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how long do hard inquiries stay on your report

Jun 19, 2010
Helpful to 176 out of 189 people

The credit reporting agencies will keep a record of your hard inquiries for 2 years. So, whenever you apply for credit, a lender gets to see how many hard inquiries you've had in that period.

However, hard inquires only subtract from your credit score for one year. And in my experience, they tend to cost you only 5 to 10 points initially and you start getting them back in as little as 6 months if you have no further hard inquiries or other issues that impact your score. Like excessive outstanding balances.

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how long do hard inquiries stay on your report

Jun 19, 2010
Helpful to 176 out of 189 people

The credit reporting agencies will keep a record of your hard inquiries for 2 years. So, whenever you apply for credit, a lender gets to see how many hard inquiries you've had in that period.

However, hard inquires only subtract from your credit score for one year. And in my experience, they tend to cost you only 5 to 10 points initially and you start getting them back in as little as 6 months if you have no further hard inquiries or other issues that impact your score. Like excessive outstanding balances.

which agency does credit karma use

Jun 19, 2010
Helpful to 3 out of 3 people

Looks like TransUnion.

Trends by Age

Feb 23, 2011
Helpful to 1 out of 1 people

Nanci:  There's a lot of factors that can combine to lower your credit score---we'd have to know a bit more about your situation. For example, if you have credit cards with little current activity on them that easily could lower your score. They like to see regular responsible useage--so any unused credit cards tossed in a sock drawer won't help you much. Also, the length of your credit history--if it's under 7 years--that's seen as low to some lenders. Also, the average age of your accounts--the higher the better---is another important factor. An average age of accounts under 7 years is less than optimal as well.

Utilization rates---the percentage of available credit you use--can also drop you like a rock. A sudden surge of spending that taps 50% of your credit limit can have a dramatic effect--even if you pay the balance in full at the end of the month. This drop tends to be even more pronounced if it is preceeded by a long period of inactivity on an account.  I know you say you pay your bills in full and have no outstanding credit card debt--but any activity that spike sup your utilization rate will have a consequence--but rest assured this is only temporary and as you pay off your debts your scores should recover within a billing cycle or two. 

And don't forget tostrictly  limit your hard pull credit inquires--they can ding you for as many as 5-10 points each and can be a drag on your score for up to a year. They stay on your credit report for 2 years, of course, and potential lenders are free to take them into account even if they no longer affect your score.

Now having said all that, let me congratulate you on an outstanding credit score. 777 is nothing to scoff at, my dear. You already qualify for some of the best rates available. And you've clearly earned it. Keep up the good work. And in time, you'll soon be crossing the magic threshold of  800+.   But hey, as far as I'm concerned, you've already established very high quality credit for yourself and anything more is just icing on the cake. So, enjoy to the max! 

Has Credit Karma helped anyone improve their score?

Apr 27, 2011

Credit Karma has done a lot for me--by letting me keep track of hard pull inquiries and the number of active credit lines I have open---it does pass for a decent and free credit card monitoring service. But I don't put as much confidence in the value of my overall score as reported by Credit Karma. They appear more generous than FICO Equifax. I believe this is the gold standard among credit reports. My FICO scores seem to run about 20 pts lower than Credit Karma.

Also, TransUnion--sponsor of Credit Karma-- offers free credit scores thru several websites along with Experian, and these scores vary so widely I have to advise people take them all with a grain of salt. The only real benefit is for comparison purposes and to keep track of your credit worthiness and progress over time.

It's just not a given that Lenders will automatically approve you based on Credit Karma's report--or anyone else's credit scores--for that matter...Lenders have their own internal guidelines to follow and these scores are merely one aspect of that formula---and probably not the most important consideration when applying for a loan. . You may find that having held a steady job for 10 years- or more-- actually carries more weight with a nervous Lender than a 750--765 score  from Credit Karma. That's no bad reflection on them. It's just the way Lenders tend to operate: cautious in the extreme.

Trends by Age

Apr 27, 2011

Wood: True. You may not need a credit score at all. You can pay cash for all your needs. But is carrying a lot of cash around for purchases--both big and small--really a 21st Century solution that is freindly to you, the consumer?   My credit cards give me extended warranty protections. They insure my rental car for free. They insure my goods against theft. Credit cards that are lost or stolen can easily be replaced---they can Fed-Ex' you a new one around the world in a day or two.  But if you lose your wad of cash--or it gets ripped off you--you're totally screwed, duude. That's the chance you're willfully (and unwisely, in my opinion) taking with your negative approach to credit.  furthermore, Amex once went to the mat for me when an online merchant tried to rip me off. They took care of everything and got my money back. Just try hassling a street vendor for your cash back over defective merchandise. Good luck.

Look, I understand the attitude that credit scores and credit cards aren't essential to life as we know it. And I agree up to a point. Flor example, I don't know what people are thinking when they sport 40 to 50 credit cards to their names. That's a cry for help.

