Do you Know How Applying for a New Credit Card Affects your Fico Score?
Published on June 28, 2007 9:03 AM ESTIf you are wondering how applying for a new credit card, auto loan or a bank loan will impact your FICO credit score, here are some answers.
When you apply for a new credit card or another kind of loan, credit reporting agencies usually receive a report that there was an inquiry into your account, whether you were approved for a new card or not.
According to fico.org, inquiries usually have a small inpact on the score for someone with an established scredit history. If you have a relatively short credit history, however, there may be a greater impact on the score.
You don't have to worry about pre-approved credit offers in the mail - these inquiries show up on your credit report, but are not counted in the score. Inquiries from employers are not counted either, according to Fair Isaac.
It is also assumed that consumers will consider different lenders before settling on a mortgage or an auto loan, so the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. This is a good thing because if allows you to look around and find the best available rate.
If you have other questions about FICO scoring, visit www.fico.org.
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