Does your credit score drop from too many inquiries and why?

It is a misconception that your credit score drops from too many inquiries. But there are a few cases where it may so happen. An individual’s does not really drop automatically when a credit report is requested. Credit scores are determined by the different credit bureaus after considering a exhaustive list of factors, such as the number of open accounts and the individual’s payment history.

As far as the number of inquiries for a credit report (which is also known as “requests”) is concerned, it barely makes just 10% of the criteria based on which a credit score is adjusted. There are a few credit experts who have expressed an opinion that credit scores can drop by even as much as 5 points if a request for credit report goes in, but the popular opinion among the specialists is that this idea is more of a myth than actual reality.

Soft credit inquiries, which occur if consumers request their own credit card reports from a bureau, or even if a current creditor requests a credit report while investigating a dispute, don’t have any effect on a person’s credit score. On the other hand, hard inquiries, which occur if credit reports are requested by lenders who may be considering new loans, or by others who might have liens or judgments against the person, may lower an individual’s credit score under specific conditions.[tags]credit score inquiries,inquiries affect credit score,inquiries and credit score,inquiries hurt credit score,inquiries on credit score,inquiries lower credit score,credit inquiries credit score,inquiries effect credit score,credit inquiries affect credit score,do inquiries affect your credit score,credit inquiries and credit score,do inquiries affect credit score,inquiries affect your credit score[/tags]