step from the lender decision to approve or deny the new card being issued. That decision depends on the other factors in the file, and in some cases, the lender can see a large ( a relative term ) number of INQ in the file in the last year or two years, and decide the credit seeker is too high of a risk, or that the number of INQ pushes the applicant over into the Denied column because of the number of INQ.

---

You two are number guys. This must drive you nuts not to be able to put an equation to this

Very nebulus ,dark science!

[Anonymous]

---

@Anonymous wrote:

Inquiries belong to the New Credit category.  This category is relatively small (10%) compared to Payment History (35%) and Amounts Owed (30%).

Aside from inquiries, the New Credit category also includes factors that measure how many "new" accounts you have (that might mean what percentage of your accounts are new) and how old your most recently opened account is.

http://www.myfico.com/CreditEducation/New-Credit.aspx

A really nice thing about inquiries is that they stop having any scoring impact for the FICO models after they exceed 365 days in age.  The Vantage Score model considers them for a full two years (as could a lender doing a manual review of your report).

If a person is moving toward a major purchase like a home in the next several months, then it makes sense to watch your inquiries carefully.  Because even a few points might mean a lot if a person was on the FICO border of getting a better or best rate.

But if you don't have a really important credit need like that, then inquiries are not a thing to worry too much about.  They don't have much impact, and you can make them all go away (in terms of scoring impact) by just not opening any accounts for a year.

PS added later: 

NRB below makes a good point (below).  If it wasn't clear to you, an inquiry is the act of someone pulling your credit report, because you are trying to open an account with them or otherwise request credit.  The creditor is inquiring into your credit worthiness by pulling your credit report.  So when you get an inquiry, that doesn't mean that you have a corresponding new account.  You might apply for credit and get turned down, for example.  That would result in a hard inquiry but no new account.  It's also possible (though this is more rare) to open a new account but have no hard inquiry associated with it.  (Example: opening a Share Secure loan with Alliant.)

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It must drive you two nuts not to be able to put an equation on this very nebulus ,dark science

[Anonymous]

Thanks for the help

It must be hard for you two number guys not to put this into an equation

This nebulus , dark science !