Question


Good Girl

How much will recent credit inquiries affect my score?

I will be applying for a home mortgage very soon. I applied for one a few months ago, but was not approved for enough to buy anything decent. I had decided to pay off some medical bills and try again soon, which would be now. In the mean time, my friend who works retail, asked me to fill out a credit card application (to help her numbers at work) and told me that a person is allowed 10 credit inquiries before it starts to affect his/her credit score. Since coming home today, I have researched and it seems that statement is not true. So, will someone please inform me how much this inquiry will affect my *very near-future* re-check for the home mortgage approval amount? By the way, I may or may not be applying within the next month. I have to give the paid delinquent bills time to reach the payees. All advice and help is appreciated!

6 months ago - 3 answers

Best Answer

Chosen by Asker

Well, to start off ANY type of credit card application lowers your credit score by a small number of points. If you combine a few of them over a short time span it hurts even more. Literally more than 3 within a year will start to hurt your score quite a bit. The nature of inquires is different though. The first time you apply for a mortgage counts as a hit on your credit score, but after that they allow you 45 days to continue to apply for mortgages as this is considered looking for the best possible deal. You mentioned paying off medical bills. These are not typically reported on your credit report unless they become delinquent. So if they are on your report chances are they are collections accounts. This is probably hurting your credit considerably. Despite what many people think, paying off deliquent collections accounts, such as medical bills, does not help your credit report in any substantial way as they are still reported on your credit report. They are just required to notate that it has been paid or settled. The best thing to do is wait if you just applied less than 2 months ago chances are your score has not gone up that much as it takes a long time for credit scores to recover after going down. Without more specific information as to whats on your report it is hard to make a resaonable guess as to whether or not you will get approved for a higher amount. My guess probably not. At the very least 10 credit card applications before it affects your score is defintely not an acurate statement.

Source(s)

Accoutant/Financial Consultant

by Josh K

6 months ago

Asker's Rating: 

Other Answers

Your "friend" lied to you. Every hard inquiry on your credit report for new credit lowers your credit score from 5-8 points. They also remain on your credit history for 2 years. Too many credit inquiries is a red flag for lenders, it makes it appear that you are desperately trying to get credit.

by Dixie Darlin'- 6 months ago

Inquiry on your credit report for new credit lines can lowers your credit score. They also remain on your credit history for some time. Agencies often count inquiries from same kind of lenders within a particular period as one - to choose from the best. If you're constantly applying for new credit cards, it can hurt your rating, especially if you're getting turned down for them. Applying for too many credit cards, in a way, shows that you don't have enough capital to afford your cost of living on your own income. And if you're getting turned down by creditors, it's an indication that your credit standing just isn't up to par, and other creditors will weigh these rejections against you.

by Mia Jacob- 6 months ago