Re: Cell phone service provider Inquiries
08-08-2012 09:54 AM
It makes perfect sense by carriers do a HP, I fail to understand how others fail to understand.
The issue isn't wether they can do a INQ on your CR but wether it should count against you like applying for a loan.
It's easy to understand why people would get upset about this if they were deined say a car loan because they just moved to a new area and had to get cable, power, new apartment , cell phone or it took their FICO score out of range for the interest rates they wanted.
As I already tried to explain, signing up for wireless service or utilities or anything else is applying for credit, simply not in the traditional sense of here's a credit line, go use it.
Almost all services today are postpaid, meaning you use their services first and you pay for it second. It also means there is a chance you will default, not pay your bills, or simply move/disappear altogether. Most cable or internet companies have routers, digital converters, etc., which all cost a lot more money than they're actually charging you because you're getting the subsadized versions, much like cell phones.
A cable company is extending a line of credit to you, however, it's only good for services through them. Honestly, it's basically like a store card, just without the physical card. I don't see people complaining when Macy's or Best Buy pulls their credit, and utilities or cell phone service is no different.
What's the difference in information from a hard and a soft inquiry?
I wonder why they just can't do the latter instead...?
People have argued this for a while, however, companies can get more information with a hard pull than they can with a soft pull usually. The entire purpose of reporting inquiries as well is to show who is looking for credit/applied for credit, etc. Signing up for cellular service is applying for credit, so to only do a soft pull is basically defeating the purpose of the system.