So, what’s an inquiry?

After applying for credit, you give permission to lenders to “inquire” about your credit report. You can see a list of who has inquired about your credit within your credit report. It’s important to remember the only inquiries that count toward your FICO scores are the ones that come from applying for new credit.

What affects my FICO score, and how?

Here's some quotes directly from Fair Isaac Corporation, or FICO, on what affects your score:

“FICO’s research shows that opening several credit accounts in a short period of time represents greater credit risk.” -Fair Isaac Corporation
"In regards to inquiries, here is an idea of how much one inquiry can affect your credit score: Typically less than five points will be taken off your score for one inquiry." -Fair Isaac Corporation

Remember: Inquiries aren’t the only factors that can alter your credit score. How soon you pay your bills and the amount of debt you accrue are some of the most important factors that impact your credit score.

How does rate-shopping affect my credit score?

When looking for a student, auto or home loan, lenders might request your credit report. Don’t worry! FICO scores ignore these inquiries made within the 30 days prior to receiving the loan. So, if you find a loan within 30 days of shopping, the inquiries won’t affect your score within the time period.

How can I improve my credit score?

Some of the easiest ways to improve your score are to:

Pay your bills in a timely matter.
Avoid making multiple big purchases on your credit card.
Only apply for and open credit accounts when necessary.
Stay up-to-date with your credit accounts so your account and credit reads correctly.

For more in-depth information about credit inquiries and your FICO score, visit www.myfico.com.

Helpful Tips about Credit Checks and Inquiries