This article is the last article in our article on your fico credit score series, where we will explain in detail each component of your credit score calculation. In the first four parts of this series, we explained how the payment history, the amount owed, the length of the credit history, and the credit combination affect the calculation of the FICO credit score. In the final article, you'll learn about the effects of applying for a new credit card, as well as the difference between hard credit and soft credit inquiry.

The last 10% of the FICO score attempts to determine whether the potential borrower is facing a significant increase in the debt burden by reviewing the new credit request. Opening a few new accounts in a short period of time can be a warning sign for the lender, especially if you don't have a long credit history, or if your credit limit is already high.

One of the most confusing factors in this part is understanding what a hard credit survey is, it will affect your score, and a soft credit survey, it won't.

Hard credit inquiry

When a potential lender asks for your credit score to assess your credibility, a tough survey results. This happens when you apply for a new credit card, mortgage, car loan, or even a new apartment (if the landlord opens a credit card). In the next 12 months, a stern inquiry will affect your score. However, according to Fico, scores are only used to calculate queries that really affect your credit risk. In addition, only voluntary inquiries are considered.

Soft credit inquiry

Soft queries are when your scores are not reviewed by potential lenders, such as when you request your own credit report, and do not affect your credit score. Today, many credit card companies offer free credit scores, and the first credit card companies, Credit Karma and Wallethub, which have recently offered free credit scores and updated daily credit reports. Checking your scores through these companies will not appear as a difficult query in your FICO score calculation.

The fico calculation also allows for price shopping. If you have multiple applications for a car loan, mortgage, or student loan within a 45-day period, these may be considered a single query because you are less likely to get multiple car loans or mortgages. By the same token, if you are looking for a new apartment, as long as your search time is within 45 days, you don't have to worry about multiple landlords asking for credit reports.

Finally, it's important to note that queries typically have minimal impact, and if you have a long credit history, it will affect less than 5 points and will not last long. Although you should try to avoid applying for multiple credit lines in a short period of time, you should not let the potential impact of a query prevent you from applying for a credit line.