Credit Score Boost: How Your Behavior Affects Your Credit

Recent credit – up to 10%

FICO is the name of the dominant analytics program used to determine credit scores. This information is publicly available to both lenders and borrowers. Here, there are two things you should know:

  • Each time a potential lender requests for your credit score — like a bank or a business — FICO records a hard inquiry.
  • When you request for your credit score, this is a soft inquiry, typically unrecorded by FICO.

When determining your credit score, FICO will consider the number of hard inquiries made over the past year, in addition to other elements of the credit report.

If your recent credit history has seen a sudden rise — such as opening multiple loans or credit card accounts — your credit score is reduced. The lender assumes you are close to your credit limit cap.

It is best to be judicious about the number of times you apply for credit within any 12-month period.