Do regular inquiries hurt my credit score?
Post date: September 9th, 2011Do all regular inquiries (individual or participant) hurt my credit score? I’m looking at my report now and see that some have "permissible purpose" typed next to that specific inquiry. What exactly does lower one’s credit score (example: applying for a credit card, mortgage, loan…etc)…Thanks.
« How can i get low interest rate mortgage loan? Can you even get a mortgage with a low credit rating? »
September 9th, 2011 at 8:19 pm
Inquiries remain on your credit report for two years, although FICO scores only consider inquiries from the last 12 months.
FICO scores have been carefully designed to count only those inquiries that truly impact credit risk such as applying for new accounts or loans. Be careful about opening new accounts that you don’t need. Opening new accounts can
lower your FICO score in the short term. Beware of
discounts or low interest rates being offered to entice
you to open a new charge account that you don’t need.
Other inquiries made on a periodical basis (those accounts you already have) will not affect your FICO score, neither will requesting your credit reports.
CRA’s will ignore numerous new applications for items such as a mortgage or automobile or any other large priced item as long as you do so within 15 days.
For most people, one additional credit inquiry will take less
than five points off their FICO score. However, inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk: 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.
Hope this answers your question.
September 9th, 2011 at 8:19 pm
Only inquiries initiated by you for the purpose of obtaining credit would hurt your score. For example if you applied for an AMEX and they pulled your credit, you’d probably drop a few points. If you already have an AMEX and they pull your credit to increase your limit, that does not hurt your score.
September 9th, 2011 at 8:19 pm
Everytime someone checks (dings) your credit, it in theory lowers your credit score. This is usually only short term (six months or so) though if your not late on any payments.
September 9th, 2011 at 8:19 pm
many people have the misconception about "dings" on your credit score. a "permissible purpose" is the sort of inquiry that is basically ignored by credit agencies. If you go shopping for a car and you go to fifteen dealerships and they all pull your credit, the credit agencies are smart enough to say " oh, hey madam X is car shopping." The actual effect of inquiries to point value of credit score is truly negligible and has always been more hype than necessary.
September 9th, 2011 at 8:19 pm
read this article, http://www.monitorbankrates.com/how-to-build-maintain-and-repair-your-credit