topic Re: Why do credit card companies soft you? in Credit Cards

Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 13:19:34 GMT

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?

Re: Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 13:32:45 GMT

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

Re: Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 14:01:22 GMT

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

Re: Why do credit card companies soft you?

Watchmann — Mon, 07 Jun 2010 15:02:46 GMT

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.

Re: Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 15:55:27 GMT

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.

Re: Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 16:22:06 GMT

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

Re: Why do credit card companies soft you?

haulingthescoreup — Mon, 07 Jun 2010 20:15:37 GMT

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.

Re: Why do credit card companies soft you?

Anonymous — Mon, 07 Jun 2010 21:00:01 GMT

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

offers from them.

EX 774

EQ 802

Re: Why do credit card companies soft you?

MarineVietVet — Tue, 08 Jun 2010 02:17:58 GMT

@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

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

Re: Why do credit card companies soft you?

Watchmann — Tue, 08 Jun 2010 02:52:19 GMT

@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.

Re: Why do credit card companies soft you?

Anonymous — Tue, 08 Jun 2010 02:55:23 GMT

I looked at my EX report today, and the softs, what does the prefix DTC, and AD PRM?

Re: Why do credit card companies soft you?

MarineVietVet — Tue, 08 Jun 2010 03:19:37 GMT

@Watchmann wrote:
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.

That very well could be exactly right.

Re: Why do credit card companies soft you?

MarineVietVet — Tue, 08 Jun 2010 03:23:49 GMT

@Anonymous wrote:
I looked at my EX report today, and the softs, what does the prefix DTC, and AD PRM?

DTC- It means Determine(ation) To (Offer) Credit. It is for pre-approved offers.

PRM- Inquiries with this prefix indicate that only your name and address were given to a credit grantor so they can provide you a firm offer of credit or insurance.

Re: Why do credit card companies soft you?

Anonymous — Tue, 08 Jun 2010 03:31:16 GMT

Ok sorry for the questions lol but DTC is obviously a much more intrustive way to see the report if they are not your creditor, although i did request the recon so they had permissible purpose......just on EX website its not mentioned what that means, BTW why does Bloomingdales SOFT ME EVERY SINGE DAY on my EQ its been open forever! since April They have soft 90 TIMES! and of course weird, AMEX which i still love and have my 5 cards with. softs me 4-7 times a month weird?

Re: Why do credit card companies soft you?

Anonymous — Tue, 08 Jun 2010 06:44:47 GMT

Amex pulls me sometimes up to 3-4 times in a day, and I don't have a personal account with them.

I only use to carry a corp amex card.

Weird!

@Anonymous wrote:
Ok sorry for the questions lol but DTC is obviously a much more intrustive way to see the report if they are not your creditor, although i did request the recon so they had permissible purpose......just on EX website its not mentioned what that means, BTW why does Bloomingdales SOFT ME EVERY SINGE DAY on my EQ its been open forever! since April They have soft 90 TIMES! and of course weird, AMEX which i still love and have my 5 cards with. softs me 4-7 times a month weird?

Re: Why do credit card companies soft you?

Anonymous — Tue, 08 Jun 2010 14:46:37 GMT

they can use the information for other adverse actions like cl reduction reduction or to close the account. one reason EX is so popular is the keep a 24 month balance history that useful in in hose risk assessment model

Re: Why do credit card companies soft you?

Anonymous — Tue, 08 Jun 2010 17:03:34 GMT

AMEX i dont care about, and they are softing my best CR!!! If i COULD get my real FICO i am sure its close to 810! But the concern is my Bloomingdales, as long as they have been softing EVERYDAY FOR 3 MONTHS!!! They never even pulled Equifax when they made a decision on my Major purchases account they used EX. yet they dont soft TU or EX? NO CLD no CLI weird weird weird!