Merry Silbaugh, ABR
Associate Broker   Cell 602-617-3245
How Inquiries Affect Your Credit Score
Lenders often make "promotional inquiries" before sending you preapproved credit cards, or financial institutions where you have accounts may review your records before offering you a new level of service, or potential employers and landlords may want to check you out. But don't worry about most of these inquiries. Your own copy of your credit report includes all kinds of inquiries that nobody else will see.

"All of those extra inquiries are ignored by the Fair, Issac scoring model," says Craig Watts, consumer affairs manager for Fair, Issac, which designs the credit-scoring calculations most lenders use. "The only inquiries we care about are the ones you authorize, asking for new credit," says Watts.

Lenders worry that if you've requested too much credit, you might get overextended and have a hard time paying it back. The credit-scoring models give you a bit of leeway to shop around. For example, any mortgage or auto loan inquiry you authorized in the past 30 days appears on your credit report but isn't included in your score. And beyond that, any similar inquiries made within a two-week period (a slew of requests from mortgage lenders, for example) count as one inquiry.

About two-thirds of your credit score is based on whether you've paid your bills on time and how much debt you have. Your credit history, how long you've had credit, how many accounts you've opened recently and the type of credit you have (variety is better) are next important, says Watts. Multiple inquiries are the least important category, Says Watts.


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RE/MAX Sun Properties
16704 Ave. of the Fountains 101 • Fountain Hills, AZ 85268
Associate Broker • Cell 602-617-3245