So how many points does a hard inquiry take away from your FICO score? And how long will they stay on your report or affect your FICO Score?

So how many points does a hard inquiry take away from your FICO score? And how long will they stay on your report or affect your FICO Score?
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#1

Okay so I opened a credit card account say six months ago. Around September my credit score was 720 or so with Transunion. I applied for about 5 more credit cards in a 3 months period but didn’t know because of history length I was going to be denied credit. I thought that score was the only thing that matter and I wanted to open credit card accounts to boost up my score but instead now I have my Transunion fell to 598 .


Too many new accounts in a short period
#2

Happy New Year!

First, I think it is important to look at what makes up a credit score:

35% Payment History: Simply making sure you make your payments are on time each month.

30% Utilization: Your credit balances compared to your limits. Try to keep this under 30%.

15% Length of Credit History: As an average amongst all accounts.

10% Inquiries: Limit the amount of times you apply for new credit to a minimum.

10% Types of Debt: Managing different types of debt is a great way to build a good credit score and show responsibility.

As you can see inquiries make up 10% of your credit score. Unfortunately, there are too many factors to determine how many points you may lose due to an inquiry. However, inquiries only affect the credit score for the first year and fall off after the 2nd year so the affect on your credit is short lived.

Overall, there could be a number of factors that caused your score to go down as much as it did. Inquiries could be one of them. However, I am somewhat skeptical that your score would go down that much simply due to having 5 or 6 inquiries on your credit report. When you opened the new credit card it likely lowered the average age of your other debts. Also, you will want to look at what kind of balance you are carrying on the account as well compared to the limit you have.

Hope this helps!


#3

From FICO: “The impact from applying for credit will vary from person to person
based on their unique credit histories. In general, credit inquiries
have a small impact on one’s FICO Scores. For most people, one
additional credit inquiry will take less than five points off their FICO
Scores. For perspective, the full range for FICO Scores is 300-850.
Inquiries can have a greater impact if you have few accounts or a short
credit history. Large numbers of inquiries also mean greater risk. Much more important
factors for your score are how timely you pay your bills and your
overall debt burden as indicated on your credit report. Inquiries remain on your credit report for two years, although FICO
scores only consider inquiries from the last 12 months. FICO scores do a
good job of distinguishing between a search for many new credit
accounts and rate shopping for one new account.” 

Each hard inquiry only hits the score a few points, so given the scores you mention there must be another factor. If you have not already pulled your full reports to see who and what is reporting, I would do so at www.annualcreditreport.com.

It would be important to note if you are comparing apples to apples.  As you can see here, the “free score” sites use various score types, none of which are FICO.


#4

From FICO: “The impact from applying for credit will vary from person to person
based on their unique credit histories. In general, credit inquiries
have a small impact on one’s FICO Scores. For most people, one
additional credit inquiry will take less than five points off their FICO
Scores. For perspective, the full range for FICO Scores is 300-850.
Inquiries can have a greater impact if you have few accounts or a short
credit history. Large numbers of inquiries also mean greater risk. Much more important
factors for your score are how timely you pay your bills and your
overall debt burden as indicated on your credit report. Inquiries remain on your credit report for two years, although FICO
scores only consider inquiries from the last 12 months. FICO scores do a
good job of distinguishing between a search for many new credit
accounts and rate shopping for one new account.” 


Each hard
inquiry only hits the score a few points, so given the scores you
mention there must be another factor. If you have not already pulled
your full reports to see who and what is reporting, I would do so at www.annualcreditreport.com.

It would be important to note if you are comparing apples to apples.  As you can see here, the “free score” sites use various score types, none of which are FICO.

#5

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