Better to keep a small tight group of your favorite cards--5 to 6 would easily serve all my needs-- and simply raise your credit limit as needed.  The point is: responsible use of credit as--the tool it is-- is very cool and very rewarding. It can save your life in a hospital emergency when you don't have cash on you.. And it can insure your goods against ripoffs and damage at no charge to you. Free buyer protection is the best deal in town, to my mind.

Credit cards are a very useful tools indeed. They let me keep the bulk of my cash safely in the bank and still have access to it anywhere, anytime--worldwide.  Mileage and rewards programs are additional useful perks. But to each their own, I guess.

Trends by Age

Apr 26, 2011

Kbbaptist: Oh yes, Dave Ramsey is my favorite guest on Neil Cavuto's show. No doubt he's a shrewd financial advisor. But I do have one bone to pick with him. He says that having credit cards is unnecessary. He thinks they're dangerous. True. In the wrong hands they can get you into trouble. But they've saved my life---literally. When I came down with appendicitis while travelling overseas, my credit cards got me the operation I needed when I didn't have a lot of cash on me. Just try wiring money from a bank when you're lying in a hospital bed!

Dave's points are usually spot on---but his advice seems tailored more to people who have already foten into serious trouble with their credit and are attemptin to dig themselves out. However, credit is far too useful a tool in today's modern world not to have in abundance.

Hotel and airline tickets, car repairs, an occassional restaurant meal, or car rental would be much harder to obtain without the plastic. You know,  I've been turned down for a hotel room because I insisted on paying cash!!  In the end, I had to put the room on my card or walk the streets all night in a strange city.  So, as much as I love Dave Ramsey---his advice on credit doesn't necessarily apply to everyone. If you're responsible with your credit you shoudn't have to worry--in fact, carrying wads of cash in your pocket seems much more dangerous--in my humble opinion..... Sorry, Dave.

Why do scores go down?

Apr 02, 2011

Dina, I do sympathize with your situation. Really, you must understand that have literally dropped the bomb on your credit history with a declared banckruptcy. You've just gone nuclear on all your credit reports for years to come. It hardly matters about the 5-10 point drop that normally accompanies a single hard pull inquiry. Your banckruptcy just whacked your scores over 150 points or more, didn't it?  I wouldn't sweat the hard pull, too much, if I were you. That clears itself off in a single year. It stays on your record for 24 months. But it couns against your score only for 12 months. You may even see half of it recouped in 6 to 7 months.

But that bankruptcy does serious damage to your scores for 7 to 10 years. Although it wouldn't surprise me if you started getting a ton of credit card offers--some at ridiculously high interest rates and with heavy fees.

Whatever you do from here on out, first do no additional harm to your credit rating. Start paying off those bills and don't repeat any past mistakes. As the years pass you'll be back on top. But be patient. It can be a years long process to fully recover from bankruptcy and any slip ups on your part will only delay your recovery. Good luck to you, now.

Trends by Age

Jan 01, 2011

Paul: maxing out your credit cards is always a negative.Lenders see this as risky behavior on your part...10 to 30 % is a good rule of thumb--never any more....And always pay it off PDQ.

 And it don't matter how much you make yearly-- if you have charge-offs--you been stiffing your lenders and they do take offense at this--and they gladly  take it out on your scores. Pay your bills. Pay them punctually. Never miss a payment. And in time, your old errors drop off after 7 years....But screw just one lender even one payment late--you're trashing your scores for years to come. So, hey, dude...let's be careful out there...A time may come when having respectable credit could save your life in an emergency...Not having it will sure make for tougher sledding.

Trends by Age

Jan 01, 2011

Great discussion.  But I would point out that a Credit Karma Score of around 760 is not really the top shelf of credit. You're talking about a low B grade. It's when you hit the 800s that you know you've definitely arrived in the big leagues. And to reach those peaks you need to have very mature credit or a whole heap of different types of credit in good standing with good average age of credit values.

Getting good credit is relatively easy and available in 3 to 4 years of responsible payments. Getting outstanding credit takes time. And it also takes numerous applications for credit of various types.  A typical person with a good mix of responsible trade lines can see 800s inside of 8 years. By the way, getting to the top is no guarantee you'll stay there. Even people with 40 year old credit lines can still get whacked bigtime if they don't keep their accounts active--or they make a mistake along the way.   But time is on all of our sides if we use credit responsibly. The rest takes care of itself.

The credit game is one everyone can play andeveryone can win if they act responsibly in the eyes of lenders.

Trends by Age

Jan 14, 2011
Helpful to 0 out of 1 people

Yoozer: That's exactly right: Longevity--or the age of your credit lines--is just ONE of the keys to great credit. Young people do have a bit of  handicap on just this one key. For them, paying their bills on time, keeping their hard pull credit inquiries to a reasonable 1 to 2 per year, and having a mix of different types of credit--like car loans and various credit cards becomes all the more important. But we shouldn't look at this as discrimination in a negative sense. EVERYONE must be willing to porve to their lenders that they are responsible at the credit game. Over time, the payoff is obvious: your scores will rise. Act silly or irresponsible, and the result will be a stiff drop in scores. It's really the fairest system ever devised. The deadbeats get what coming to them. The responsible folks get showered with ever more credit. 

Now really, what could possibly be more fair?