Re: Cell phone service provider Inquiries
01-19-2013 07:49 PM
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.
The only problem is they do not report payment history so it does not help you. They only report if you default.
Well said!! These type of "lenders" ie...wireless services, power companies, and the like are a double edge sword. These companies have all the benefits with none of the responsibility of having to report the good. In my OPINION, this should be a soft pull. At least, these type of inquiries should be less points off vs the traditional method.