Posted by Tim on March 18, 2001 at 14:40:58:
Here’s how the formula works…Everytime a lender pulls your credit bureau it draws 5 points from your score. If you goto a car dealer and they shop you among several banks chances are, they pull your bureau, and so do the banks. Ex. shopped at 4 banks and the dealer would equal 5 inquiries x 5points ea =25 would come off your bureau.
The rule of thumb is that when you begin your credit history it starts at 600 points. Depending how you make your payments it will either go up or down from there. Typically to qualfy for a credit A credit you need a minimum score of 660. Now here’s where it gets weird…there are 3 credit reporting agencies today…TransUnion, equifax, and one other (I can’t think of it right now). They all have their own rating system, but it pretty much follows the above. If your score is above 660 on all of the systems you have nothing to worry about.
There is no way to remove inquiries from your bureau, just time, they will normally fall off after 6-12mos.
The only way to increase your score is time and timely payments…
Hope this helps!
Certified Mortgage Broker