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How Long Inquiries Really Count in FICO Calculations

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Valued Member

Re: How Long Inquiries Really Count in FICO Calculations

Actually thanks for saying that BBS because I was thinking since it didn't go into the score, it wouldn't be impactful to lenders' decisions. But you sparked a memory of me reading where someone was turned down for something bc of a lot of inquiries even though their score was good. I don't remember all the details & there was some speculation as to whether that was the actual reason. But, nevertheless, it took your comment for me to cement into my brain that inquiries *do* still potentially matter to lenders even if they are no longer contributing to the score.

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Message 11 of 13
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Super Contributor

Re: How Long Inquiries Really Count in FICO Calculations


@HomeBuyerSpring2021 wrote:

Actually thanks for saying that BBS because I was thinking since it didn't go into the score, it wouldn't be impactful to lenders' decisions. But you sparked a memory of me reading where someone was turned down for something bc of a lot of inquiries even though their score was good. I don't remember all the details & there was some speculation as to whether that was the actual reason. But, nevertheless, it took your comment for me to cement into my brain that inquiries *do* still potentially matter to lenders even if they are no longer contributing to the score.


Put that into the proper context, however: there are people here who have sixty or more inquiries on their reports.  As in 6-0.... on a single bureau.

 

You, by way of contrast, have zero or one.  The only way inquiries will have an impact on you is (a) by the effect it has on your score or (b) if the number of inquiries on a single bureau rose to at least a dozen.

 

What some CC issuers and lenders do use much more often (as a supplement to the score) is to look at the number of accounts that were opened in the last __ days.  (Last 90 days, Last 180 days, Last 2 years).  The number of accounts opened is a very different thing from number of inquiries.  Lenders know that inquiries can result from just ordinary behavior (getting a new cell phone, or an internet connection, or a cable TV package... etc.).  And thus they are less likely to freak out simply because they see inquiries -- the number of new accounts is a better metric.

Message 12 of 13
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Senior Contributor

Re: How Long Inquiries Really Count in FICO Calculations

On the other hand ... banks also may look at supplimental scores that don't relate to Fico as well. For example, Chexsystems does consider inquiries more harshly in their score and some banks have denied opening of new checking accounts for applicants due to a low Chexsystem score - eveen thoug they had a Fico score over 800. Recent and/or frequent address changes also can have a large negative impact on CS score. The below partial table relates to Chexsystems.

 

Chexsystem table.jpg

 

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
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