Inquiries.. affect your score for one year or two?

[masscredit]

Was just looking at Credit Karma. It shows 5 inquiries falling off. They are from July of 2011. Do they sit on your report but only affect your score for one year?

[thom02099]

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@masscredit wrote:
Was just looking at Credit Karma. It shows 5 inquiries falling off. They are from July of 2011. Do they sit on your report but only affect your score for one year?

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Inquiries stay on your reports for 2 years.  They factor in to your FICO score for only 1 year, and the impact is less as they age to that 1 year point. 

[bettercreditguy1]

Additionally, inquiries are less than 5% of your Fico Score, so generally speaking, it impacts minimally.

[masscredit]

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@bettercreditguy1 wrote:

Additionally, inquiries are less than 5% of your Fico Score, so generally speaking, it impacts minimally.

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Until that denial letter comes in that lists to many recent inquires. Then the other 95% of your score doesn't matter  

[Shogun]

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@masscredit wrote:

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@bettercreditguy1 wrote:

Additionally, inquiries are less than 5% of your Fico Score, so generally speaking, it impacts minimally.

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Until that denial letter comes in that lists to many recent inquires. Then the other 95% of your score doesn't matter  

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CK scores them for 2 years vs FICO's 1 year.  And yes, when that denial comes in, but then sometimes it's those inquiries and that other 95% together that throws a monkey wrench into the mix.  If you have a few inqs and a high score, then you'll probably get approved.  Throw that same number of inqs with a borderline score and the outcome may become different.

Also, you just can't look at the number of Inqs.  CK scores each individually, where FICO will bunch them into 1.  Say you are car shopping and the finance offer shotguns your app to 12 different lenders.  You will get hit with 12 different Inqs, but this is only one loan,  should you be penalized for all those other Inqs?  NO...

[YahComb]

IME inquiries can have "break points" just like utilization. I saw it when i gained 16 points for going from 4 12 month inquiries, down to 3. Within a few weeks i had apped again, and not surprisingly went down exactly 16 points when i went back to 4 in 12 months. Probably depends a lot on what bucket you're in. 

most of tha fako's and the not quite FAKO vantagescore inquiries count against your score for 2 years.

[Roarmeister]

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@masscredit wrote:
Was just looking at Credit Karma. It shows 5 inquiries falling off. They are from July of 2011. Do they sit on your report but only affect your score for one year?

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Canadian Equifax is a little different although I don't know why - "An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries."  However, I think the penalty to the score is only for the first year.  As per other posts that I have seen, the penalty decreases as the inquiry ages out to one year.  After that they have no direct impact except that the number of inquires may be a decision factor if you are applying for more credit.

[Shogun]

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@Roarmeister wrote:

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@masscredit wrote:
Was just looking at Credit Karma. It shows 5 inquiries falling off. They are from July of 2011. Do they sit on your report but only affect your score for one year?

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Canadian Equifax is a little different although I don't know why - "An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries."  However, I think the penalty to the score is only for the first year.  As per other posts that I have seen, the penalty decreases as the inquiry ages out to one year.  After that they have no direct impact except that the number of inquires may be a decision factor if you are applying for more credit.

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Thank you for the insight on that.  That is information I was unaware of.