A credit report has six correctly coded mortgage-shopping inquiries made within a 21-day span and one separate auto-loan inquiry. All seven are more than 30 days old but less than a year old. Under a FICO model with a 45-day same-type shopping window, how are these inquiries grouped for scoring?
Correct Answer
C) The 6 count once under rate shopping; the car inquiry stands on its own
C. Group the six mortgage inquiries together; the auto inquiry is separate. The six mortgage inquiries fall within the specified same-type shopping window. An auto-loan inquiry is not merged into the mortgage-shopping group. Scope and exceptions: FICO versions differ; older versions can use a 14-day window. Grouping for scoring does not erase inquiries from the report or establish an exact score change. Source: Rate-shopping treatment — https://www.myfico.com/credit-education/credit-reports/manage-credit-inquiries Ignore and group rate-shopping inquiries — https://www.myfico.com/credit-education/blog/rate-shop
Why This Is the Correct Answer
C. Group the six mortgage inquiries together; the auto inquiry is separate. The six mortgage inquiries fall within the specified same-type shopping window. An auto-loan inquiry is not merged into the mortgage-shopping group. Scope and exceptions: FICO versions differ; older versions can use a 14-day window. Grouping for scoring does not erase inquiries from the report or establish an exact score change.
Why the Other Options Are Wrong
Option A: None counts, since inquiries are excluded from the underwriting decision
The facts exclude the initial 30-day buffer and do not exclude all inquiries.
Option B: All 7 count separately, because each is a request for new credit
It ignores rate-shopping consolidation.
Option D: The 6 count separately and the car inquiry is excluded as unrelated
It reverses the applicable treatment.
Exam Tip
Check model, loan type and inquiry dates before applying a shopping window.
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