So I happened to be listening to the Suze Orman show yesterday and a woman called in saying she was looking around for a good mortgage deal. The caller wanted to know if a loan officer, who told her that if she keeps getting her reports pulled by different lenders that it will lower her score, was correct. Suze told her that this INCORRECT, what lowers your score is APPLYING for credit, not just having lender pull your report to see what your score is. I shudder to think of all the people who heard this and believe that somehow FICO knows the difference between an inquiry by a lender for information only, and one for an actual application.
I may be wrong, but I thought if it was multiple inquiries in a short period of time from a mortgage lender, that these would be considered one inquiry.
jr u r right but that is not what tehe question is. It seems that Suze is saying that someone looking at your report will not decrease. If they are doing a soft inquiry then it shouldn't but if it is hard....well we know the rest.
You're correct, *as long as* the lender codes them as a mortgage inquiry and it's within the time frame (which I think is 10 days??). But this poor woman had been shopping around for a month already and was in no hurry to buy.
FairIsaac a while back announced new mortgage loan products that would consider multiple inquiries within a certain time period for auto and mortgage loans as one inquiry. It seems the problem is that banks get used to using a particular program for getting their fico scores and are loathe to change them. I've called a couple of the companies that supply trimerge credit reports to mortgage brokers and asked them what scoring program they use and none of them have named the nextgen fico products(i believe it is the nextgen programs that consider the multiple inquiries as one). I understand a popular fico scoring program for equifax is Beacon 96 (thats 96 as in 1996). Incidently the new nextgen Fico program for equifax is Pinnacle. Now, is it just me or does this seem like way too much jargon!!! Whats really funny is that most mortgage brokers don't even know which program they are using!
I believe they can get the score with a soft inquiry...which would not impact your score. I could be wrong on this though... L
Im a pro! I get scoring! LOL To answer your guys question New Generation FICOs which a majority of lenders in the US are now using do not, I repeat do not, take into consideration mutiple auto or mortgage inquiries into the FICO score. I can atest to this myself. I have 7 inquiries for mortgages on my Experian Report all within the last month. While my credit expert score has fallen 21 points... yes 21 points my real fico has not changed at all and in fact has gone up a few points... Also if you look on your equifax report you will see the mortgage inquiries noted as EU and these are not listed as hard inquiries under score power... Im not sure how trans union or experian note the inquiriy but it does not affect your fico whats so ever. At least not in my case.. and if your lender does not use new generation fico... you should be using that lender... Kev
Kustum, I'm curious why do you say that most lending institutions use the NextGen scores? So far as I can tell most don't from my own experience with trimerge reports and from reading Washington Mutual's underwriting requirements. Wamu specifically says they do not accept the NextGen scores-and that they use Experian's Fico, Equifax's Beacon and TU's Empirica.
Can somebody explain to me, what information is available to a creditor from a hard inquiry, that isin't available on a soft.
As much as I like Suze Orman, she is not very knowledgeable about credit issues. I have heard her say more than once a totally wrong answer about credit. Charlie
Typical Ego of a successful Financial Planner. They think they're right when sometimes they're not. ~
jrjr35, A creditor from a hard inquiry can see up to a 24 month payment history(like you see on an Experian Credit Report). They can often see the dates associated with your addresses and whether you put rent or own with that address. I've seen things listed as ordinary accounts that were reported as collection accounts on a creditor's report. And they can have different scoring model scores that the consumer doesn't have access to which depend more on the industry and what the application is for. I've seen a report with both the Experian Risk Score and Bankruptcy Score. On the other hand, they only see your hard inquiry section and not all the softs you put on there disputing your file
Typical Ego of a successful Financial Planner. They think they're right when sometimes they're not. Butch ==================== Which one are you? L O L Just teasing you Butch. Couldn't resist must have fell into temptation. LOL again,
