does a credit score inquiry impact my credit score?

Question

I want to shop for the best (lowest) rate. My credit score is 800+ but I am told I have to allow my credit to be "run" in order to "quote" most rates. Does running credit lower a credit score, or is this subjective and based on interpretation?

Answer 1

To add more to OC9999s answer, to allow for rate shopping for mortgages and autos only...there is what is called de-dupe logic. This means that credit can be run many times for these types of purchases within a 14 day period and will only be counted as one hard inquiry. I have included a link in the sources area that will not only explain de-dupe logic, but how Fico scores come about. It does not give the exact formula in how Ficos are determined, but does give a general explanation.

Answer 2

If you are checking your credit score, or a company checks your report to give you a "pre-approval" then those are considered SOFT inquiries and do not effect your score.

If you actually request credit that is a HARD inquiry, then each inquiry does effect your score. It depends on a lot of factors as to how much. If you have only 1 or 2 every few months the effect is minimal, around 5-8 points. The more you go above that the more negative effect it will have. But, there is another side note on this, which does appear to be your situation.

The scoring systems allow for "rate-shopping". That is you are allowed to request credit from multiple lenders for things like home or auto loans. If you do this in a set period of time it only counts as one inquiry, no matter how many times it was run during this time. This period could vary, but is generally about 2-4 weeks.

Answer 3

When you check your credit, it doesn't change your score. When a credit card company, or potential vendor checks your credit, it may very slightly lower your score. Don't worry about it.

People should not live their lives trying to maximize their credit score!!