Too Many Inquiries Last 12 Months

too many inquiries last 12 months, credit report, credit score, credit repair, credit building, credit obtaining

Researches have shown that opening several credit accounts in a short period of time represent greater risk, especially for people who do not have a long established credit history.

Just how many is too many?
There’s no exact cutoff-point, and the number varies for consumers with different credit profiles. As people change their credit habits – this number changes as well to reflect the reality.

For people with similar credit profile to yours, Fico formula came up with a MAXIMUM number of credit inquiries that’s considered tolerable:

• If you have less inquiries, you may expect minimal impact to your credit score (few points).
• If you exceed this maximum tolerable number of inquiries, your credit score will take a serious hit. Additionally, the creditor will most likely reject your application because you pose a risk to him.

Once again, it’s important to understand that for every different credit profile, Fico score formula comes up with a different number. Thus, each consumer has a different MAXIMUM number of credit inquiries that’s considered acceptable.

What if I have to shop around for rates?
Fair Isaac (the company that created Fico) recognizes the importance of rate shopping, and changed Fico score formula to accommodate rate shopping without impacting your score.

Specifically, the following exceptions are allowed when you shop for rates:

• Fico ignores any inquiries for mortgage, auto and student loan applications made in the 30 days prior to scoring. Thus, your score is not impacted while you’re in the process.
• After the 30 days have passed – multiple inquiries made within a period of 45 days are considered as a single hard inquiry. Thus, no matter how many creditors you’ve authorized to access your credit information – it will have a negligible effect on your score!