Blog Archives

“Credit Inquires” Not All Created Equal

“Credit Inquires” Not All Created Equal

A “credit inquiry” is a formal request to review a person’s credit report and stays on ones credit report for 120 days after it was pulled.  A person’s credit score is comprised of five different components, with “new credit” being one of the smallest variables.  New credit accounts for only 10% of a person’s overall credit score.  Searching for new credit is relevant to your credit score because when you make a credit inquiry, it’s a specific request to increase your level of indebtedness. The reasoning behind why inquiries are viewed negatively is that the possibility of taking on additional levels of debt increases the probability of a default.  For each new credit inquiry, it increases the probability that you’re taking on larger amounts of debt, which makes it less likely that you’ll make good on your payments to your creditors. Read the rest of this entry