| Fair Isaac Corporation ("FIC") is the creator of FICO | | | | First, inquiries, if kept small, have a slight impact on your |
| scores which are the "most widely used credit scores," | | | | credit score unless you have very few credit |
| among credit reporting agencies and creditors. FIC | | | | accounts. However, if you have lots of inquiries and |
| furnishes the computations for credit scores to all | | | | few accounts, then statistics show that "People with |
| three credit bureaus. What is commonly referred to as | | | | six inquiries or more on their credit reports can be up |
| a Fair Isacc Credit Score is a composite of your | | | | to eight times more likely to declare bankruptcy than |
| scores at the three credit reporting agencies or an | | | | people with no inquiries on their reports." |
| average of those three scores. | | | | Second, some inquiries are ignored. Your own |
| A variety of data in your credit files is considered in | | | | requests for your credit report and/or credit score is |
| the mathematical computations which result in your FIC | | | | not considered. In addition, requests for "pre-approved" |
| score. One source of that data that consumers | | | | credit offers are not counted, nor are requests that |
| seldom, if ever, consider is inquiries. Ordinarily, inquiries | | | | are identified as coming from an employer or potential |
| reduce your Fair Isaac Credit Score by as much as | | | | employer. |
| five points each. | | | | Finally, the calculations allow for rate shopping - that is, |
| According to FIC's publication, "Understanding Your | | | | where there are multiple requests within a short time, |
| FICO Score," inquiries are "requests a lender makes | | | | say 14 days, the inquiries are counted as one. Of |
| for your credit report or score when you apply for | | | | course, the system is said to be able to distinguish |
| credit." The report goes on to state that there are | | | | between "a search for a single loan and a search for |
| three general areas of concern regarding inquiries. | | | | many new credit lines. |