Loan Officer Practice Exam

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How long does a FICO Score consider a credit inquiry in its calculations?

3 months
12 months
6 months
9 months

The correct answer is: 12 months

A FICO Score considers a credit inquiry in its calculations for a duration of 12 months. This period is essential because inquiries can influence a borrower's creditworthiness. When a lender requests credit information, it results in a hard inquiry, which may slightly lower the FICO Score. However, the impact diminishes over time. After one year, the inquiry is no longer considered in the FICO Score calculation. This timeline allows for a fair assessment of a consumer's creditworthiness while also taking into account the likelihood that multiple inquiries might reflect a consistent need for credit rather than a sign of financial instability. By limiting the influence of inquiries to 12 months, the FICO Score provides a balanced view of credit behavior over time.