The Facts

• According to the Fair Isaac Corporation, numerous credit inquiries in a short period of time may lower an individual's credit score. However, FICO recognizes a consumer's search for a low interest rate on an auto or home loan as rate-shopping and treats these inquires differently than attempts to open several new credit accounts.
  
  

Considerations

• The impact that a credit inquiry, including an auto inquiry, may have on a consumer's FICO score varies according to the length of his credit history. FICO estimates that most credit scores may fall up to five points with each added inquiry.
  
  

Time Frame

• FICO disregards any auto loan inquiries made during the 30 days before scoring. Auto inquiries conducted more than 30 days before scoring also are grouped together and counted as one inquiry. As a result, most auto inquiries have little or no impact on an individual's score.