Why worry about inquiries when you're approved for credit

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oldsoldier
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Why worry about inquiries when you're approved for credit

Postby oldsoldier » Tue Apr 28, 2015 3:32 pm

I noticed that it seems a lot of guys here and other sites worry alot about inquiries. I was wondering why it would even bother you if you were approved for the card you applied. Wouldn't the new CL help your credit score more than the inquiry and new account hurt it?
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CarefulBuilder14
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Re: Why worry about inquiries when your approved for credit

Postby CarefulBuilder14 » Tue Apr 28, 2015 3:47 pm

oldsoldier wrote:I noticed that it seems a lot of guys here and other sites worry alot about inquiries. I was wondering why it would even bother you if you were approved for the card you applied. Wouldn't the new CL help your credit score more than the inquiry and new account hurt it?


Some issuers don't like to see a lot of inquiries, but a few are generally harmless. Inquiries and new accounts can make it a little harder to get other new accounts in the future.

If someone has low utilization and no baddies, then the inquiry and new account will hurt more than the new CL helps.
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Vermonster
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Re: Why worry about inquiries when your approved for credit

Postby Vermonster » Tue Apr 28, 2015 3:59 pm

The big IF is that you do get approved. Some of it is over blown by the new fad with the SM Barclay card. Barclay tends to be very inq sensitive, and will decline if there aren't valid explanations for the inqs.

You also have to remember that an approval now for a $500 Cap One could hurt an approval later for a nicer card or larger limit.
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kdm31091
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Re: Why worry about inquiries when you're approved for credit

Postby kdm31091 » Tue Apr 28, 2015 9:42 pm

Inquiries remain for two years, so IMO it is wise not to rack up a ton. You are usually going to get better terms (limit and APR) with fewer inquiries.

Thicker files can withstand more, though.

Nixon
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Re: Why worry about inquiries when you're approved for credit

Postby Nixon » Tue Apr 28, 2015 9:49 pm

Some lenders are extremely inquiry sensitive, while some are very new account averse.

Just keep it reasonable. I personally have 13 on Experian, 3 on Equifax, and 0 on Transunion.
Everyone seems to pull Experian for me. :|
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CarefulBuilder14
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Re: Why worry about inquiries when you're approved for credit

Postby CarefulBuilder14 » Tue Apr 28, 2015 10:33 pm

To what extent do others think "too many inquiries" is partly a go-to excuse in the event an issuer feels "swipe envy"? Is "too many inquiries" just a nicer / more legal way of saying, "it's clear that you focus your spending on other cards, and you're not going to generate much transaction revenue for us, now or in the near future, and we just don't want to bother with you or risk taking a big loss in case you go broke"?
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Nixon
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Re: Why worry about inquiries when you're approved for credit

Postby Nixon » Tue Apr 28, 2015 10:35 pm

I can understand the concern with inquiries, but if you clearly show a history of ability to repay, this should be taken into account. I agree that inquiry counts and recent history with respect to requests for credit is mostly a "catchall" for certain lenders.

It's the reason why I can't get in with Citi.
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flan
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Re: Why worry about inquiries when you're approved for credit

Postby flan » Wed Apr 29, 2015 7:27 am

Nixon wrote:I can understand the concern with inquiries, but if you clearly show a history of ability to repay, this should be taken into account. I agree that inquiry counts and recent history with respect to requests for credit is mostly a "catchall" for certain lenders.

It's the reason why I can't get in with Citi.


No. It's the reason they're telling you. I know somene who recently got a citi card with 30+ inquiries on all his files. He's got 800+ scores, and a long, long perfect history. When I didn't get a citi card a few years ago, I was told excessive inquiries were the reason. I had *ZERO* inquiries on the file they said they pulled. Something else, probably the number of new accounts, was what scared them. I don't think I have the letter, but inquiries was one of two or three reasons listed.

oldsoldier
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Re: Why worry about inquiries when you're approved for credit

Postby oldsoldier » Wed Apr 29, 2015 11:33 am

I see, from what I am reading here inquiries don't necessarily mean that your scores are in the tank which was why I asked the question. I guess you guys are seeing the big picture. I was thinking History+Score=good rates. What I should be looking at is the whole credit picture not just score.
Thanks all.
BoA Cash Rewards $13,000
Chase Sapphire Preferred $14,000
BoA Better Balance $12,000
Amex Every Day $24,000
Discover It $17,000
NFCU Platinum Visa $25,200
Barclay Arrival WMC $10,000
Cap One QuickSilver WMC $6,200
WF Cash back Visa Sig $11,000
Citi Thank You Premier $11,600

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CarefulBuilder14
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Re: Why worry about inquiries when you're approved for credit

Postby CarefulBuilder14 » Wed Apr 29, 2015 12:56 pm

Also, once a person has about 10 inquiries on a report, additional inquiries don't do much to change the FICO. The FICO harm of going from 0 to 10 inquiries is, I think, greater than the marginal FICO harm of going from 10 to 30. This leads some people with 10+ inquiries to feel that the damage is done, and that they might as well incur a few more HPs for CLIs or new cards.

I have 6 on Experian, only 2 of which will fall off in the next year. Most of the cards I'm considering pull Experian, so that gives me a little pause before applying. Anecdotally, it does seem that Experian is less sensitive to inquiries than the other CRAs are.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when



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