Multiple Inquiries Counted as one?

[codesingh]

Hello All,

I read this on creditsesame.com: "Multiple inquiries for mortgage or auto loans within 45 days are counted as only one inquiry"

Is that right?

Thanks,

Code

[llecs]

I cannot speak to CreditSesame's FAKO, but per FICO scoring, auto, mortgage, and student loan inquiries each are lumped together into their own cetegory of inquiry if pulled within a certain time frame. That time frame ranges anywhere from 14 to 45 days depending on the FICO version and CRA used. Newest versions are up to 45 days. The ones used by most mortgage lenders are 30. So, you can apply 100 times for a mortgage within a 2 week period and FICO will ignore 99 of them. Also, any damage from the inquiry won't be felt until the window expires.

[chan85]

But keep in mind anyone you are applying for will still see however many inqs, even if fico scores weight it differently.

I did mortgage and auto loan shopping end of 2012- summer of last year and thats where are majority of my credit inqs come from. when I am declined for clis, the reason they give is too many inqs. i cant help but think its because of the like 8 pulls on my credit for the auto loan.  luckily the mortgage was only 2 per cbr, but it still adds up, especially if the creditor pulls multiple reports on you.

[0x47]

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@llecs wrote:

I cannot speak to CreditSesame's FAKO, but per FICO scoring, auto, mortgage, and student loan inquiries each are lumped together into their own cetegory of inquiry if pulled within a certain time frame. That time frame ranges anywhere from 14 to 45 days depending on the FICO version and CRA used. Newest versions are up to 45 days. The ones used by most mortgage lenders are 30. So, you can apply 100 times for a mortgage within a 2 week period and FICO will ignore 99 of them. Also, any damage from the inquiry won't be felt until the window expires.

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Just a random thought here but aren't credit reports usually pulled at pre-qualification and immediately prior to closing?  Unless of course you manage to get a home purchase offer accepted and closed within 30 days of when you pre-qualified, it seems like you would lose a few FICO points by the time the second report is pulled (which conveniently makes it easier for the bank to charge a higher interest rate).

[thom02099]

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@0x47 wrote:

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@llecs wrote:

I cannot speak to CreditSesame's FAKO, but per FICO scoring, auto, mortgage, and student loan inquiries each are lumped together into their own cetegory of inquiry if pulled within a certain time frame. That time frame ranges anywhere from 14 to 45 days depending on the FICO version and CRA used. Newest versions are up to 45 days. The ones used by most mortgage lenders are 30. So, you can apply 100 times for a mortgage within a 2 week period and FICO will ignore 99 of them. Also, any damage from the inquiry won't be felt until the window expires.

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Just a random thought here but aren't credit reports usually pulled at pre-qualification and immediately prior to closing?  Unless of course you manage to get a home purchase offer accepted and closed within 30 days of when you pre-qualified, it seems like you would lose a few FICO points by the time the second report is pulled (which conveniently makes it easier for the bank to charge a higher interest rate).

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If you lock in a rate, they can't change the rate once the lock is in place, unless you, the consumer does something foolish.  The 2nd pull is actually to keep you (meaning the plural you!) honest, and to make sure a consumer doesn't go crazy and apply for new credit during that time between the first pull and approval and the 2nd pull/closing.  They are basically looking to see that the information is essentially the same, perhaps with a few lower balances, if you've made payments within that time period.  If there IS a substantial change in the report, then that becomes a game changer. 

That's one of the reasons that advice is frequently given here to do ABSOLUTELY NOTHING that will impact your credit report while you are going through the process of obtaining a mortgage.  Lots of folks are antsy to get new credit cards to furnish their new house.  It's always best to wait for ANY change in your credit status until you've closed on the loan, the mortgage has funded and you've got keys in hand. 

[llecs]

Ditto. Also not all mortgage lenders will pull a 2nd time. I signed mortgage docs agreeing that mine would but they didn't pull any hard or soft inquiries leading up to closing despite being nearly 2 months between app and close.

[masscredit]

Ok, say your shopping for an auto loan and goto 6 different dealers over the course of a week and they each do a hard pull. Will your CR show those 6 inquiries but they won't hurt your score as much?

I was car shopping last Summer. Probably went to 5-6 dealers. I think some tried a few banks. Between than and applying for some credit cards, I have 16 inquiries. To me, it seems like they are all weighing on my score because they are shown. I will go from 16 to 0 if I don't app until Sept. 4 months left!

[thom02099]

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@masscredit wrote:
Ok, say your shopping for an auto loan and goto 6 different dealers over the course of a week and they each do a hard pull. Will your CR show those 6 inquiries but they won't hurt your score as much?

I was car shopping last Summer. Probably went to 5-6 dealers. I think some tried a few banks. Between than and applying for some credit cards, I have 16 inquiries. To me, it seems like they are all weighing on my score because they are shown. I will go from 16 to 0 if I don't app until Sept. 4 months left!

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For the purpose of SCORING, they will count as one inquiry.  FICO's formula will count it as one.  It will, however, SHOW as multiple inquiries on any report.  Where this all becomes a bit tricky is when there is a manual review of the credit report.  A simple explanation of car shopping should resolve any issues from a lender doing the manual review.