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Contributor
zerocredit
Posts: 79
Registered: ‎04-28-2009

Why do credit card companies soft you?

Why do credit card companies soft you? I saw two softs on my report. I was confused because one inquiry was two months after I opened my card?

New Contributor
Hairy_Satchel
Posts: 52
Registered: ‎12-09-2008

Re: Why do credit card companies soft you?

They are checking up on you. Probably hoping you'll get a new baddie so they can raise your rates to the default APR.

Contributor
zerocredit
Posts: 79
Registered: ‎04-28-2009

Re: Why do credit card companies soft you?

I thought per the new credit card act that this was not allowed, checking for new baddies to raise the rate?

Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008

Re: Why do credit card companies soft you?

[ Edited ]

Your credit worthiness is dynamic and changes day to day, the grantor has every right to know what your credit situation is.  If you go out and buy a $100k automobile that will affect how they view your credit worthiness.  The new law doesn't prevent them from looking at your credit profile, it only restricts them how they can react and change your account.

 

Contrary to popular belief, they aren't looking for baddies to change your account, they are looking for situations they may make them rethink keeping you as a customer.  Nothing wrong with that.

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Why do credit card companies soft you?

They may be looking to offer you something.   

 

American Express does a soft inquiry on me every month.    I suspect I will be getting offers in about 5 years.

Regular Contributor
gymbo731
Posts: 219
Registered: ‎01-04-2010

Re: Why do credit card companies soft you?

When they do a soft pull, do they see the exact same thing as a hard pull or is it different?


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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Why do credit card companies soft you?

[ Edited ]

A soft pull from an existing creditor sees the full credit report.

 

A soft pull under the PRM/ promo prefix from a potential creditor only gets your name and address and a very general picture of your credit. For instance, no BK's, no lates within 2 years, etc. These are the ones that can result in so-called pre-approvals and other fun offers. They don't see the full report.

 

I've gotten softed by all my lenders, and I've gotten lots of CLI's as a result.

 

Especially with a new borrower, they want to see that you haven't gone bat-wild with credit, running up lots of debt with other lenders and looking like a potential defaulter.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
casinoannie97
Posts: 1,989
Registered: ‎08-17-2007

Re: Why do credit card companies soft you?

Citi softs me every month on EX.  I have gotten quite a few

offers from them. 

 

EX  774

EQ  802

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Why do credit card companies soft you?

 


haulingthescoreup wrote:

A soft pull from an existing creditor sees the full credit report.

 

A soft pull under the PRM/ promo prefix from a potential creditor only gets your name and address and a very general picture of your credit. For instance, no BK's, no lates within 2 years, etc. These are the ones that can result in so-called pre-approvals and other fun offers. They don't see the full report.

 

I've gotten softed by all my lenders, and I've gotten lots of CLI's as a result.

 

Especially with a new borrower, they want to see that you haven't gone bat-wild with credit, running up lots of debt with other lenders and looking like a potential defaulter.


Let me ask you this. I know that opting out will stop (or it's supposed to) all those pre-approval offers for credit and insurance. Does opting out also stop those soft pulls under the PRM prefix or can they still soft you but just can't send any offers?

 

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008

Re: Why do credit card companies soft you?


marinevietvet wrote:

 

Let me ask you this. I know that opting out will stop (or it's supposed to) all those pre-approval offers for credit and insurance. Does opting out also stop those soft pulls under the PRM prefix or can they still soft you but just can't send any offers?

 

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score


I've been opted out since it first became available and I just checked a recent credit report and the only softs are with those companies I have accounts or business with (CC cos, insurance cos, etc).  Since each soft costs something I don't think a grantor would want to pay for something and not be able to act on the information.


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