Bridget's Blog


Inquiries and Your Credit - How They Effect Your Credit

This is good information from Larry Bettag about how inquiries affect your credit.  There is so much misinformation about credit out there that it's nice when folks in the mortgage business get it right!  

Great job Larry!  


Recently I wrote a post about credit scoring entitled What You Need to Know About Credit Scoring. There were 5 variables that affect the credit score of the borrower. Needless to say, I really think that while credit inquiries have the lest amount of weight towards your credit, it also happens to be the most misunderstood category.

The 5 Categories that Specifically Impact your Credit are:

  1. Payment History
  2. Outstanding Credit Balances
  3. Credit History
  4. Type of Credit; and
  5. Inquiries

Like I said, Credit Inquries are the least impactful, but probably the most frequently misunderstood. So... what's the 101 on credit inquries?

What's an inquiry?

Basically, it's when you specifically authorize lenders to look into your credit, specifically from a credit bureau. IF THE CREDIT INQUIRY WASN'T AUTHORIZED BY YOU, THEN IT'S NOT A HIT AGAINST YOUR SCORE!!! Know that so that you don't freak out!

Does applying for new credit affect my credit scores?

The short answer is probably. The reality is the more you apply for NEW CREDIT, the more likely it is that you need credit to live. In other words, you're having a hard time making ends meet and, therefore, are applying for new credit to shoulder some of they debts. If you need credit to general, that ain't a good thing! Looking for credit too much means that your score is probably gonna drop!

How much will credit inquiries affect my score?

Bottom depends. So abstract. So cliche. Really it will affect each person differently based upon their own credit history. For example, don't use credit often and have an inquiry....then don't worry about it. But if you need a briefcase to hold all of your credit cards together, then this inquiry is more apt to hurt a least a lot more than for the dude who has perfect or a stellar use of credit. Here's a good stat for you....Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. I don't know the science of credit scoring, but I do know that there's a reason for everything.

Are all Credit Inquiries treated Equally?

Nope, nada, fogettaboutit! Credit inquiries that go to rate shopping are treated with less scrutiny than those inquiries used to obtaining new credit. You have a 14 day shopping range to look into credit for a mortgage, or getting a better rate. CAPECHE? Bottom line is that for multiple inquries for rate shopping, the scoring ignores mortgage, auto, and student loan inquiries made in the 30 days prior to scoring.

If you choose, you can find me here:

          Follow The Twittering Tweets on Twitter        Follow Bettag's Blabs on Facebook        Google Me If You'd Like        Follow Me On Linked In


Cherry Creek Mortgage Company       Path 2 Buy Certified Coach Follow me on Pinterest                 

                      NMLS ID#158606          Equal Housing Logo     An Illinois Residential Mortgage Licensee


Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO or


If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 5 commentsBridget "Mortgage Mama" McGee • January 21 2013 09:02AM


Thank you Bridget for posting Larry's information on Credit Inquiries!  Too often we get over excited about the inquiries on the credit.  Yet, we still need to understand their impact when authorized way too many times in the home buying process.

Posted by Dan Hopper, Denver Realtor / Author / Advocate/Short Sale (Dan Hopper - Individual Proprietor) over 7 years ago

You are correct the least known on credit score is the credit inquires on your credit report.  Thanks for the info.

Posted by Tim Lorenz, 949 874-2247 (TIM LORENZ - Elite Home Sales Team) over 7 years ago

Thanks for sharing credit inquiries information.  Good to pass onto clients.

Posted by Edward & Celia Maddox, EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD (The Celtic Connection Realty) over 7 years ago

Thanks for the repost......I appreciate it B!!!!!  You da bomb!

Posted by Larry Bettag, Vice-President of National Production (Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001) over 7 years ago

Dan, I hear every day "I don't want you to pull my credit, because the score will go down".  They don't seem to understand the late payments and missed payments have a much bigger impact! 

Tim, Unfortunately there are too many folks that don't understand the whole of credit...Larry is doing a great job of helping to educate!

Edward and Celia,  Please do, there is a ton of misinformation out there!

Larry, My pleasure!  You are doing a great job of helping folks to understand the importance of an educated buyer!


Posted by Bridget "Mortgage Mama" McGee, Maryland Mortgage Mama NMLS#196068 (SWBC Mortgage 410-960-2061) over 7 years ago