What goes into "seeking credit" reason code?

[Anonymous]

Forgot to add something important:

From FICO: https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

"Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. "

It's very likely that 6 or more inquiries will change the weighting on several factors.

[Anonymous]

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@AndySoCal wrote:

@Anonymous 

@Anonymous 

The seeking credit does not have anything to do with consumers pulling their own credit report. The comment has to do with consumers having a lender pull their credit report for a credit card, auto loan etc.  The basic premise lenders use is a consumer will apply for only the credi they need. So when a lender sees numerous inquires the question that might come to mind is why?

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@AndySoCal out of curiosity who said anything about a consumer pulling their own report? We're talking about a seeking credit reason code disappearing and inquiries, hard inquiries. 

[Anonymous]

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@Anonymous wrote:

It’s a theory, could be. I just don’t understand why the codes not still there, considering he has inquiries; all it takes is 1 to get that code.

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Well, 2 points.  One, EX obviously has an issue.  The code is still "there" of course for SJ, as [scoreable] inquiries are still adversely impacting his score.  The problem is that for whatever reason EX seems to pick and choose when it/they are displayed for whatever reason.  The fact that he can go from 4 to 3 to 2 (or whatever) negative reason codes, to me, is bogus.  Two, and less important, as you know lesser scoring impact codes can go away or be replaced with more important ones.  If we allow the thought to exist that an inquiry / 6mo threshold may exist, if he crossed that threshold the reason code could go away.  I don't think this is the case however and tend to side with the EX issues argument.

[Anonymous]

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@Anonymous wrote:

 If we allow the thought to exist that an inquiry / 6mo threshold may exist, if he crossed that threshold the reason code could go away.  I don't think this is the case however and tend to side with the EX issues argument.

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He went from 11 to 10 inquiries, though, and as I posted earlier, FICO says people with 6 or more inquiries are 8 times more likely to experience bankruptcy.

Something that "statistically significant" (FICOs words) seems more than likely to have a much different weighting for SouthJamaica's profile.

I have a 5% threshold on my scorecard that has consistently (8 times now) caused point changes at EQ/TU/EX of 1 to 3 points. This seems unique to my young credit profile. My utilization is obviously being look at differently.

That said....yeah, EX has been throwing some really strange reason codes lately for several people. I'm getting 'Accounts with Balances' and 'No recent revolving usage' at the same time on EX 2. With a Citi Costco Visa reporting $1,234! That's definitely not a store/charge card.

[Anonymous]

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@Anonymous wrote:

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He went from 11 to 10 inquiries, though, and as I posted earlier, FICO says people with 6 or more inquiries are 8 times more likely to experience bankruptcy.

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Right, but there could be multiple thresholds.  I mean, there's multiple thresholds for plenty of other Fico scoring factors... utilization, age of accounts, etc. so it wouldn't be out of the question.  I don't actually believe one to exist at 10 or 11 inquiries, just playing devils advocate since no one knows for sure and as you said file/score card could play a role.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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He went from 11 to 10 inquiries, though, and as I posted earlier, FICO says people with 6 or more inquiries are 8 times more likely to experience bankruptcy.

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Right, but there could be multiple thresholds.  I mean, there's multiple thresholds for plenty of other Fico scoring factors... utilization, age of accounts, etc. so it wouldn't be out of the question.  I don't actually believe one to exist at 10 or 11 inquiries, just playing devils advocate since no one knows for sure and as you said file/score card could play a role.

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I think you're right about the multiple thresholds for this, based on an answer in the recent AMA:

Question: "What is the exact number of inquiries that FICO STOPS counting them into your current score? 12? 20? 80? skies the limit?"

Answer (Tom Quinn, VP FICO Scores): "There is no single “max” number of inquiries where additional inquiries have no impact. It differs across the multiple scorecards in the scoring system."

[SouthJamaica]

Well a number of good minds have spent brain cells on my 2 inexplicable EX FICO 8 reason code changes and point gain on experian.com, including @Anonymous @Anonymous and @Anonymous and offered possible alternate, if improbable, explanations.

As it turns out the winning theory is the least exciting: "issues" with Experian.

I'm sad, only because it's a less exciting theory.

Today the positive reason code about installment loan payoff fell off, the "seeking credit" negative reason code came back, and the quizzical 7 point gain was taken back.

Oh well, easy come, easy go.

[Anonymous]

Sounds about right.

[SouthJamaica]

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@Anonymous wrote:

Sounds about right.

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Indeed it does.

[Anonymous]

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@SouthJamaica wrote:

Well a number of good minds have spent brain cells on my 2 inexplicable EX FICO 8 reason code changes and point gain on experian.com, including @Anonymous @Anonymous and @Anonymous and offered possible alternate, if improbable, explanations.

As it turns out the winning theory is the least exciting: "issues" with Experian.

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This is my fallback theory. It's based on NASA research and assorted scientific principles.

Don't laugh.