Verity Credit

One key tool for your financial journey is CREDIT.

If you only remember one thing about credit building today, let it be this:

⚡️ The Gold Rule: 35% Matters ⚡️
Your payment history is the single largest factor in determining your FICO® credit score, accounting for 35% of the entire calculation.
How to win: Never miss a payment date.

Ever.
Setting up automatic payments is the single simplest action you can take to protect your 35% and unlock lower rates in the future.

How much will credit inquiries affect my score?
The impact from applying for credit will vary from person to person based on their unique credit histories. In general, credit inquiries have a small impact on your FICO Scores. For most people, one additional credit inquiry will take less than five points off their FICO Scores.

For perspective, the full range for FICO Scores is 300-850. Inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk. Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries often can play a part in assessing risk, they play a minor part are only 10% of what makes up a FICO Score. Much more important factors for your scores are how timely you pay your bills and your overall debt burden as indicated on your credit report. Schedule A Free 30 Min Consultation.
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Credit Checks: What are credit inquiries and how do they affect your FICO® Score?
When you apply for credit, you authorize those lenders to ask or "inquire" for a copy of your credit report from a credit bureau. When you later check your credit report, you may notice that their credit inquiries are listed. The only inquiries that count toward your FICO Scores are the ones that result from your applications for new credit.

It's important to know that there are 2 types of credit inquiries. Soft inquiries such as viewing your own credit report will not affect your FICO Score. Hard inquiries such as actively applying for a new credit card or mortgage will affect your score. Read below to see how much hard inquiries can affect your FICO Score.

More examples of hard inquiries:

You go car shopping and apply for financing at the car dealership and they pull a credit report on you.
You get a preapproved credit card offer in the mail and respond to the offer.
You contact your credit card company and request a credit line increase. The company pulls a fresh credit report on you to help determine if they will grant the line increase.
More examples of soft inquiries:

Your bank gets an updated FICO Score on all its customers to check the credit quality of its customer base.
You got a new job and your employer pulled your credit report as part of its new employee screening process.