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Posted: Tue Jul 07, 2009 8:49 pm Post subject: Credit went down for an inquiry?

A local lender looked at my credit history. I knew I shouldnt of allowed it, but I didnt think it was a big deal.

A few days later I get one of those equifax emails saying my credit went down 7points for an "inquiry"

WTF!!!

How long does that affect my score? Im cutting it close already, and have fought hard just to bring my credit back from the slumps!

adonis · Posted: Wed Jul 08, 2009 12:17 am Post subject:

Hi Guest,

There are two types of credit inquiries - hard and soft. Soft inquiries do not appear on your credit report but hard inquiries do. Credit inquiries that are made due to an application you made for credit will be considered as hard inquiry and will appear in your credit report.

Credit inquiries will remain on your credit report for 2 years. However, inquires made within the last year are included while your credit score is calculated. The most recent inquiries have the most effect on your score.

elnoralittle · Posted: Wed Jul 08, 2009 5:03 am Post subject:

Adonis is right. I would like to try to explain a little further though.
Credit inquiries for a home purchase with in a 30 day period should not have a huge impact on your score. The credit bureaus see this as rate shopping and is acceptible use.
The thing is, you are applying for credit, thus possibly opening the door to more open and large debt.
If your current credit card company pulls your credit to review your score, say if you have asked for an increased line, this should not effect your score.
Lenders may pull your credit under pre approval reviews, most of lender companies register and it reports back that a mortgage company has made the inquiry , so that should have minimal impact on your score as well.
If you apply for employment and your employer pulls a credit report. Loan officers often have to succom to that request, this should not affect your score.
or if you have ordered one of those free reports through the bureau's...should have minimal impact.
NOW... if you went car shopping...or house shopping...and you apply to several different lenders, although the inquiries will show on your report, it will only count as a single hit against you..which could be that 7 points.
If you go to best buy, sears or walmart, shopping for that nice flat screen you have always dreamed of and all three companies pull your report, this is when it will hit your credit score in the gut. You are shopping for big ticket items instead of using cash.
All the credit calculations come in part from the Fair Isaac reporting system.
Here is a link to try to help you understand more about your Fico. There are 3 pamphlets on this page that may really help you understand your fico, and what impacts you the most...and also one about helping you protect yourself against identity theft.
"myfico.com/crediteducation/brochures.aspx"
I hope I helped.

[Link deactivated as per forum rules. Thanks.]

jk9999 · Joined: 15 Jul 2009 Posts: 111 1.82 Dollars($)

a lender told me that if i am shopping for a loan within 14days, it will just be hit for one time rather than a lot of times. I am not sure if 7points is a big hit ,maybe maybe not.But i believe you can raise that 7point using some techniques in a short time. But I do suggest you shop the loan in a intensive period,say two weeks, so you may be hit just by one inquiry rather than a lot of inquiries. Hope that helps.

Guest

that is true...when shopping for the mortgage it should count as one inquiry, I wouldn't say hit. Those types of inquiries should not have a significant impact on credit.
After the first inquiry, you have a right to a copy of your credit report. I would get the copy and use that for shopping rates.

gmakerley · Posted: Mon Jul 20, 2009 8:54 am Post subject:

i don't know about other lenders, but our office has made it standard practice to provide a copy of a credit report to everyone on whom we inquire. we sit down with and share with our borrowers insights on how to best manage credit to enhance scores. when i say "provide" i also mean to say that there is no charge for us to provide that report. it's something we hope, of course, will translate into a long-term relationship with a potential borrower.

seek out a lender who's willing to provide you a copy, for free.

jk9999 · Joined: 15 Jul 2009 Posts: 111 1.82 Dollars($)

most lenders will provide it for free i guess, who truly want your business.But I came across someone who will charge nominal fee too. Just shop around.

gmakerley · Posted: Mon Jul 20, 2009 10:19 am Post subject:

i have to laugh - not AT you, jk9999 - please don't take offense. but the way you put it "who truly want your business" should describe every lender. if they don't want your business, they shouldn't be in business

willimartha · Joined: 27 Jun 2009 Posts: 57 -0.11 Dollars($)

Afterall lenders are to earn money.

But through negotiation you can resolve your issue.

gmakerley · Posted: Mon Jul 20, 2009 12:20 pm Post subject:

i am baffled at this.

Garysnober · Joined: 17 Mar 2009 Posts: 450 15.29 Dollars($)

Most lenders will provide it for free as this is a cheap investment to earn your trust and your business.

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Credit went down for an inquiry?