Multiple Inquiries Within 7 Days

[Anonymous]

It's my understanding that multiple inquiries within 7 days will only count as one inquiry but what happens 3 months later?  If I financed a car and reached out to 6 lenders that should only count as one inquiry but 3 months later and I'm buying a house does it now count as 6 inquiries?

[Anonymous]

Here's how it works.  First, the thing where several inquiries inside a small time period are treated as one -- this only applies to auto and mortgage loans.  In theory it also applies to people shopping for student loans, but I don't know for sure that the older FICO models have that built in, and the older models matter a lot if you decide you want to buy a home down the loan.

Second, in order for several inquiries to be treated as one, they all have to be coded correctly by each lender.  This does not always happen.  So, for example, you walk into a car dealership and they ask for your social.  Possibly without you fully realizing it, they run 15 inquries on you.  If they were all correctly coded by each of the 15 lenders as being of type AUTO, then yes FICO will treat that as one inquiry.  (All the AUTO inquries made within a very short time frame.)  But what happens if some of those inquiries were (accidentally) not coded as AUTO?  Then they will count as separate inquiries.

But assuming you make them all within the time period you indicated, and assuming they all get coded correctly (auto, mortgage, etc.) then all those inquiries will affect your FICO score as if they were one inquiry.

Furthermore, six months later, FICO will still view all those inquiries as one inquiry (for scoring purposes).  But the inquiries will all be listed separately on your report.  (That was your other question.)

[Anonymous]

---

@Anonymous wrote:

Here's how it works.  First, the thing where several inquiries inside a small time period are treated as one -- this only applies to auto and mortgage loans.  In theory it also applies to people shopping for student loans, but I don't know for sure that the older FICO models have that built in, and the older models matter a lot if you decide you want to buy a home down the loan.

Second, in order for several inquiries to be treated as one, they all have to be coded correctly by each lender.  This does not always happen.  So, for example, you walk into a car dealership and they ask for your social.  Possibly without you fully realizing it, they run 15 inquries on you.  If they were all correctly coded by each of the 15 lenders as being of type AUTO, then yes FICO will treat that as one inquiry.  (All the AUTO inquries made within a very short time frame.)  But what happens if some of those inquiries were (accidentally) not coded as AUTO?  Then they will count as separate inquiries.

But assuming you make them all within the time period you indicated, and assuming they all get coded correctly (auto, mortgage, etc.) then all those inquiries will affect your FICO score as if they were one inquiry.

Furthermore, six months later, FICO will still view all those inquiries as one inquiry (for scoring purposes).  But the inquiries will all be listed separately on your report.  (That was your other question.)

---

Is there a way too know if they are indeed counted as one inquiry? 

[Anonymous]

You can pull your credit reports (Karma should work) and if both EQ and TU are both showing them all coded the same (e.g. AUTO) and if the biggest difference in the dates is 13 days, then they should all count as one.

Aside from that, I don't know of a way to tell what FICO is doing.  Maybe somebody else does here.

Personally my approach is to pull my scores myself (e.g. through myFICO) and then call a number of lenders and tell them I can give them any score they want, and that all I am looking for is a non-binding off-the-record estimate for interest rate (I am always happy to give them info about my income and DTI too)..  That way the shopping period involves zero hard pulls and I don't have to worry about whether they might code things incorrectly.

[Anonymous]

---

@Anonymous wrote:

You can pull your credit reports (Karma should work) and if both EQ and TU are both showing them all coded the same (e.g. AUTO) and if the biggest difference in the dates is 13 days, then they should all count as one.

Aside from that, I don't know of a way to tell what FICO is doing.  Maybe somebody else does here.

Personally my approach is to pull my scores myself (e.g. through myFICO) and then call a number of lenders and tell them I can give them any score they want, and that all I am looking for is a non-binding off-the-record estimate for interest rate (I am always happy to give them info about my income and DTI too)..  That way the shopping period involves zero hard pulls and I don't have to worry about whether they might code things incorrectly.

---

Hey CreditGuyInDixie,

Thanks for the reply.   What you're saying makes perfect sense. As a matter fact, I used this same tactic yesterday and negotiated both a reduction in interest rate on one a line of credit, well as a credit line increase. The offer was good that I had to come out of garden.  They also told me I could make additional changes inside of 60 days and no additional hard pulls necessary. So I to take advantage of that