Hard inquiries and credit scores

[Boscoe]

Here is another question:

I recently heard that the FICO (and FAKO for that matter) scores do NOT consider any inquiries older than 12 months. While inquiries in months 13-24 show up on credit reports requested by potential lenders/creditors, they do not factor in the FICO score.

Can anyone confirm this? I have many many inquiries, but only a couple since last August.

Thanks.

[Boscoe]

I guess I will answer my own question - yes, inquiries in last 12 months affect the credit score, but not beyond.

Actually makes sense - the concern for lenders would be that you have other debt outstanding or currently being applied for. Very doubtful that any application process would take anywhere close to an entire year.

[HHM]

Inquiries are only a very minor aspect of your credit score. And as the title of your thread suggests, there is a difference between soft and hard inquiries.

Soft Inquires are marketing inquiries...i.e. creditors buy a list of people from the CRA that meet certain requirements (this accounts for all the junk mail credit offers people receive). These inquires ARE NOT factored into your score, NOR are they seen by a lender. The only credit report that can SEE these inquires is the one the consumer orders for themselves, commercial lenders do not see soft inquiries.

Hard inquires are the ones the debtor specifically authorizes when they are seeking a loan of some kind. If the Hard inquires are spaced close together (i.e. if you are shopping for a car or mortgage)--about 2 weeks--, those inquires tend not to affect your score. But if you have many different inquires from many different type of lenders over a extended period of time, those inquires could have a "minor" negative effect on your credit score.

[emoney]

As for their effect on scores, mine was lower five points one time and ten points the next time.
regards,
emoney