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#1679998 - 03/20/12 08:24 PM Excessive Credit Inquiries
SUSANE1 Offline
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Joined: Mar 2008
Posts: 808
I know there has been discussion regarding obtaining a new credit report at renewals, how often, how old the credit report, etc, but I am reviewing a credit report pulled today with a 582 score and for the life of me, I still don't understand how scores are derived. The customer does have a $497 charged off account, but the rest of the data is from our bank with no past due at all. Account balances total $1,250 with a monthly payment of $238 ! In the derogatory section, it lists "too many inquiries last 12 months." There are a total of 3 - period. Our bank on 08/16/2011 and 03/20/2012 and one 07/07/2011. Surely the small charge off and our credit pulls did not tank her score (?).

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#1680015 - 03/20/12 08:42 PM Re: Excessive Credit Inquiries SUSANE1
Marnie Offline
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Joined: Nov 2007
Posts: 437
Nevada
In addition to what you mentioned, there are many other factors involved: how long she's had credit, the numer of accounts, the highest dollar amount, % of revolving available, percent of paid as agreed versus total accounts--a whole lot of factors, not just inquiries. The fact that she has very few accounts on her report coupled with a chargeoff would probably lower her score more than the person who had lots of accounts, never paid late but the same dollar amount charge off. Just saying I wouldn't get hung up on the number of inquiries because there are many factors involved. It's all about evaluating risk based these factors which make up her history.

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#1680024 - 03/20/12 08:49 PM Re: Excessive Credit Inquiries SUSANE1
SUSANE1 Offline
Platinum Poster
Joined: Mar 2008
Posts: 808
Yes, I understand. I just wish the matrix was for public consumption !

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#1680040 - 03/20/12 09:06 PM Re: Excessive Credit Inquiries SUSANE1
Marnie Offline
Gold Star
Joined: Nov 2007
Posts: 437
Nevada
This website gives an estimate of how factors are looked at. Don't know how accurate it is, but I've seen several similar explanations like this one.

http://money.howstuffworks.com/personal-finance/debt-management/credit-score1.htm

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