- Jan 2, 2001
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I've seen many threads here about credit reports and how inquiries do or don't affect credit scores, so I thought the following article in my newspaper today might be of interest. The quotes in it are from the public-affairs manager of Fair Isaac, creators of the FICO credit-scoring model.
Borrowers want to know if inquiries harm credit
Some excerpts:
?...multiple auto or mortgage inquiries in any 14-day period are counted as one inquiry.
? In the newest formula used to calculate FICO scores, that 14-day period has been expanded to any 45-day period...
? The FICO score ignores all mortgage and auto inquiries made in the 30 days before scoring.
? Each "hard" credit inquiry (meaning the consumer has applied for some form of credit) that is counted normally subtracts no more than five points from a person's score. Often, no points are subtracted.
? The formula doesn't count inquiries made by a lender reviewing an account you already have with that lender.
? Inquiries that come from employers are not counted. Nor is it counted when you ask to see your own report or score.
Stuff that might affect your score:
? taking an unusually long time (several months) to shop for a new mortgage or auto loan.
? shopping around in the same year for several different lines of credit not associated with a mortgage or auto loan.
? knowing before beginning to apply for credit - presumably from conversations with creditors - that your credit score barely qualifies you for the desired credit offering.
Borrowers want to know if inquiries harm credit
Some excerpts:
?...multiple auto or mortgage inquiries in any 14-day period are counted as one inquiry.
? In the newest formula used to calculate FICO scores, that 14-day period has been expanded to any 45-day period...
? The FICO score ignores all mortgage and auto inquiries made in the 30 days before scoring.
? Each "hard" credit inquiry (meaning the consumer has applied for some form of credit) that is counted normally subtracts no more than five points from a person's score. Often, no points are subtracted.
? The formula doesn't count inquiries made by a lender reviewing an account you already have with that lender.
? Inquiries that come from employers are not counted. Nor is it counted when you ask to see your own report or score.
Stuff that might affect your score:
? taking an unusually long time (several months) to shop for a new mortgage or auto loan.
? shopping around in the same year for several different lines of credit not associated with a mortgage or auto loan.
? knowing before beginning to apply for credit - presumably from conversations with creditors - that your credit score barely qualifies you for the desired credit offering.
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