Inquiries: How long do they hurt?

[treski]

Do inquiries hurt for just 12 months, or do they have a longer history?

Thanks!

[Anonymous]

They stay in your CR for 2 years. But only the last 12 month are considered for your FICO score.

[smallfry]

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@Anonymous wrote:
They stay in your CR for 2 years. But only the last 12 month are considered for your FICO score.

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Yep and you can be denied for too many inquiries even the ones that FICO doesn't count.

[Anonymous]

There is still some debate out there as to whether inquiries hurt the same for 12 months, or whether their effect declines after 3 months down to a much lesser amount by month 12 before having no effect once the 12 month time is reached.

Can anyone specifically state which is the right answer, based on actual knowledge and not speculation?

[haulingthescoreup]

People can debate all they like, but Barry said that an inq hurts for exactly the same amount for all 12 months, and then not at all.

The fade that we see is if you actually get a new account from the inq. As it starts building positive history, the lost points lessen and eventually your score starts increasing beyond the starting point. But that's from the account, not the underlying inq.

Message Edited by haulingthescoreup on 09-04-2008 06:47 PM

[Anonymous]

Since this comes from Hauling, one of the most reliable sources there is, that is good enough for me.

[valley_man0505]

I have an inquiry from exactly 1 year ago today on EQ and I also have the ScoreWatch service.  I will try to watch for an effect.  Unfortunately, since it is the beginning of the month, there are a couple other things that should be updated any day now, so I may not be able to tell.

Edited:  Oops, guess the original inquiry was on TU not EQ.  My attempt to upgrade the card was the inquiry that was put on EQ.  Guess I won't be able to tell after all.

Message Edited by valley_man0505 on 09-05-2008 01:07 PM

[haulingthescoreup]

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@Anonymous wrote:

Since this comes from Hauling, one of the most reliable sources there is, that is good enough for me.

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Awww... Actually, it comes from Barry. I'm just one of the messengers.

There's something actually kinda nice about having one thing in FICO scoring that is what it is, and stays that way for a year, and then vanishes. Sort of a rock of stability in the continuing riptides of scoring!

[Anonymous]

Although what actually makes sense is for the inquiries to decline over time.   I mean, c'mon, if I app'd for an AMEX card last October and a Chase card last week,  AMEX would have either approved or rejected by then and the TL would be on my CR by now.  

Therefore, how could you count each of them the same amount?   

But, it is what it is.

[haulingthescoreup]

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@Anonymous wrote:

Although what actually makes sense is for the inquiries to decline over time. I mean, c'mon, if I app'd for an AMEX card last October and a Chase card last week, AMEX would have either approved or rejected by then and the TL would be on my CR by now.

Therefore, how could you count each of them the same amount?

But, it is what it is.

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I assume that it comes from a sort of yes/no question: have you applied for credit within the last year? The answer is either yes, or no.