A single recent inquiry by FIA CSNA caused my FICO score to drop by 10 point (From 749 to 739) despite the fact that I recently paid of more the $4,000 wiping out two credit card debts. What's give?
A hard inquiry remains in your credit report for two years from the date of entry in your credit report may lower your credit score by 5 t0 10 points. Whenever, you apply for a new line of credit, be it a credit card or other loans, the creditor pulls out your report to check your credit worthiness. This is known as hard inquiry. It has no connection with your repayment of the debt. If you continue repaying off the debt in time, the credit history will improve and hence your score would also improve.
FIA CSNA is the credit card section of the Bank of America. I think that an inquiry has been conducted by FIA CSNA as you have applied for credit card through BOA. However, as per the fair credit reporting Act, only authorized inquiry should remain in your report, i.e, the inquiry should stay in your report if you have either applied for the card online with your ss number or have signed a credit card application form. If you have not applied for a card through BOA, you can send a letter to the inquirer asking them either to verify your authorization or to remove it from your report.
Thanks for the fast replies.
I called Equifax and filed a dispute. I have a $25,000 line of credit on my BofA card (Which has a balance of about $6,000) I did requested a $5,000 increase which I was granted automatically. I didn't know that a simple request of a line of credit increase would result in 10 point drop in my Fico score. I've done the same thing with other credit cards before and never experience this type of action.
Thanks again.
E.Z.
Since you already have a very big credit limit with the card, BOA has pulled out your credit report to check you credit history. Now, since you have neither applied online nor through signing an application form to increase your line of credit, it means that you have not authorized them to pull out your credit report and conduct a hard inquiry. So this hard inquiry can easily be removed and your credit score will improve. For this you need to send a letter to FIA CSNA asking them either to verify your authorization or remove the hard inquiry from your report.
A hard inquiry remains in your credit report for two years from the date of entry in your credit report may lower your credit score by 5 t0 10 points. Whenever, you apply for a new line of credit, be it a credit card or other loans, the creditor pulls out your report to check your credit worthiness. This is known as hard inquiry. It has no connection with your repayment of the debt. If you continue repaying off the debt in time, the credit history will improve and hence your score would also improve.
FIA CSNA is the credit card section of the Bank of America. I think that an inquiry has been conducted by FIA CSNA as you have applied for credit card through BOA. However, as per the fair credit reporting Act, only authorized inquiry should remain in your report, i.e, the inquiry should stay in your report if you have either applied for the card online with your ss number or have signed a credit card application form. If you have not applied for a card through BOA, you can send a letter to the inquirer asking them either to verify your authorization or to remove it from your report.
FICO score change
Thanks for the fast replies.
I called Equifax and filed a dispute. I have a $25,000 line of credit on my BofA card (Which has a balance of about $6,000) I did requested a $5,000 increase which I was granted automatically. I didn't know that a simple request of a line of credit increase would result in 10 point drop in my Fico score. I've done the same thing with other credit cards before and never experience this type of action.
Thanks again.
E.Z.
Since you already have a very big credit limit with the card, BOA has pulled out your credit report to check you credit history. Now, since you have neither applied online nor through signing an application form to increase your line of credit, it means that you have not authorized them to pull out your credit report and conduct a hard inquiry. So this hard inquiry can easily be removed and your credit score will improve. For this you need to send a letter to FIA CSNA asking them either to verify your authorization or remove the hard inquiry from your report.