So I've never been a fan of the "app-o-rama" method of applying for credit cards. Because credit reports update with hard pulls in real-time, I've never seen much of an advantage in the AOR. But I just got a copy of my credit report and score and noticed this:
The key portion that stood out to me was the indication that inquiries for "major credit cards" within a 14 day window are merged. I knew this rate-shopping merger applied to mortgages, but have never seen it associated with credit cards until now. Does anyone know if this is accurate or new? If so, I may have to rethink app-o-ramas. Having multiple credit card inquiries merged would lessen the impact on your credit score from all the apps, at least for this scoring model. Though the inquiries will still be on your report, so I suppose some CC issuers may still decline apps for "too many recent inquiries" regardless. In case it's relevant, this was an Experian credit report.
Below is a list of key factors that adversely affected your credit score, in the order of their importance based on their impact on your credit score.
You have too many inquiries on your credit report. (Code: 85)
If a lender runs a credit check when you apply for credit, an inquiry is reported to the credit bureaus. This can lower your score a small amount, typically by 10 to 20 points. The VantageScore credit score model takes rate shopping, e.g., for a mortgage or car loan, into consideration. All inquiries for mortgages, auto loans and major credit cards that appear in your credit file within a 14-day window are interpreted as a single inquiry. Another time inquiries never count against your score is when you check your own credit or obtain your own credit score.
You have too many inquiries on your credit report. (Code: 85)
If a lender runs a credit check when you apply for credit, an inquiry is reported to the credit bureaus. This can lower your score a small amount, typically by 10 to 20 points. The VantageScore credit score model takes rate shopping, e.g., for a mortgage or car loan, into consideration. All inquiries for mortgages, auto loans and major credit cards that appear in your credit file within a 14-day window are interpreted as a single inquiry. Another time inquiries never count against your score is when you check your own credit or obtain your own credit score.
The key portion that stood out to me was the indication that inquiries for "major credit cards" within a 14 day window are merged. I knew this rate-shopping merger applied to mortgages, but have never seen it associated with credit cards until now. Does anyone know if this is accurate or new? If so, I may have to rethink app-o-ramas. Having multiple credit card inquiries merged would lessen the impact on your credit score from all the apps, at least for this scoring model. Though the inquiries will still be on your report, so I suppose some CC issuers may still decline apps for "too many recent inquiries" regardless. In case it's relevant, this was an Experian credit report.