Well, 6 points for a hard pull certainly makes more sense. LOL
In my experience, for as long as I can recall, a single pull always has impacted my score by 2 points. Others, whose scores may be impacted more, could be a product of thinner histories with fewer other factors to counterweight the pull or histories whose contents have a substantially different mix of credit types.
Actually opening a new loan generally also initially would tend to have the further negative impact of a loan with a higher utilization rate plus lowering the average age of active tradelines, the extent of which will depend upon the number and duration of other active accounts.
The clear moral of the story is how wildly certain actions can vary in terms of their impact from one person to another (or even between different moments in time for the same person) which underscores the importance of knowing one’s own credit and developing a basic understanding of the “equal and opposite reactions” upon one’s credit almost every action can have.
In my experience, for as long as I can recall, a single pull always has impacted my score by 2 points. Others, whose scores may be impacted more, could be a product of thinner histories with fewer other factors to counterweight the pull or histories whose contents have a substantially different mix of credit types.
Actually opening a new loan generally also initially would tend to have the further negative impact of a loan with a higher utilization rate plus lowering the average age of active tradelines, the extent of which will depend upon the number and duration of other active accounts.
The clear moral of the story is how wildly certain actions can vary in terms of their impact from one person to another (or even between different moments in time for the same person) which underscores the importance of knowing one’s own credit and developing a basic understanding of the “equal and opposite reactions” upon one’s credit almost every action can have.
Starting Score: Lower than it is
Also keep in mind the reason we have FICO is as a quick-read Risk number. As your borrowing decreases, particularly later in life, with good payment history your perceived risk of default decreases, and score marches toward 850 with less and less debt.
But then you are no longer borrowing and have less inclination TO borrow, so the score no longer matters. And in the first place, any FICO score only matters if you are going out into the financial wirld to borrow or rent. Nobody else cares about your FICO except you and the next bank you approach, which at some point becomes no more banks.
Which is why I don’t get concerned about the points involved in a CC HP if that CC is going to reward me with the means to help pay for future travel. The travel I can enjoy. The HP I can’t take with me when I die, it cannot be banked for any value if I do not use it. Same with a refi HP that, over time would save real cash money.
But then you are no longer borrowing and have less inclination TO borrow, so the score no longer matters. And in the first place, any FICO score only matters if you are going out into the financial wirld to borrow or rent. Nobody else cares about your FICO except you and the next bank you approach, which at some point becomes no more banks.
Which is why I don’t get concerned about the points involved in a CC HP if that CC is going to reward me with the means to help pay for future travel. The travel I can enjoy. The HP I can’t take with me when I die, it cannot be banked for any value if I do not use it. Same with a refi HP that, over time would save real cash money.
