Inquires have several factors to consider.
When shopping around for a mortgage or a car, you have forty-five days to complete your shopping spree. If all credit reports are pulled within a forty-five day period, it will only count as one inquiry. For example, if you apply with one Mortgage Company and decide to switch to another, both inquiries will count as one as long as the second Mortgage Company pulls the credit report within 45 days of the first.
However, if you are shopping for both a mortgage and a car, these are considered separate inquiries and will count as two.
Each inquiry made averages about five points in deduction from your credit score. After ten inquires per year, inquires will no longer affect the score.
Several types of inquiries do not affect the credit score at all.
- When applying for a job
- When submitting an application for insurance or to start a new utility account (e.g., phone, cable, etc.)
- When a lender automatically reviews your credit account to confirm that other accounts have been paid on time and credit limits are not maxed out
- When an individual obtains a personal credit report through www.annualcreditreport.com
- When promotional pre-approved credit card offers are received in the mail.
These are what the credit reporting agencies commonly call a “soft pull” and do not have an impact on your credit score.