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Sometimes "Too Many Inquiries" means "too many inquiries"

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Just sharing a very recent experience with a credit denial incurred by Bev (DW):

 

It's often spouted here that credit inquiries are unimportant and of no significance.  Generally speaking, I agree with the sentiment; when an application is declined and a creditor cites too many inquiries, it's seldom the reason for the decline.  Instead, whatever that reason is, it's largely intangible (or at least doesn't fit neatly into one of the more boiler-plate descriptions).  So "too many inquiries" is used as a fall back reason.  However, there are some creditors who are recent-inquiry adverse (and this fact shouldn't be dismissed with a blanket hand waive gesture). 

 

Bev's experience strongly suggests that US Bank is one such creditor (and you're welcome to infer from that any aspersion you may desire to cast on US Bank; the point is that US Bank has some attractive products and it's best to be aware of their inquiry-averse nature when applying).  I've had a US Bank Cash+ card for a year now and most quarters I exceed the $2500 quarterly 5% cb spend cap.  It seemed reasonable to get a second such card into our household, and I had Bev apply in March.  They pulled EQ, which reflected several inquiries, 5 of which were recent (4 related to mortgage shopping in Oct/Nov, and 1 for a new cell phone account in Oct).  Her FICO was stated as 791.  She was declined for "Too Many Inquiries".

 

I intended for her to call to recon, but she's a busy gal.  By the time she called it was too late to seek a recon; 30 days had elapsed since the decision notice and they couldn't review their decision.  So I had her reapply.  By this time, all of her inquiries had aged out of the most recent 6-mo window. 

 

No instant approval, but approval came through by email 3 days later.  (A nominal $5k Sig VISA line was granted; her average open line is something like $18k.)  No appreciable change in her credit report between apps (aging of inquiries was the most significant change; none of those had aged past a year).

 

So, really just sayin':  Inquiries don't matter (until inquiries matter).

 

 

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Yes, that is true. But that is more the exception than the rule. Another exception is Citi will automatically deny you a new card for more than a couple of inquiries within the last 7 days and there's nothing they can do to get around that. You just have to reapply later.

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Inquiries "don't matter" in the sense that if your profile is otherwise great, inquiries are not going to substantially tank your score or hurt anything. The impact is minor and once you get past a threshold of "a lot" of inquiries, your score stops dropping from them, at least it seems so.

 

But, that doesn't mean lenders don't care about inquiries at all. Some are more sensitive than others. US Bank is definitely sensitive to inquiries and new accounts and probably even more so right now.

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One thing I would add is that most of the time, when people are told that INQs don't matter, it is in the context of they are trying to clean reports/raises scores and they think that disputing/removing INQs will be this huge benefit to their score, or they were denied for credit and the letter said too many INQs as the 4th reason and they fixate on that, rather than reasons 1-3 which are usually things like lates, utilization, age of accounts, etc. and the are things that really matter.

 

There are certainly some lenders who are INQ sensitive, some are new account sensitive, etc. regardless of overall report.

Edited by CTSoxFan

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21 hours ago, hdporter said:

Just sharing a very recent experience with a credit denial incurred by Bev (DW😞

 

It's often spouted here that credit inquiries are unimportant and of no significance.  Generally speaking, I agree with the sentiment; when an application is declined and a creditor cites too many inquiries, it's seldom the reason for the decline.  Instead, whatever that reason is, it's largely intangible (or at least doesn't fit neatly into one of the more boiler-plate descriptions).  So "too many inquiries" is used as a fall back reason.  However, there are some creditors who are recent-inquiry adverse (and this fact shouldn't be dismissed with a blanket hand waive gesture). 

 

Bev's experience strongly suggests that US Bank is one such creditor (and you're welcome to infer from that any aspersion you may desire to cast on US Bank; the point is that US Bank has some attractive products and it's best to be aware of their inquiry-averse nature when applying).  I've had a US Bank Cash+ card for a year now and most quarters I exceed the $2500 quarterly 5% cb spend cap.  It seemed reasonable to get a second such card into our household, and I had Bev apply in March.  They pulled EQ, which reflected several inquiries, 5 of which were recent (4 related to mortgage shopping in Oct/Nov, and 1 for a new cell phone account in Oct).  Her FICO was stated as 791.  She was declined for "Too Many Inquiries".

 

I intended for her to call to recon, but she's a busy gal.  By the time she called it was too late to seek a recon; 30 days had elapsed since the decision notice and they couldn't review their decision.  So I had her reapply.  By this time, all of her inquiries had aged out of the most recent 6-mo window. 

 

No instant approval, but approval came through by email 3 days later.  (A nominal $5k Sig VISA line was granted; her average open line is something like $18k.)  No appreciable change in her credit report between apps (aging of inquiries was the most significant change; none of those had aged past a year).

 

So, really just sayin':  Inquiries don't matter (until inquiries matter).

 

 

 

You're drawing this conclusion from the language in a computer-generated AA letter?

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2 hours ago, cv91915 said:

 

You're drawing this conclusion from the language in a computer-generated AA letter?

 

I'm attributing the difference between the denial and approval to the only significant variable that changed appreciably in between the two applications.  (And, yes, to an extent inquiries became a focus because they were the only reason specifically identified as the reason for rejection.)

 

There's no way to be 100% confident in any such conjecture.  But I feel as confident in this suggestion as I might were I to infer that the reason I (hypothetically) sold a house this month, that had sat on the market for months previously without an offer, is because last month I got rid of the horse I was housing in my living room.

 

 

 

 

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9 minutes ago, hdporter said:

 

I'm attributing the difference between the denial and approval to the only significant variable that changed appreciably in between the two applications.  (And, yes, to an extent inquiries became a focus because they were the only reason specifically identified as the reason for rejection.)

 

There's no way to be 100% confident in any such conjecture.  But I feel as confident in this suggestion as I might were I to infer that the reason I (hypothetically) sold a house this month, that had sat on the market for months previously without an offer, is because last month I got rid of the horse I was housing in my living room.

 

 

 

 

 

So it was language in the computer-generated AA letter plus conjecture that led you to this conclusion.  :) 

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1 hour ago, cv91915 said:

 

So it was language in the computer-generated AA letter plus conjecture that led you to this conclusion.  :) 

 

That sadly represents an impressive day's brain output on my part these days ...

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