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Are Credit Inquiries Really That Bad?

A lot has changed in the world of credit inquiries in the last 35 years.  Many people believe they are very bad and they should try hard to avoid them.

30 Years ago,  many people did not know what credit inquires were.

In 2022 a high percentage of the population knows what credit inquiries are.  Many believe that even one or two extra inquiries are very harmful to their credit.    Are they really THAT bad?

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In terms of credit issues that may be considered “bad”, credit inquiries are probably the least worst offenders.  Credit scores recover from credit inquiries faster than just about any other personal credit item that is considered derogatory.

When Credit Inquiries begin to hurt credit

Inquiries will have a very limited affect on a credit file if the number of inquires is small.   Credit inquiries begin to hurt a credit file more significantly if the number of credit inquires is more than about 5 in one month.

When some of these inquiries are from Car Dealers or Mortgage companies, they may not affect a person’s credit score at all.

If the number of inquiries is 5 in the last 30 days, try to minimize the number of inquires in the next 30 to 60 days.

Once an individual does have more than 10-15 inquiries within a month, as long as they go a few months without almost any inquiries, their score will recover quickly.

Their credit score will likely be close to what it was within 2 to 4 months.

In summary, are credit inquiries really that bad?    In many cases, a few credit inquiries on a credit file within 30 days have a minimal impact on someone’s credit bureau score.

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