The scoring system allows for unlimited inquiries during any on fifteen day period to count as one. In this way the system allows borrowers to do due dilligence in shopping for credit without being penalized.
Inquiries only account for 10% of your credit score, but inquiries can lower your score enough to put you in a different credit tier that may increase your interest rate or reduce the maximum loan-to-value that you can receive.
"The scoring system allows for unlimited inquiries during any on fifteen day period to count as one. In this way the system allows borrowers to do due dilligence in shopping for credit without being penalized."
My understanding is that the unlimited inquires within the 15 day period is only if it is a mortgage or auto loan inquiry.
The Fair Credit Act allows up to five credit inquiries when refinancing your home before your Fico score drops.
Not all inquiries count toward your FICO score.
When you check your credit report, you may notice that a number of credit inquiries have been made, sometimes from businesses that you donít know. But the only inquiries that count toward your FICO score are the ones that result from your applications for new credit.
* Inquiries that count toward your FICO score.
There is only one type of credit inquiry that counts toward your FICO score. When you apply for a mortgage, auto loan or other credit, you authorize the lender to request a copy of your credit report. These types of inquiries, prompted by your own actions, appear on your credit report and are included in your FICO score.
* Inquiries that donít count toward your FICO score.
Your own credit report requests, credit checks made by businesses to offer you goods or services, or inquiries made by businesses with whom you already have a credit account do not count toward your FICO score. Credit checks by prospective employers also do not count. These types of inquiries may appear on your credit report, but they are not included in your FICO score.
The inquiries must be for the same purpose for them not to count against your credit score. If you apply for a mortgage but then apply for several credit cards and a car loan the inquiries will be treated as separate and probably will adversely affect your credit score.
Credit inquiries have prevented people from receiving loans. Granted the way they now affect your fico score is much better then in years past. However if your currently involved in the loan process do not aquire any more inquiries.
To many inquires that count against toward your Fico can prevent you from refinancing or purchasing a new home
Credit inquiries - Credit inquiries may reduce credit scores due to the association of inquiries to high risk of default. Borrowers that are distressed may contact many lenders to shop around but may in turn be hurting their scores because of multiple inquiries.
Borrower's can avoid hurting credit scores by keeping the mortgage inquiries to within 15-30 days of the first pull. Because the market changes from day to day, borrower's should not shop over a period of months. It would damage credit scores and put them in higher risk lending situations.
Credit inquiries generally only count for 10% of your total credit score. Multiple inquiries from different places in the same line of work is not as bad as getting multiple inquiries for several different types of loans. Do not expect to shop for a car and a mortgage at the same time, because this could drastically hurt your chances of getting either one. If you were to get two or three different mortgage quotes, in a short period of time, then you should be fine.
Credit inquiries not initiated by the person whose credit report is being pulled do not affect the credit score. Credit card companies often pull a credit report prior to soliciting a qualified person to apply for credit card. These type of credit inquiries have no negative impact on the person's credit profile.
Often times a borrower can get pre qualified for a mortgage and be given a Good Faith Estimate when the borrower provides a consumer copy of their credit report that includes scores from each credit bureau.
Lenders will often ask for a letter of explanation for recent credit inquiries.
There is much misinformation regarding inquiries and how they effect your credit score. Many mortgage loan officers tell applicants not to have their credit pulled again as their score will imediately drop X number of points if they do. This is a technique, of course, for the loan officer to keep the applicant from "shopping" with other lenders. Much of the problem lies in the fact that the credit scoring bureaus do not want to give precise information as to how the scoring works. They withhold this information with good cause because they want the scores to be a true evaluation of risk, not something that can be easily manipulated. This much is known. The scoring system understands that consumers "shop" for credit and should not be penalized for trying to find their best situation. An applicant's credit report can be pulled multiple times during any one 15 day period and for scoring purposes it only counts as one inquiry. Please keep this in mind when looking for a mortgage loan and understand that the lender or broker must see your credit report before they can detirmine what loan program is best for your situation or quote your a rate with any accuracy.
Checking one's own credit does not affect your credit score because it is not considered a credit inquiry.
There are two types of credit inquiries. A "soft" inquiry is one not initiated by the person whose credit is being pulled, and this does not affect your credit score. A "hard" inquiry occurs when a person applies for a loan, credit card, etc., and this does affect your credit score. Too many inquiries in a short span of time can have a negative impact on your credit score.