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New Contributor
Posts: 56
Registered: ‎12-28-2007
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Will I get a bad inquiry for requesting CLI?

I want to call and request a CLI and APR reduction on one of my accounts. However, I don't really want the inquiry because I have two as a result of purchasing a vehicle - one from the dealer and one from the city I live in... I guess they pull your credit before they will register your vehicle? Weird.

Anyway, is that considered a "bad" inquiry if I already have credit with them, but I just want a lower APR and higher CL?
- Catz
12/01/09 TU 759 EQ 756

10/01/08 TU 697 EQ 659
07/05/08 TU 693 EQ 663 EX 711
06/01/08 TU 657 EQ 610 EX 670
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
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Re: Will I get a bad inquiry for requesting CLI?



catzcradle wrote:
Anyway, is that considered a "bad" inquiry if I already have credit with them, but I just want a lower APR and higher CL?

Who is the issuer?  Some pull hard for CLI, and some don't.

 
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App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Valued Contributor
Posts: 1,185
Registered: ‎03-04-2008
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Re: Will I get a bad inquiry for requesting CLI?

I don't think you applied for credit with your "city". There would be no PP for this inquiry and it should be questioned with them in writing using the NO PP letter found elswehere on this site.
 
This hard credit inquiry stuff is getting just rediculous.
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
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Re: Will I get a bad inquiry for requesting CLI?



jmbfl wrote:
I don't think you applied for credit with your "city". There would be no PP for this inquiry and it should be questioned with them in writing using the NO PP letter found elswehere on this site.
 
This hard credit inquiry stuff is getting just rediculous.


It is a common misconception that the only time anyone has a right to pull a hard inquiry is when you are applying for credit with them.
 
The FCRA actually provides only very broad requirements to establish permissible purpose, and the FTC has published several staff opinion letters that detail several cases where they believe PP exists, which have nothing to do with credit at all.
 
Did you know, for example, that according to the FTC, paying by check is enough to give the merchant PP?  If the OP had made the car registration payment by check, that right there would be enough for the DMV to defend the pull.
 
 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
New Contributor
Posts: 56
Registered: ‎12-28-2007
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Re: Will I get a bad inquiry for requesting CLI?

Hmm, I paid the down payment to the dealership with a check. The dealership did all the DMV stuff for me. All I know is that I have one inquiry from American Honda and one that says the name of the city I live in. That's all I know. I didn't think the DMV or the city treasurer would need pull my credit, but who knows.

Oh, and the card issuer is Chase, if it helps.
- Catz
12/01/09 TU 759 EQ 756

10/01/08 TU 697 EQ 659
07/05/08 TU 693 EQ 663 EX 711
06/01/08 TU 657 EQ 610 EX 670
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
0

Re: Will I get a bad inquiry for requesting CLI?



catzcradle wrote:

Oh, and the card issuer is Chase, if it helps.

Yes, that helps a great deal since different issuers have different policies.
 
Chase WILL pull a hard inquiry if you request a CLI, I'm sorry to say.

 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Frequent Contributor
Posts: 366
Registered: ‎12-20-2007
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Re: Will I get a bad inquiry for requesting CLI?

chase always does a hard pull they like for the acct to be open at least sixmonths and you can call CS and ask for the apr team I got mine lowered from 19.99 to 13.99 % last week! I think you have to qualify for it but im sure you can talk your way through it i told them i wanted to use my card for everyday usage! 0% apr on the first 12mos i believe on my BPvisa frm chase! gl
~EveryThing Is Within REach~FICO FORUM roCKs.....
Frequent Contributor
Posts: 339
Registered: ‎12-12-2007
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Re: Will I get a bad inquiry for requesting CLI?

yup....chase did a hard pull on me a couple of weeks ago when I did an online CLI request. Got it thankfully, but lost 15 points on EQ
God is keeping score....be good to others.
Valued Contributor
Posts: 1,185
Registered: ‎03-04-2008
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Re: Will I get a bad inquiry for requesting CLI?

Cheddar -
 
Can you post some links to the information you cite? I would like to read the opinion letters.
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Posts: 6,794
Registered: ‎09-29-2007
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Re: Will I get a bad inquiry for requesting CLI?



jmbfl wrote:
Cheddar -
 
Can you post some links to the information you cite? I would like to read the opinion letters.


Certainly.  Here are three that I have bookmarked.  Keep in mind that I am not maintaining that the OP's city had PP to pull a report for registering a vehicle; nor am I arguing that these letters support any such position.  I am simply illustrating the fact that PP is not limited to credit-related transactions, as many people seem to think.
 
 
 
"For example, a landlord to whom a consumer applies to rent an apartment, a bank to which a consumer applies to open a checking or savings account, or a merchant to whom a consumer offers a personal check as payment for goods or services has a 'permissible purpose' to obtain a consumer report under this provision."
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"Section 604(a)(3)(F) allows a person to obtain a consumer report in connection with non-credit transactions. Section 604(a)(3)(F)(i) provides a permissible purpose on behalf of a party who has a legitimate business need for a report 'in connection with a business transaction that is initiated by the consumer.' Thus, for example, a merchant may procure a report on a consumer who offers to pay for goods with a personal check.  Section 604(a)(3)(F)(ii) provides a permissible purpose for a party that has a legitimate business need in connection with an ongoing relationship 'to review an account to determine whether the consumer continues to meet the terms of the account.' Thus, a financial institution may obtain a report on an existing checking or savings account customer."
 
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"The dealer may also obtain a report to check a consumer's creditworthiness when the consumer presents a personal check to pay for the vehicle. By contrast, a permissible purpose would not arise if a consumer intends to pay by cash."
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App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
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