The following is a response from FICO regarding an inquiry from our in-house Insurance Representative...Shared with permission.
Email sent to FICO:
If I apply for insurance, and the insurance company checks my credit to determine my insurance score, will that cause my FICO Score to go down?
Response back from FICO:
Hello,
The FICO® score does NOT count:
· Consumer disclosure inquiries - requests you have made for your credit report, in order to check it.
· Promotional inquiries - requests made by lenders in order to make you a pre-approved credit offer.
· Account review inquiries - requests made by lenders to review your existing account with them.
· Employment inquiries - requests marked as coming from employers.
· Insurance inquiries - requests marked as coming from insurance companies.
FICO scores only consider inquiries initiated by you (when you were seeking credit) over the most recent 12-month period. These include mortgage, credit card and auto loan applications. The FICO score treats multiple inquiries from auto or mortgage lenders within a short period of time as a single inquiry, which will have little impact on your credit score. FICO scores only consider inquiries from the last 12 months, although inquiries remain on your credit report for two years.
Looking for new credit can be equated with higher risk. However, FICO® scores are built so that your score is not lowered by the multiple inquiries that may occur when you shop for the best auto or home loan. FICO scores treat multiple inquiries from auto or mortgage lenders within a short period of time as a single inquiry. This inquiry will have little impact on your FICO score.
Federal law requires that all inquiries be kept on file for a period not to exceed 24 months.
Regards,
MyFICO Customer Care
Comments(4)