There always seems to be a lot of interest in how the FICO® Score is impacted when a consumer applies for credit. In truth, these credit inquiries account for a relatively small percent of the score (less than 10%, in fact). Because of ongoing interest, let’s walk through some interesting facts about 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.
So yes, inquiries can impact a FICO® Score, but not by all that much, in the grand scheme of things.