Ok, I know that the more INQs on ur credit report, the lower your score. Now can anyone explain why this is? It sounds like a scam by creditors to help superficially boost rates to consumers. Think about it, your credit score should be a reflection of how timely you pay ur debts and such. Whether or not you pulled your report a lot or shopped around for a good mortgage or auto loan online has NO bearing on ur ability to pay debts. Sheeit, net assets is more important than INQs, yet having $100,000 in the bank vs $100 has no affect on ur report. When you go to a car dealership, should they be able to RAISE the price of the car simply because they saw you go to the two dealers across the street? Hell no...they just wanna screw up your score so that u cant shop around loans too much/pull ur report every so often.
I don't think it's irrational to think that a person who makes multiple applications for credit cards within a short time is higher risk. It could be that the person just got notice of a layoff and intends to get through the hard times ahead by floating on credit. Of course, there may be other explanations that do not point to higher risk but the models are based on statistical probabilities which are not sensitive to the exceptional case. The credit bureaus say that they identify bargain hunters for auto loans and mortgages by counting multiple inquiries as one if they occur within a short period of time. Actually, I don't believe them. When I applied for a car loan through the dealer, several lenders ran credit checks. I had them removed and my score went up even though nothing else had changed. I learned from that experience not to trust dealers to take care of financing. Get it approved first and then shop. I also don't think that having alot of money in the bank means that a person is more likely to pay on time. Look at Michael Millken and all of the crooks involved in the S & L mess. Some of the least responsible people in the world have alot of money. On the other hand, I know poor people who handle money like magicians and always pay on time. The people at the top of the economic heap do not have a monopoly on credit worthiness.
Well not just money in the bank but possibly seizable assets. I mean when you get a home loan they do appraisals and calculate loan-to-value ratios and also factor in existing loans and other debt and assets. When you get a cc u can lie and say u make 100k/yr and they hardly ever check. While the credit limit on a cc is usu. smaller, it can still be a sizable debt load
Just what I have been saying about The credit Ind. Seems that in in spite of my critics folks are finding out the truth.
