Cost of one Inquiry on Score

Discussion in 'Credit Talk' started by NanaC, May 22, 2001.

  1. NanaC

    NanaC Well-Known Member

    I thought I'd share my experience since I know we are trying to get a feel for the value of things on our scores..
    My equifax score dropped 8 points exactly with the only difference being one inquiry.
  2. Momof3

    Momof3 Well-Known Member

    I had one inquiry as well and my score dropped 2 points. I don't think we will ever figure this thing out LOL. I know b/c my lender pulled my score 677, then I pulled 2 days later 675, the only change was the added inquiry.

  3. NanaC

    NanaC Well-Known Member

    Geez, Mom, this is crazy, isn't it??
  4. Momof3

    Momof3 Well-Known Member

    I know Nana C, between credit reports/scores etc and this mortgage process I am about to pull my hair out LOL.

    I swear once I am in our new house I am going to forget about credit scores forever.

    My goal was a house after that I am happy.

  5. DaveLV

    DaveLV Well-Known Member

    Remember, if the FICO equation were linear I doubt Fair Issac would be able to make much money on selling it to others. Any particular variable's weight must be determined by the values of a multitude of other variables.
  6. Nave

    Nave Well-Known Member

    And Mom, how many did you have prior to the updated report?
  7. NanaC

    NanaC Well-Known Member

    You know, that's funny you'd say that..I had 0 inquiries in the last 12 months.
  8. Nave

    Nave Well-Known Member

    Thats odd Nana...I guess I answered you before you actually posted what I was answering :) I feel like I am in an Escher!
  9. Nave

    Nave Well-Known Member

    And now the post that I made that you replied to is gone...the one where I wrote:

    Not really, if someone has 0 or 1 inquiry and adds one their score may drop by 8 points...yet someone with 15 inquiries who adds one may only drop 2 points. (Like DaveLV says the variables are all weighted on each other and any information in a particular credit report will affect the weight of changing other variables)

  10. NanaC

    NanaC Well-Known Member

    Nave, hmmm, something is going on...

    Oh, PBM....wierdness occurring here and it's not me! HAHAHAH

    It'll be interesting to hear Mom's response!
  11. Momof3

    Momof3 Well-Known Member

    I think you are on to something there. I have quite a few inquiries, not sure of total. But that would make sense that one more really won't hurt me as much. I believe Roni also had roughly 2 points taken away from hers for an inquiry and she had many on her report as well.

  12. NanaC

    NanaC Well-Known Member

    Doesn't it seem kind of unfair that because I have less, it hurts me more? Go figure these things out..they are crazy!
  13. Nave

    Nave Well-Known Member

    Not really unfair...just the way you would expect it to actually.

    Suppose you had 2034 inquiries...would you expect to subtract 8 points for each inquiry what would be the effect of going to 2035...your score would be off the scale low if you subtracted the same for each without weighting the variables.

  14. NanaC

    NanaC Well-Known Member

    But, on the other hand, instead of positively rewarding me for less inquiries, I am penalized more.

    Not that I think inquiries should be negative anyway..but...just my thoughts..
  15. Nave

    Nave Well-Known Member

    Your positive reward is in the total score being higher, having less inquiries (all other factors being equal) ...

    In other words your report was the same before and after the request for the loan except for the inquiry, and your score was 8 points higher with 0 inquiries than with 1 inquiry

    (hypothetically since she didnt give any numbers)
    Mom's score was ONLY 2 points higher with 9 inquiries than with 10 inquiries (making these numbers up)

    Sometimes the glass is half full :)

  16. breeze

    breeze Well-Known Member

    <breeze counts on her fingers....takes off her shoes and counts on her toes...> duh
  17. Nave

    Nave Well-Known Member

    OK Breeze I'll try and be clearer:
    It's not positive "rewards" for less inquiries, its lower "score" for more inquiries.

    Glass half full Glass half empty.


    Sorry for the mathematical spew above :)
  18. NanaC

    NanaC Well-Known Member

    Ok, as a math teacher, and a taurus (huh, what does that have to do with anything), I understand your point but just disagree with the idea behind it. Not YOUR idea...the CRA's idea..but then again...I disagree with most everything the CRA ... on the other hand, I appreciate your patience in explaining..I should have been clearer in stating that I understood the "reasoning" and just sharing that I think the "reasoning" is unreasonable. You on the other hand are very reasonable and I can reason with you anytime! Is that enough reason for me to end this paragraph now? And, do you ever watch Harry Reasoner?AHAHAHHA


    Breeze, you are too funny..

    This was a fun thread!
  19. VJ

    VJ Well-Known Member

    Re: Cost of Ten Inquiries on Score

    I'm at the point where I believe inquiries have a maximum weight somewhere between 5-7% of your total score.

    Take my simplified example.

    700 fico(will never be able to capitalize that 4 letter word)
    700 x 6% = 42 possible negative point weight of fico.

    What I am trying to say is that if I have a fico of 700 with
    zero inquiries,I could drop it to about 658 (700-42)by having 10 new inquires.

    What is bizarre is the weight of the inquiries is not linear.
    Again, my example.

    First inquiry (8 point hit),second (7 point hit),third (6 point)forth (5 pts), Fifth (4 pts), sixth (3 pts)seventh (2 pts) and after that about 1 point each.

    This is the opposite of logical thinking(the more inquiries,the more desperate) which would normally imply the higher inquiry count should be asymmetric and geometric at the back end, NOT the front end.

  20. breeze

    breeze Well-Known Member

    Re: Cost of Ten Inquiries on Score

    Thanks nave ;)

    I am a blond, NanaC, teehee.

    No math, please, my degree is in English. I could diagram the sentences..........

    breeze <just being silly>

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