The impact of an inquiry on your FICO score, New information!
What To tell your prospective borrowers if they are worried about you pulling their credit report because of the negative impact of a credit inquiry. This is a long standing question that FICO has changed their stance on many times to find out the latest on where FICO stands now on credit inquiries watch this now…
New information From FICO on Inquiries
• 49% of consumers have no inquiries, 24% have 1 inquiry, and 27% have 2 or more inquiries.
• 57% of consumers score the maximum number of points for inquiries; that is, inquiries are not a factor for at least 57% of consumers.
• If an inquiry does impact a score, it’s typically by a small amount—less than five points, on average.
• 89% of the time, inquiries are not even one of the top four greatest factors impacting the score.
• Only 0.4% of the time, inquiries are the score factor with the greatest impact.
• Only 14% of consumers lose more than 10 points because of inquiries. Only 4% of consumers lose more than 20 points because of inquiries.