How Long Does a Credit Inquiry Affect a FICO Score?

A credit inquiry occurs when a creditor obtains your credit score when it checks your credit. Only credit inquiries that result from you applying for new credit, such as a new car loan, affect your FICO credit score. The FICO score is the most widely used credit score, calculated using the algorithm developed by the Fair Isaac Corporation.

Time Frame

According to the Fair Isaac Corporation, credit inquiries affect your credit score for one year. However, they appear on your credit report for two years.

Features

Certain inquiries may be treated differently than others. For example, if you apply for several mortgages at once, the credit scoring model counts the resulting inquiries as only one inquiry if all of the inquiries occur within a short period of time. This minimized the negative effects on your credit score.

Effects

Credit inquiries decrease your credit score, but not by much unless you have several inquiries in a short period of time. Your credit score falls because statistics show that people with more inquiries are more likely to declare bankruptcy, according to the Fair Isaac Corporation.

References

• MyFICO: Credit Report Inquiries
• MyFICO: Inquiries