Confused about FICO score and inquiries

[SpaghettiBender]

I read on FICO's site that mortgage shopping will only count as one inquiry if done withing 30 days.

Ok, I have two inquiries showing up for the same day, one for 3 weeks later, and are counting against my score!

I don't get it.

Both are different mortgage brokers/lenders

Any clue why?

 

From FICO's site:

Inquiries that may be affecting your FICO® score

Total: 5 Times

Date Company making the inquiry

July 26, 2008 Gemb/Belk

June 12, 2008 xxxmortgage

April 30, 2008 xxxmortgage

April 07, 2008 xxxmortgage

April 07, 2008 xxxmortgageinc/Cbd

[DiggingOut]

From FICO's site:

Inquiries that may be affecting your FICO® score

Total: 5 Times

Date Company making the inquiry

July 26, 2008 Gemb/Belk

June 12, 2008 xxxmortgage

April 30, 2008 xxxmortgage

April 07, 2008 xxxmortgage

April 07, 2008 xxxmortgageinc/Cbd

First, and this is making an assumption that each of the mortgage inquiries was properly coded by the broker/prospective-lender as being specifically a mortgage inquiry:

The above list would score as if they were three or four inquiries, not five. The time limit, depending partly under which version of FICO those lenders used, varies from two weeks to a few weeks longer.

If those banks/lenders have other kinds of loans also, and coded the inquiry under a non-mortgage category, then each inquiry would count separately on its own.

 

There is a more detailed explanation in a free PDF booklet which FICO offers, Understanding Your FICO Score. Go to www dot myfico dot com, choose Credit Education from the menu bar, and click on the booklet to have it displayed to you online.

You may also want to read some of the FICO Forums on myFICO's website for more detail about when the time window may expand beyond two weeks.

 

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The score allows for “rate shopping.†If you’re looking

for a mortgage or an auto loan, you may want to

check with several lenders to find the best rate. This

can cause multiple lenders to request your credit

report, even though you’re only looking for one loan.

To compensate for this, FICO® scores distinguish

between a search for a single loan and a search for

many new credit lines, in part by the length of time

over which inquiries occur. When you need an auto

or home loan, you can avoid lowering your FICO®

score by doing your rate shopping within a short

period of time, such as 14 days.

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Inquiries usually have a small impact. 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.

[GEORGE]

COUNT AS ONE for mortgage/auto is more MYTH than FACT

 

It must be coded correctly

 

Even if it is coded correctly (rare) the HARDS WILL BE THERE FOR 24 or 25 MONTHS FOR ALL TO SEE (manual review)

Edited September 9, 2008 by GEORGE