INQ POINTS/SCORING

[rom828]

Please pardon another dumb question from me, but still dont quite have a handle on inquiries and scoring.

Hope I can ask this where it makes sense.

Are inquiries for credit you did not receive (declined) worse than inquiries for credit where you did receive it?

Is there  a way another creditor would know you were declined, or do they just assume you were declined  if they see an inquiry from a creditor for whom there is not an open line of credit?

If you apply for new credit, does the creditor actually look to see who you applied to previously, or do they just look to see how many inqs you've had?

And I've seen quite a view differences of opinion as to how many inqs are too many, and have garnered that it may have a different effect dependeng upon score and bucket.

Any thoughts and advices are as always appreciated.

FICOS:  EQ 633   EX 640  TU 654

[Anonymous]

Honey, the only dumb questions are the one's that are not asked.

Are inquiries for credit you did not receive (declined) worse than inquiries for credit where you did receive it? [ No. They count equally. A hard inq, is a hard inq, is a hard inq. ]

Is there a way another creditor would know you were declined, or do they just assume you were declined if they see an inquiry from a creditor for whom there is not an open line of credit? [ No. If they analyze the report carefully, they might be able to figure out you were declined. But it's always a possibility. ]

f you apply for new credit, does the creditor actually look to see who you applied to previously, or do they just look to see how many inqs you've had? [ if they analyze the report, yes and yes. ]

And I've seen quite a view differences of opinion as to how many inqs are too many, and have garnered that it may have a different effect dependeng upon score and bucket. [ Very true! That's why we say so often YMMV from person to person ]

[rom828]

Sylvia, once again, thanks for chiming right in with an answer to my endless stream of questions!!

As you may have guessed from my previous posts regarding my impatient  apping (&  now subsequent declines), I am very anxious about the effect of the 2 inqs on my score. 

I did receive an alert about the first app, but my score did not change.  Havent rec'd any alerts on the 2nd one yet. 

BTW, interesting point on the 2 apps: 

Juniper delined based on 1)deliquencies &  2)level of deliquencies as well as 3) utilization too high. 

Just rec'd Citi decline letter Sat. indicating declined because: "a delinquent credit obligation(s) either paid or unpaid was recorded on your credit bureau report". 

Obviously neither one likes C/Os (I have the Provid which is  paid and the other unpaid Cap1 (researching still on that one reyt to NCO--you've seen & helped me with my posts on those w/incorrect reporting, etc),

but I'm not quite sure if Citi is referring more to the Cap1 C/O which is 'delinquent' in that it's unpaid, or if they are considering the paid  Prov C/O just as heavily.  Sound like they are since they say 'paid' or 'unpaid'.

but I think it's sort of odd that Juniper mentions the utilization (which I know is high but primarily due to the Cap1 C/O being included) and Citi does not, when to my understanding Juniper is not really a prime card.

Either way, doesnt look like I'll have a Citi card, which is what I'd really like, until after 10/09 and/or

06/10 when the C/Os are history.

Message Edited by rom828 on 04-07-2008 11:54 AM

[Anonymous]

rom, sorry to hear of the declines.

Don't get discouraged though. We learn through our mistakes. And that is especially true for me.

Juniper is an odd duck for me, to be sure! I consider it a sub-prime card too.

Citi doesn't like what I call "fatal baddies", which includes charge-offs.

Keep working on your scores, bring those utils down, and you will be rewarded for your efforts. I'm sure of it.

[rom828]

Thanks for the encouragement, Sylvia!

I figured those C/Os were not gonna fly, so:  Repair, repair, repair is my mantra! 

I have to keep reminding myself that I'm way better off than I was this time last year, thanks to all I've learned on this forum.

I am making every effort, (including legal help in the fight with EX and EQ over report errors) to optimize the info ony my reports, either by correcting or deleting inaccuracies, improving utilization, etc.  After I've exhausted all efforts (and it is indeed exhausting!) I will just sit back and let time do its thing!

Patience is not currently one of my virtues, but  I am trying to improve on that as well.  Obsessing........well, that's another matter!!!

[Anonymous]

I think you are in the right mind set.

We just need to work on your patience a lil' more!

[RobertEG]

Maybe the effect of multiple bucket scorecards is also coming into play here when it comes to the effect of new inquiries and/or new accounts.

FICO buckets group consumers into separate categories, each with its own algorithm, in an attempt to predict  how actions taken might  improve longer term risk as compared to others in that bucket.  It is fairly clear that the lower FICO buckets generally include those with low credit history and thin files, or those with prior derogs, such as 30/60/90 lates, collections, backruptcies, public records, etc.  Similarly, higher FICO buckets generally include those with longer histories, no derogs, and low utilization.

So looking at an inquiry for new credit, is seeking new credit more or less the norm and/or predictive of future credit risk for those in the lower or higher buckets?  I would suppose that those in the lower buckets are more apt to seek new credit, either to establish or improve credit rating, than those in the higher brackets, and that such new credit would be much more the norm for lower brackets than for higher brackets.  Ergo, it makes sense to me why new inquiries and accounts would have less of a negative impact on those in lower brackets than on higher FICO achievers.

[rom828]

Think you're right on the money, Robert, as far as the buckets and scoring, especially based on all I've been reading on this forum.

I've seen members mention scores dropping after derogs came off, due to their being placed in a new 'bucket' w/more stringent scoring, so that other 'dings' they might have apparently carry more weight.

And after reading all the posts from members with good to excellent scores going app crazy but not experiencing any real damage, I'm sure it is because of their 'bucket placement'.

The lesson for me has been that I will not try to improve my score with new credit lines at this point, as it would be counterproductive in that it will/could cost me points.

I will get these last derogs resolved, will not create new ones (!) and then try to build some other lines of credit for the future.