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Why joining CU hurt your FICO score?

Frequent Contributor

Why joining CU hurt your FICO score?

Often enough, when you join a CU or try to rent a room, they will do a credit check, thus leaving a HP that hurts your credit score. 

 

What's the rationale of this? In these circumstances, people are not asking for a loan, why will it hurt your credit score?

 

Thanks. 

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Valued Contributor

Re: Why joining CU hurt your FICO score?


w20031424 wrote:

Often enough, when you join a CU or try to rent a room, they will do a credit check, thus leaving a HP that hurts your credit score. 

 

What's the rationale of this? In these circumstances, people are not asking for a loan, why will it hurt your credit score?

 

Thanks. 


Well if you rent a room they are giving a form of a loan.  They give you space for a month in hopes that they will be paid at the end of the month.  Also I think CU do it more to verify identity IMO.

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Valued Contributor

Re: Why joining CU hurt your FICO score?


ezdoesit wrote:

Well if you rent a room they are giving a form of a loan.  They give you space for a month in hopes that they will be paid at the end of the month.  Also I think CU do it more to verify identity IMO.


I can see why an HP for a rental or cell service or whatever because they are in essence extending credit. But why not an SP for a CU?

 

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